Marketing Metrics Your Boss Will Actually Care About

Confession time. Marketers love metrics. We just love them. They’re the outer space ooze that gives us our superpowers. They’re the tarot cards to our Miss Cleo. You get the idea.

But, we understand that not everybody gets as into number crunchy data analytics as we do. Shares, conversions, engagement rates – to some people, it can seem like just a bunch of meaningless numbers. It can be hard to see the connections, and how something like email click-through translates to dollars and cents. And if you’re in the position of trying to convince a client or boss that these numbers matter, well, that can be an uphill battle.

So, here are a few marketing metrics your boss will actually care about. These are the ones that translate to dollars and cents, and should hopefully be easy for anyone to wrap their heads around.

Customer Acquisition Cost (CAC)

CAC is just what it sounds like – the amount of money your company is spending, on average, to acquire new customers. You can calculate this for any time period you want (month, quarter, year, etc). Just add up everything being spent on sales and marketing (advertising, salaries, overhead, bonuses – everything), and divide that by the number of new customers from that same period of time. You generally want this number to be low. After all, even if you start spending more, the idea is for that increase in spending to result in additional customers, so the ratio shouldn’t change that much. An increase in efficiency might even see it go down.

Time to Payback CAC

Once you know your CAC, there’s all kinds of interesting things you can figure out with that number. One of the handiest is the amount of time it takes for each customer to essentially pay for themselves. Just take the amount of money your customers pay on average each month, divide by the CAC, and that will let you know when the cost of acquiring customers starts turning into profit.

Marketing Originated Customer %

This is where you get to take some of your other metrics and apply them. In a given period, figure out what percentage of new customers came from a lead generated by your marketing efforts. Divide that number by the total number of new customers in the same period, and you’ll be able to show what percentage of new customers came directly as a result of marketing efforts.

For more marketing metrics your boss will actually appreciate, and how to calculate them, download our ebook here.