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Five marketing metrics CEO is concerned about

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Those days of CMO are gone who was fluent in metrics, spreadsheets, and analytics. Internet has made marketing more appreciable and accountable to CEO and CFO than before. But still it is frequently heard from CMO that they are struggling to find the right metrics to get them credibility with CEO and CFO.
According to some the best marketing metrics look at the total cost of marketing. Some metrics like cost per lead, cost per page, or cost per follower view can be useful to look within the marketing team, because they help in making decisions about where to focus. Mostly CEOs don’t really care about the cost and net results.
So here are some metrics CEO should really care about.
1. CAC-Customer acquisition cost
It is the total sales and marketing cost- adding up of all the program or advertising spend, plus the earned income, plus bonuses and commissions, plus overhead- in a time period, divided by number of new customers in that time period. The time duration mentioned here can be a month, 3 months, or a year.

2. M-CAC-Marketing percentage of customer acquisition cost
To compute the marketing portion of CAC, we can call it M-CAC. Then it can be computed as a overall CAC. Any change in marketing percentage of CAC, points out that something has changed in either effectiveness or strategy.
For instance, increase either means that the CEO is spending too much on marketing or sales cost are lowered because they’ve missed quota, or it also means that they are spending more on marketing and providing more and higher quality leads to sales.

3. LTV:CAC- Ratio of customer lifetime value to CAC
The companies that have repeating revenue stream, CEO need to estimate the current value of customer and compare what has been spent to acquire that new customer.
LTV can be computed by taking the revenue that the customer pays in a period, subtracting the gross margin, and then dividing it by estimated churn percentage for that customer.

4. Payback CAC
It is the number of moths it takes the CEO earn back the CAC they’ve spent to get a new customer. Take CAC and divide it by margin adjusted revenue per month for the average new customer. The resulting month is the number of months to payback.

5. Marketing influenced customer percentage
It adds up all the new customers where marketing touched and nurtured the lead at any point during the sales process.

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