Interestingly, benchmarks and research reports can be both intriguing and misleading in B2B marketing. These reports often claim, "It takes XX impressions to reach an MQL" or "YY touches to create an opportunity." While these insights provide general guidance, they should be approached with caution, especially when applying them directly to your unique business context.
The Tyranny of Averages
One of the biggest challenges with benchmarks is that they suffer from the tyranny of averages. These reports typically aggregate data from numerous companies and provide an "average" result. For instance, a benchmark might suggest that it takes 10 touches to convert a lead into an opportunity. However, this average doesn’t account for the specific nuances of your business, including your company’s stage, industry, product type, or geographical market.
Research Insight: According to a report by Forrester, while benchmarks can serve as a helpful starting point, only 40% of companies find them fully applicable to their unique business context. This suggests that relying solely on these averages can lead to misguided strategies.
Why Benchmarks Might Not Apply to You
Marketing benchmarks are often based on data from a sample of companies that may not share your specific characteristics. For example, if the benchmark is based on SaaS companies in a mature market, its applicability to a startup in a different industry could be limited. The number of touches or impressions needed for conversion can vary widely depending on market saturation, customer awareness, and the competitive landscape.
Moreover, benchmarks don’t account for the intricacies of your Go-To-Market (GTM) motions. A company with a highly specialized product might require a different number of touches compared to a company with a more generic offering.
Statistical Insight: Gartner found that businesses that blindly apply industry benchmarks without adjusting for their unique circumstances see up to a 25% decrease in marketing efficiency. This statistic underscores the importance of tailoring strategies to fit your specific business model.
The Danger of Overgeneralization
Using benchmarks as a strict guideline can lead to overgeneralization. For instance, if a benchmark suggests that 20 impressions are needed to convert a lead, you might over-invest in driving those impressions, ignoring other vital aspects of your marketing strategy. This approach can result in wasted resources and missed opportunities to engage with potential customers in more meaningful ways.
Additionally, overreliance on benchmarks can discourage experimentation and innovation. If your marketing strategy is too focused on meeting benchmark metrics, you might overlook unique opportunities to differentiate your approach and gain a competitive edge.
Practical Application: Proceed with Caution
So, what’s the takeaway? While benchmarks are valuable for providing a broad understanding of industry trends, they should not be treated as a one-size-fits-all solution. Use them as a reference point, but always tailor your strategies to your specific business needs.
Actionable Advice:
- Contextualize Benchmarks: Consider how the benchmark data applies to your unique business environment. Adjust the numbers to fit your specific market conditions and GTM strategy.
- Combine with Internal Data: Use benchmarks in conjunction with your internal data to create a more accurate picture of what works for your company.
- Experiment and Iterate: Don’t be afraid to deviate from benchmarks. Experiment with different approaches, measure the outcomes, and refine your strategy based on what works for your business.
Final Thought
Benchmarks are a good conversation starter, but they’re not the final word. Always question their relevance to your business before applying them wholesale.
Engage with Your Peers
What’s your take on marketing benchmarks? Have you found them useful, or do you agree that they should be approached with caution? Let’s discuss it!
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Read our unique POV on this here.
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