In today's fast-paced and highly competitive business world, knowing how to improve and streamline complex B2B journeys can be the difference between success and stagnation. Proxy metrics, often underused, can be the key to accelerating your optimization efforts. Let’s unpack what proxy metrics are, why they matter, and how to use them effectively.
What Are Proxy Metrics?
Proxy metrics represent measurable actions or behaviors that indicate progress toward a final goal, such as revenue generation or customer retention. Unlike revenue metrics, which often take weeks or months to materialize in long B2B sales cycles, proxy metrics provide quicker feedback. Think of them as early signals that guide you in shaping your strategy before reaching the ultimate outcome.
For example, tracking the number of calculated quote requests instead of waiting for deal closures is a practical way to predict revenue trends faster.
Why Are They Essential?
For businesses grappling with drawn-out sales processes, waiting for conversion data can mean wasting valuable time. Proxy metrics help bridge this gap. A study by Intentsify reveals that using metrics like lead conversion rates and customer acquisition cost (CAC) as proxies allows marketers and sales teams to realign their strategies much earlier. This flexibility leads to better campaign performance by addressing inefficiencies quickly.
Common Proxy Metrics and What They Measure
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Lead-to-MQL (Marketing Qualified Lead) Conversion Rate
Indicates the effectiveness of top-of-funnel activities like email campaigns or paid ads. A dropping conversion rate may signal a mismatch between the campaign message and the target audience. -
Free Trial Signups or Demos Scheduled
Offers insights into whether your product messaging resonates with prospective clients. These actions are a clear indication of interest in engaging further. -
First Response Time to Inquiries
Helps identify how quickly your team engages prospects, a critical factor in improving conversion rates in competitive B2B sectors. -
Engagement in Nurture Campaigns
Metrics like email opens, clicks, or content downloads showcase whether your messaging is keeping prospects interested until they’re ready to make a decision. -
Pipeline Velocity
Measures the time spent by leads in each stage of the sales funnel. Shorter cycles could indicate the success of recent optimizations in reducing buyer friction.
Each metric provides actionable insights. For example, an underperforming nurture campaign may suggest that your content is too generic or misaligned with the audience's needs.
How to Use Proxy Metrics for Faster Optimization
Here’s a practical guide to get started:
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Identify Metrics Closely Linked to Revenue
Select metrics that are strongly correlated with actual conversions. For example, instead of tracking website visits, measure trial signups that directly lead to new accounts. -
Use Real-Time Analytics Tools
Platforms like Google Analytics or HubSpot offer tools that can isolate proxy metrics and track changes effectively. Learn more on how HubSpot’s CRM integrates such tracking in long sales cycles. -
Optimize Based on Micro-Conversions
Adjust ad targeting, content flow, or even early discounts based on behaviors like demo requests, before waiting for the final sale. -
Test and Refine Continuously
Using A/B tests on campaigns tied to proxy metrics, such as different lead magnets, can reveal what resonates with your target segment and what you should adjust.
Mistakes to Avoid When Working with Proxy Metrics
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Relying on Weak Proxies
Metrics like page views or social media likes may make your dashboards appear impressive, but they often fail to correlate directly with revenue. Instead, prioritize signals like booked meetings or qualified lead submissions. -
Not Revisiting Metrics Regularly
The relationship between proxy metrics and final KPIs can shift due to market trends or changes in customer behavior. Periodically reassess the metrics you're tracking. -
Ignoring Segmentation
If proxy metrics like free trial signups come predominantly from segments with a low likelihood to convert, you're optimizing blindly. Segment your data carefully to focus on higher-value prospects.
Real-World Example of Proxy Metrics in Action
A software-as-a-service (SaaS) company providing tools for customer relationship management faced long average sales cycles, often up to six months. By using demo scheduled meetings as a proxy metric instead of waiting for confirmed purchases, the marketing team was able to test advertising platforms and messaging strategies quicker. They found that LinkedIn ads brought in users who were 30% more likely to schedule a demo than those reached through Facebook ads. Shifting a larger percentage of their spend to LinkedIn produced quicker results without increasing their overall budget.
Wrapping Up
Proxy metrics simplify the process of navigating the intricacies of long B2B sales cycles. When thoughtfully selected, they become your compass, allowing you to evaluate and adjust campaigns months ahead of revenue being generated. Just remember to choose metrics that are specific, measurable, and tightly correlated to revenue outcomes. For more on how to identify and apply relevant metrics, visit the detailed article on how to fine-tune your funnel efficiency.
Proxy metrics are not just about making faster moves, they're about making smarter moves. When every decision pits limited resources against ambitious goals, knowing exactly where to focus can be transformative for your business. Whether you’re stepping into unfamiliar markets or fine-tuning a proven strategy, let these metrics guide the way. Remember, simple adjustments made early often lead to significant improvements down the line.
FAQ on Using Proxy Metrics
1. What are proxy metrics?
Proxy metrics are measurable actions or behaviors that act as early indicators of final business goals, such as revenue or customer retention. They provide quicker feedback than end-stage metrics like deal closings. Learn more about proxy metrics
2. Why are proxy metrics essential in B2B sales cycles?
Proxy metrics allow businesses to optimize long sales processes by offering faster insights into performance. Waiting for final conversion data delays strategy adjustments, whereas proxy metrics enable real-time refinements. Discover how Intentsify uses proxy metrics
3. What are examples of common proxy metrics?
Examples include lead-to-MQL conversion rates, free trial signups, demo requests, first response times to inquiries, and engagement in nurture campaigns. Each metric predicts eventual business outcomes like conversion or revenue. See examples of useful proxy metrics
4. How do proxy metrics improve campaign optimization?
They bridge gaps in data during long sales cycles, allowing optimization based on micro-conversions such as signups or lead engagement. This accelerates learning and reduces inefficiency in campaigns. Explore proxy metric optimization tips
5. What is pipeline velocity and how is it a proxy metric?
Pipeline velocity measures the time leads spend in each stage of the sales funnel. Faster pipeline velocity indicates successful optimizations to reduce buyer friction. Learn more about pipeline velocity
6. How should businesses select strong proxy metrics?
Choose metrics that are tightly correlated with revenue, actionable, and available quickly. Avoid metrics that look good on dashboards but don’t predict revenue, like simple page views. See recommendations for selecting metrics
7. What tools help track proxy metrics effectively?
Real-time analytics tools like Google Analytics and marketing automation platforms such as HubSpot or Marketo are excellent for tracking and analyzing proxy metrics. Explore how HubSpot tracks metrics
8. What mistakes should you avoid when using proxy metrics?
Avoid relying on weakly correlated proxies, failing to review metrics regularly, and ignoring segmentation. Proxy metrics must align with revenue outcomes and adapt to market changes. Learn about avoiding common mistakes
9. How do proxy metrics support machine learning in ad platforms?
They act as frequent, meaningful signals that train machine learning algorithms to optimize campaigns, especially when final conversions or revenue data lag significantly in B2B sales. Discover how AI utilizes proxy metrics
10. Can proxy metrics optimize long B2B sales cycles?
Yes, proxy metrics provide actionable insights months before final outcomes like revenue. For instance, a SaaS company might use demo requests as an early indicator of future deal closures. Read a real-world example of proxy metrics in action
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.