Five Marketing Metrics to Master

Just like you go to the doctor for your annual physical, your marketing plan requires consistent check-ups to ensure that it’s healthy and running like smoothly. Regular testing is one way to ensure that all of your tools and systems are working properly, but another great way to gauge the health of your marketing is by consulting the analytics. Analytics are pulled based on certain metrics set at the outset of a campaign. Analytics can tell you all sorts of interesting information about your campaign, such as cost per lead and cost per page view, but the metrics that the powers-that-be (the CEOs and COOs of the world) actually care about all deal with the bottom line, or metrics that look at the total cost of marketing and compare that to campaign outcomes (revenue and customer acquisition). Simply put, these metrics help determine (from a financial standpoint) if the marketing plan in place is worth the time and monetary investment required to keep it running. Here are the top five marketing metrics your boss actually cares about:

Search Engine Rank Based on a Campaign

Ranking well in search engines takes time, so this may be a hard metric to pull at a moment’s notice, especially if the campaign is still new. However, this is a great way to show that the campaign you are running is working well (if your keywords are ranked highly). Be sure to check on the rank of your most important keywords at the end of each month to gauge if your campaign effectively affected your SEO.

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Customer Acquisition Cost

The Customer Acquisition Cost (CAC) metric basically tells you how much you spent to acquire each new customer. To get this figure, you take your total cost for sales and marketing and divide it by the number of new customers acquired in a given period of time (monthly, quarterly, annually, etc.). Generally you want this number to be low (more customers for less money means a higher ROI).

CAC Return

The CAC Return is the amount of time (weeks, months, years, etc.) it takes to recoup your CAC dollars within a campaign. To get this figure, you take the CAC and divide by margin-adjusted revenue per month (or weeks or years) for the average newly-acquired customer. Again, you generally want this number to be low, as the lower the number the faster you are recouping your losses.

Marketing-Generated Customer Percentage

This metric tells you how many newly-acquired customers can be attributed to your marketing efforts. To get this figure, add up the total number of new customers brought in through a marketing-generated pipeline or lead during a given time period. Divide this number by the total number of new customers from the same time period.

Marketing-Influenced Customer Percentage

This figure is determined the same way that Marketing-Generated Customer Percentage is except that it also takes into account any newly-acquired customers that were influenced by marketing during their buyer journey but may not have been generated through a marketing effort. For instance, if a salesperson qualifies a lead but doesn’t close it, then that lead receives marketing materials that push the lead toward eventually closing, this new customer would be considered a “marketing-influenced customer.”

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William Flanagan

CEO & Founder, Audienti. Former VP-Cognio, Founder-sentitO/Verso, SALIX/Tellabs, PrimaryAccess/3Com, CompuServe. Expert in data-driven marketing.

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