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The Six Marketing Metrics Your CEO Actually Cares About
Mike Volpe / Hubspot
Gone are the days of the CMO who is not fluent in metrics, analytics and spreadsheets. The internet has made marketing far more measurable (and therefore more accountable to the CEO and CFO) than ever before. Yet many CMOs say that they are struggling to find the right metrics that will get them credibility with the CEO and CFO, and show the real contribution of marketing to the bottom line.
The best marketing metrics look at the total cost of marketing, including program spend, salaries of the team, and overhead, and relate that cost to the results you care about — revenue and customer acquisition. Other metrics like cost per lead, cost per follower, or cost per page view can be useful to look at within a marketing team, because they can help you make decisions about where to focus and what parts of your marketing process are broken; but most CEOs really just care about the cost and the net results, not the interim steps. This list of metrics is meant to focus on the most critical measures of marketing that your CEO will likely want to discuss with you.
1) Customer Acquisition Cost (CAC)
2) Marketing % of Customer Acquisition Cost (M%-CAC)
3) Ratio of Customer Lifetime Value to CAC (LTV:CAC)
4) Time to Payback CAC
5) Marketing Originated Customer %
6) Marketing Influenced Customer %