Article

Vera Fischer
Vera Fischer 12 April 2016
Categories

6 Key Metrics That Improve Marketing Performance

Many marketing efforts spread far and wide, with marketing departments and firms measuring a countless list of metrics such as website visits, social media engagement, and conversion rates. Instead of overwhelming your CEO, CFO and other top management officials with all that information, use the six key metrics revealed in our e-book called "Marketing Essentials Your Boss (really) Cares About." Here is a quick look at just three of them for a taster.

Consumer acquisition cost (CAC) is how much a business spends to get a new customer. Knowing the value of CAC is critical for determining the efficiency of sales and marketing efforts. You can easily calculate it using a simple formula.

Another key metric is the time to payback CAC, which is exactly what it sounds like — the time it takes a business to earn the money it spent acquiring a new customer. Best practices usually dictate that the time to pay back CAC be less than a year. This number conveys how effective the business is at making new customers profitable.

A third key metric is the marketing influenced customer percentage. This measure looks at when marketing efforts interacted with leads (who are now customers) when they were in the sales process. The resulting percentage tells you how many new customers are due to marketing efforts, and how successful marketing staff and marketing campaigns are. Thus, you get a good idea of the role that marketing plays in customer acquisition at your company.

Using hard data to evaluate marketing performance is more effective than using soft marketing metrics such as how many comments, shares and likes your company's Facebook posts are getting. Soft information doesn't resonate enough with executives and, more importantly, isn't data they use when considering the bottom line. Upper-level management officials want to focus on big-picture issues, and you can use the six key metrics to engage management and to get them excited about the marketing work you're doing.

Download our e-Book now to discover the six key metrics that will help you improve your marketing credibility.

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
Digital Marketing Vs. Traditional Marketing: Which One Is Better?

Digital Marketing Vs. Traditional Marketing: Which One Is Better?

What's the difference between digital marketing and traditional marketing, and why does it matter? The answers may surprise you.

Julie Cave
Julie Cave 14 July 2016
Read more
4 Important Digital Marketing Channels You Should Know About

4 Important Digital Marketing Channels You Should Know About

It goes without saying that a company can't do without digital marketing in today's world.

Digital Doughnut Contributor
Digital Doughnut Contributor 5 November 2014
Read more
The New '4Ps of Marketing'

The New '4Ps of Marketing'

Neil H. Borden, in 1964, gifted the world with the 4Ps of the Marketing Mix: Product, Price, Place and Promotion. This concept has been a cornerstone of business marketing. However, there are new 4Ps of Marketing – just as powerful and just as game changing as Neil Borden’s.

Daisy Kent
Daisy Kent 18 May 2017
Read more
A Complete Guide To Help Sales and Marketing Work On The Same Team

A Complete Guide To Help Sales and Marketing Work On The Same Team

''Companies with dynamic, adaptable sales and marketing processes report an average 10% more of their salespeople meet their quotas compared to other companies.'' - CSO Insight

Michael FitzGerald
Michael FitzGerald 19 May 2017
Read more
8 Marketing Automation Mistakes And How To Avoid Them

8 Marketing Automation Mistakes And How To Avoid Them

According to the Annuitas group, businesses that use marketing automation to nurture prospects experience as much as a 451% increase in qualified leads. But is every company using marketing automation efficiently and effectively?

Richard Fallah
Richard Fallah 23 May 2017
Read more