Many Australian SMEs face a common challenge: demonstrating the return on investment (ROI) of marketing when deals take months, even years, to close. It’s easy to feel like you’re throwing good money after bad when immediate sales aren’t forthcoming. However, a lengthy sales cycle doesn’t mean marketing is ineffective; it simply means we need to measure and report on its impact differently. We need to shift our focus from solely attributing revenue to the final sale, and instead, track the value created *throughout* the customer journey.

Here’s how we can justify marketing spend when sales cycles are extended:

• Focus on Pipeline Value, Not Just Closed Deals: Instead of solely tracking leads that convert to sales this quarter, analyse the total value of opportunities marketing activities have influenced within your sales pipeline. A robust Customer Relationship Management (CRM) system is essential for this. We can then forecast potential revenue based on pipeline stage and conversion rates.
• Implement Multi-Touch Attribution: Understand which marketing touchpoints are contributing to progress. First touch attribution (the initial interaction) isn’t enough. We need to model how multiple interactions – a webinar, a case study download, a social media engagement – collectively move prospects closer to a purchase.
• Track Leading Indicators: Identify metrics that reliably predict future sales. These might include website traffic, qualified lead generation, marketing qualified lead (MQL) conversion rates, and sales accepted lead (SAL) volume. These indicators provide early signals of marketing effectiveness.
• Invest in Account-Based Marketing (ABM): For businesses targeting larger clients with complex buying processes, ABM can be highly effective. By focusing marketing efforts on specific, high-value accounts, we can demonstrate a clear link between marketing activity and individual deal progression.

Remember, a long sales cycle isn’t a reason to *stop* marketing; it’s a reason to become more sophisticated in how we measure its impact. By focusing on pipeline value, multi-touch attribution, leading indicators, and potentially ABM, we can build a compelling case for continued investment and demonstrate the true contribution of marketing to overall business growth. The key is to move beyond simplistic ‘last-click’ reporting and embrace a more holistic view of marketing’s role in nurturing long-term customer relationships.

To get started, we recommend auditing your current marketing measurement framework. Identify what you’re currently tracking, and where the gaps are in providing a clear picture of marketing’s contribution to the sales pipeline.