6 Key Marketing Metrics You Need To Know

1. Customer Acquisition Cost (CAC)

• Sales and Marketing Cost/New Customers• Sales and Marketing = Ad and program spend,

salaries, bonuses and overheads• You want to have a low CAC• If it increases then theres a problem with

sales/marketing efficiency

• [S+M]/NC

2. Marketing % of CAC

• Marketing Cost/Sales + Marketing Cost• Marketing Cost = Expenses, salaries, bonuses

and overheads

• MC/[S+M]

3. Ratio of Customer Lifetime Value to CAC

• Lifetime Value:CAC• Lifetime Value = [Revenue – Gross Margin]/Churn

Rate• Churn Rate = 25% is a life of 4 years• Value from each existing customer compared to

acquiring a new customer• Higher the ratio the better the more ROI

• LTV:CAC

4. Time To Payback CAC

• CAC/Margin Adjusted Revenue• MAR = Average pay of customer per month• Annual of monthly fee you want it be <12

months.• Les time means the sooner you can get money

off new customers

• CAC/MAR

5. Marketing originated Customer %

• New Customers as the result of a marketing lead/New customers in a month

• Shows what new business is driven by marketing.

• Shows the impact of marketing

• NCM/TNC

6. Marketing Influenced Customer %

• Total new customers that interacted with marketing/total new customers

• All new customers marketing interacted with while they were leads

• Indicates how effective marketing is at generating new leads

• TNCM/TNC