Receiving beautiful charts and graphs full of meaningless and obscure digital metrics? Learn the six marketing metrics CEOs actually care about. Digitally generated metrics produce a seemingly endless array of artfully displayed dashboards, charts and colorful graphs. Yet this may only prove that computers can count and beautifully display more data faster than any team of humans ever could. And we already knew that. What do CEOs actually care about measuring in a marketing program? Ultimately only one thing matters: ROI. But how does one go about calculating the ROI of marketing time, cost and effort?
The ROI of marketing efforts can be proven with six metrics.
- The Customer Acquisition Cost (CAC) is a metric used to determine the total average cost your company spends to acquire a new customer.
- The Marketing % of Customer Acquisition Cost is the marketing portion of your total CAC, calculated as a percentage of the overall CAC.
- The Ratio of Customer Lifetime Value to CAC is a way for companies to estimate the total value that your company derives from each customer compared with what you spend to acquire that new customer.
- The Time to Payback CAC shows you the number of months it takes for your company to earn back the CAC it spent acquiring new customers.
- The Marketing Originated Customer % is a ratio that shows what new business is driven by marketing, by determining which portion of your total customer acquisitions directly originated from marketing efforts.
- The Marketing Influenced Customer % takes into account all of the new customers that marketing interacted with while they were leads, anytime during the sales process.
Learn exactly how to develop these six marketing metrics and see specific examples.