In this episode of Demand Gen Studio, we discussed an important topic for modern marketers: which B2B demand generation metrics truly matter. While some numbers may look impressive on paper, not all of them influence strategic decisions.
This discussion focuses on distinguishing between vanity metrics and the KPIs that actually drive alignment between marketing, sales, and executive teams—ultimately guiding smarter business decisions.
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Understanding Decision-Worthy Metrics
To determine whether a marketing metric is truly decision-worthy in B2B demand generation, it must align closely with the overarching goals of the business.
As explained in the episode, while every stakeholder—from CEOs to investors—cares most about return on investment and shareholder value, not every department directly influences these outcomes. However, they all contribute in meaningful ways.
For marketers, the key is to identify metrics that reflect how well demand generation efforts support broader business objectives like revenue growth, efficiency, and stakeholder value.
Metrics worth tracking are those that not only provide insight but also inform action and resource allocation within the organization.
Aligning Marketing Metrics with Business Goals
Marketing teams often face the challenge of proving their impact without overstepping into the domain of sales.
While marketing must align with business priorities—such as market share, profit margin, and sales growth—it plays a distinct role in shaping brand presence and long-term demand.
Marketers shouldn’t be judged solely on short-term sales results but on their contribution to building awareness and creating pull for the brand.
The most effective marketing metrics, therefore, are those that bridge this gap: aligning with business objectives while recognizing marketing’s unique influence on sustainable growth, future pipeline, and market positioning.
Vanity Metrics vs. Actionable Metrics
While vanity metrics often carry a negative connotation, they aren't inherently bad—they simply lack direct connection to business outcomes.
Metrics like website traffic or social media followers can indicate reach or awareness but don’t always reflect meaningful engagement or revenue impact. Any metric—no matter how impressive—can become vanity if it’s misaligned with strategic goals or optimized in isolation.
The danger lies in treating metrics as the end goal, rather than tools to reach the end goal.
Actionable metrics are those that provide insight into real progress and guide decision-making. They help marketers understand what’s working, where to invest, and how to move closer to business objectives.
Metrics are like a GPS - they’re meant to guide you, not define the destination.
Key Demand Generation Metrics for B2B Businesses
Key demand generation metrics for B2B businesses center around pipeline health and efficiency.
Demand gen has evolved in response to frustrations with traditional lead gen tactics that failed to drive real business outcomes. While leads and MQLs matter, what ultimately counts is their impact on revenue-generating pipeline.
Four core metrics to focus on are:
- number of opportunities, or how many deals are entering the pipeline
- win rate, or the percentage of those deals that successfully close
- sales velocity, or how quickly deals move through the pipeline
- deal size, which influences overall revenue without increasing the number of transactions.
These metrics mirror inventory turnover in a supply chain—faster movement and higher value create more impact.
While not all are directly within a marketer’s control, demand generation must be focused on driving measurable business value across marketing, sales, and customer success.
The Importance of Alignment Between Marketing and Sales
One of the biggest pitfalls in demand generation is when marketing and sales teams operate in silos. For example, if marketing is focused on generating as many MQLs (Marketing Qualified Leads) as possible without considering quality, it can hurt conversion rates further down the funnel. A flood of low-quality leads might look good on paper, but if they don’t turn into SQLs (Sales Qualified Leads) or customers, it’s wasted effort.
Both teams need to be working toward the same business goals—not just hitting isolated target metrics. Metrics like MQL-to-SQL conversion rate, cost per lead, and cost per customer need to be viewed in context.
Are you growing fast enough?
Are you doing it efficiently?
Are you acquiring customers profitably?
Some companies may be in a growth phase where gaining market share—even at the expense of short-term profit—makes sense. Others may prioritize maintaining profitability and protecting their current market position. Demand gen strategies should reflect the overall goal and priority of the business.
At the end of the day, demand generation doesn’t just mean hitting marketing metrics—it means contributing to sustainable business growth. And that only happens when marketing and sales are working together towards common goals.
Measuring Efficiency and Ratios in Demand Generation
When it comes to measuring demand generation performance, it's not enough to track raw numbers like leads or revenue alone—you also need to understand the efficiency behind those results.
Metrics like cost per lead, cost per opportunity, and cost per customer help reveal how effectively you're turning investment into growth.
But efficiency doesn’t look the same for every business.
Some companies might be willing to spend more to gain market share or increase brand visibility, especially in competitive or fast-moving industries.
What matters most is aligning your spend with your company's strategic goals and understanding which trade-offs—like short-term efficiency for long-term growth—make sense for your stage and market.
Tools for Tracking Metrics in Demand Generation
Tracking demand gen metrics in B2B requires more than just selecting a tool—it needs a strategy built around attribution, visibility, and alignment with business goals.
With demand gen efforts spread across search, social, video, and more, a core challenge is unifying data from fragmented sources. That’s why establishing a single source of truth is critical.
Early-stage companies often start with a CRM like HubSpot or Salesforce, which can centralize marketing and sales data, offer basic attribution models, and help track pipeline health.
As companies mature, they often graduate to business intelligence platforms that integrate data across tools and visualize both performance and efficiency metrics.
By focusing on meaningful metrics that tie directly to business goals and continuously optimizing based on real data, B2B teams can drive smarter growth and stronger results. Remember, it’s a process of learning, adapting, and always returning to the North Star of the big-picture business goals.
Interested in learning more? Check out the rest of the episodes of Demand Gen Studio. We discuss marketing and demand generation topics, with inspiring interviews with thought leaders. See you next time!
