Marketing "goals" and "objectives" will only get you so far (though if you need assistance with your marketing strategy, we can help). Instead, march into the C-suite with these five concrete marketing data points and show your boss how valuable you are!
A Customer Costs How Much?!?
How much does it cost your company to get one customer? Answering this question will give you a good idea if your marketing efforts are working.
To figure out your Customer Acquisition Cost (CAC) divide the following:
- Total sales and marketing costs (salaries, ad spending, overhead etc.) in a given period of time (month, quarter, year)
- BY the total number of new customers in the same period
The result indicates the average cost your company pays to acquire a new customer. Ideally, it should be on the lower end, which would mean you're bringing in many new customers. If the opposite is true, either your marketing efforts are not working or you're looking in the wrong places for customers.
Be The Driver, Not A Passenger
Show your boss how much the marketing department actually affects the recruitment of new customers.
- Divide your marketing department's customer acquisition spending in a given time period
- BY the company's overall spending on customer acquisition in the same period
The result is your Marketing % of the Customer Acquisition Cost. If this number is high, it can mean a few things, such as your sales team isn't pulling its weight and marketing has picked up the slack. Of course, it can also indicate the marketing department is underperforming or has too much overhead.
Make Money Off Your Customers in Three, Two, One...
Once you've got customers, you want to start making money off of them. You've already spent "X" amount of dollars wooing them. Now you need to figure how long it will take to recoup that cost, and then make more! This is the Time To Payback CAC. It is calculated as follows:
- Divide your CAC (as calculated above)
- BY your margin-adjusted revenue (how much customers pay you) per month/quarter/year
Say your company spent $5000 (your CAC) in order to bring a customer on board, while bringing in $2000/month. Using this formula, you get 2.5, or two and a half months before you are actually earning money from your new customer.
Justify Your Existence, Marketers
Because you're an ace marketer (right?) the Marketing Originated Customer % will prove your indispensability. This formula tells you how many new customers in a given time period signed on with your company due to your marketing efforts.
- Divide the number of new customers acquired due to marketing efforts in a given time period
- BY the total number of customers acquired by your company through all means during this time
The result, as a percentage, will tell you how persuasive your marketing efforts have been.
Do Your Fair Share
Like any good team member, you want to pull your weight. The Marketing Influenced Customer % will tell your boss whether you have or not. This metric gives your boss a good idea of how important marketing is to the entire process of wooing a customer. If this percentage is higher, then it indicates your department has a big impact in finding customers.
To find your MIC %,
- Divide the total number of new customers who engaged with marketing during the sales process in a given time period
- BY the total number of the company's new customers during the same period
Up Your Marketing Game
Whether you're trying to impress your boss or impress new customers, Awkward Media can help. We will help boost any aspect of your digital marketing efforts. Give us a shout at 647-849-1082!