Six metrics every marketer needs to measure
One of the top priorities for any CMO or marketing leader is justifying the marketing budget. Although it’s easy to obsess over campaign metrics like click-throughs and page views, those stats don’t tell the real story of your marketing efforts.
Marketing teams need to shift their focus to metrics that are better indicators of marketing’s contribution. The good news is it’s relatively easy to track and report on a handful of key numbers that resonate with company leaders by showing how your efforts are affecting the bottom line.
One must-have metric that speaks loudly and carries a big stick is Customer Acquisition Cost (CAC). Put simply, it measures how much it costs your company to bring in a new customer.
Why is that important? As a marketer, you can use it to reveal the effectiveness of your marketing dollars over time. If you see an increase in CAC, it means you’re spending comparatively more to win new customers. If you can reduce CAC by optimizing your marketing efforts, your profit margin will improve and the company will make more money.
You can see how CAC begins to show a bigger picture of marketing’s contribution by attracting new customers and ultimately revenue. But how do you calculate it? And what other metrics can you track to dazzle your company’s leaders?
