Marketing Metrics that Matter to Your Boss

August 25, 2018 / in marketing metric / by Bill Stern

Marketing metrics that matterAs an entrepreneur I've always had more than a passing interest in marketing. I was exposed to corporate marketing early in my career as a retail merchandiser and used much of what I learned when I started The Natural Dentist oral care brand in 1995, at the dawn of the digital marketing age. We developed and executed a number of successful campaigns that targeted dentists and consumers. We were using elements of inbound marketing without realizing it

Since leaving TND (the second time, but that''s a different story) I've worked with a number of companies on different aspects of marketing like web design, seo, blogs, ppc.


The adage in product marketing is if you have a solution to a problem you can own that problem. I approached my consulting work in much the same way. I attempted to diagnosis the problem and offer a specific solution. The problem is this assumed that the issue could be solved by a specific solution. Digital marketing is not like that. It does best when each element is aligned and integrated with the sales process.

What metrics are  important to measure?

Back then I struggled with defining what the really important marketing metrics were. At first we were excited to get visitors, then leads. CTR seemed like the important measure. It seems like ancient history and it was not that long ago.

Today marketing automation measures each activity instantly so you can optimize right away. It's a huge advantage for companies big and small.

Still today 73% of executives do no think marketers are focused on meaningful results that impact bottom line performance.  Which are the most important metrics they want to see? There are a few metrics that really show marketing's impact on the bottom line. Here are a couple of examples.

Customer Acquisition Cost;

The average cost to acquire a new customer. Take the total marketing and sales spend which includes salaries, overhead and all expenses during a period / new customers acquired during that period. Ideally you want a low Customer Acquisition Cost and if you notice it starting to rise it could mean some inefficiency in your marketing or sales process.

Time to pay back Customer Acquisition Cost;

This is how long it takes a customer to cover his acquisition cost. It is calculated by dividing the customer acquisition cost (CAC) by the monthly margin adjusted revenue. For example if CAC was $5,000 and monthly revenue was $1,000 the pay back time would be 5 months. Businesses generally want this to be no more than 12 months. 

Marketing Originated Customer %

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. It's easy to calculate. Just divide the marketing leads that became new customers by the total number of new customers. Say there were 10,00 new customers and 5,00 started as marketing leads. This means half of the company's new customers originate from a marketing campaign. If you have an inside sales team and a good leads process this is the number you want. Other companies without a strong leads effort will be around 20-30%.

There are more metrics that matter that you can learn about in the new ebook '6 Marketing Metrics That Matter to Your Boss' You can download the book by clicking on the button below. The book will show you

  • 6 marketing metrics that prove the value of your marketing efforts

  • Formulas and examples to help you calculate your own metrics

  • Explanations and scenarios of why these metrics are important and how to interpret them

As marketers, we track so many different data points to better understand what’s working and what’s not that it can become easy to lose sight of what’s most important.  When you can present marketing metrics that resonate with your decision makers, you’ll be in a much better position to make the case for budgets and strategies that will benefit your marketing team now and in the future. 

marketing metrics








Tags: marketing metric

Share this entry

You might also like