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Marketing Metrics Every Small Business Owner Needs To Understand

As a business owner, you work tirelessly to move the needle  on what often seems like a laundry list of metrics.  You look at website visits, conversion rates, generated leads per channel, engagement on social media platforms, blog post shares, email click-through rates… and the list goes on and on. When the time comes to evaluate the impact of your marketing efforts, you need to be able measure those efforts and determine their ROI.marketing metrics every business owner needs to understand Analytics That Profit

While many business owners understand that a solid marketing plan can directly impact your company’s bottom line, 73% of executives don’t believe that marketing is focused enough on results to truly drive incremental customer demand.

Here are the Marketing Metrics Every Business Owner Needs To Understand:

Customer Acquisition Cost

The Customer Acquisition Cost (CAC) is a metric used to determine the total average cost your company spends to acquire a new customer.

Marketing % of Customer Acquisitions Cost

The Marketing % of Customer Acquisition Cost is the marketing portion of your total CAC, calculated as a percentage of the overall CAC.

Ratio of Customer Lifetime Value to CAC

The Ratio of Customer Lifetime Value to CAC is a way for companies to estimate the total value that your company derives from each customer compared with what you spend to acquire that new customer.

Time to Payback CAC

The Time to Payback CAC shows you the number of months it takes for your company to earn back the CAC it spent acquiring new customers. 

Marketing Originated Customer %

The Marketing Originated Customer % is a ratio that shows what new business is driven by marketing, by determining which portion of your total customer acquisitions directly originated from marketing efforts.

Marketing Influenced Customer %

The Marketing Influenced Customer % takes into account all of the new customers that marketing interacted with while they were leads, anytime during the sales process.

These are the marketing metrics every business owner needs to understand.

We have prepared a FREE ebook that goes into detail on how to calculate these metrics and a bonus section on Google AdWords & Google Analytics.

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