When reviewing the impact of an organization’s marketing efforts on its bottom line, executives typically look at certain metrics that relate to cost, revenue, and customer acquisitions. For instance, company execs seek to know how each website visit, blog post share, or instance of social media engagement translates into actual revenue.
While metrics such as click-through rates, inbound links, and “owned” contact lists enable you to gauge your performance at the middle and topmost portions of the sales funnel, certain indicators matter more from an executive standpoint.
As an outsourced marketing strategist and HubSpot Certified Partner, Front Burner Marketing uses these six key performance indicators to establish the relationship between marketing and the bottom line:
(1) Ratio of Customer Lifetime Value to CAC
(2) Marketing Originated Customer %
(3) Marketing Influenced Customer %
(4) Customer Acquisition Cost (CAC)
(5) Marketing % of Customer Acquisition Cost, and
(6) Time to Payback CAC
Here’s a look at items 1 to 3.
Ratio of Customer Lifetime Value to Customer Acquisition Cost
In a nutshell, this ratio allows you to determine your return on investment (ROI) by comparing the amount your company spends in order to gain each new customer (CAC), and the Lifetime Value that each customer can bring in.
While you may want to keep LTV high, an extremely low CAC might mean that you aren’t spending enough to gain new customers and could, therefore, suffer a slowdown in growth.
Marketing Originated Customer %
This metric indicates the impact of lead generation efforts on customer acquisition. To determine the percentage of new customers acquired as a direct result of marketing efforts such as advertising and content production, use this formula:
A low percentage may indicate the need to find a HubSpot partner in Cleveland that can help you acquire a greater number of new customers through such methods as content creation, email marketing, social media marketing, and website development.
Marketing Influenced Customer %
Using this formula, you can measure the percentage of new leads who became your customers as a result of direct interaction with your marketing team.
If the percentage is low, then your marketing team needs to think of better ways to generate and nurture leads as well as help close more sales. A certified HubSpot partner in Akron, like Front Burner Marketing, can help turn things around by developing and executing quality inbound marketing strategies that help you generate more leads and influence customer buying habits.
The 6 Marketing Metrics Your Boss Actually Cares About, Front Burner Marketing
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