Karen Lozada
Download our Top 6 ROI Metrics to Prove your ROI

Getting your Team to Help You Prove Your Marketing ROI Can be Difficult

Many marketers think it’s enough to build a website, stuff it full of content, write a few social media posts, and sit back waiting for results. Unfortunately, that’s not how it works.

There’s a science to good marketing, and it requires a comprehensive understanding of marketing metrics to be successful. Marketers should know and understand these metrics before ever making promises to their stakeholders, and while a clean, fresh new website might be part of a good marketing plan, there’s far more to it than that.

In order to create and implement a comprehensive marketing plan capable of being able to prove your marketing ROI, marketing teams should work closely with the metrics and equations necessary to properly measure the impact of their efforts, and strategize for the future.

Marketers use the numbers to write the company’s story, with which they can engage consumers in the most lucrative ways possible. This begins with website content, then moves quickly into more complex metrics like conversion rates, generated leads per channel, social media metrics across multiple platforms, blog post shares, email click through rates, and a long list of other ROI influences.

Among the most important metrics marketers require is the data that deals with the total cost of marketing, salaries, overhead, revenue, and customer acquisitions.

There are six major metrics your team should know to prove your marketing ROI. Below are the first two. When you Download all 6 ROI Metrics you will find more information including specific formulas and examples to share with your Marketing Team.

#1 Customer Acquisition Cost (CAC)
The Customer Acquisition Cost (CAC) is a metric used to determine the average amount your company spends on acquiring a new customer.

Your CAC indicates the resources your company is spending per new customer acquired. For the sake of cost effectiveness, you want a CAC to be as low on average as possible. An increase in CAC means that you are spending comparatively more for each new customer, which can indicate a problem with your sales or marketing efficiency.
Prove Your Marketing ROI metric
#2 Marketing Percentage of Customer Acquisition Cost
The Marketing Percentage of Customer Acquisition Cost (M%-CAC) is the marketing portion of your total CAC, calculated as a percentage of the overall CAC itself.

The M%-CAC can show you how your marketing team’s performance and spending affect your overall customer acquisition cost. An increase in M%-CAC can indicate a number of things, including an underperforming sales team, who should consequently receive lower commissions and/or bonuses. Your marketing team could also be spending too much or has too much overhead. Or else, the company is in an investment phase and spending more on marketing to provide more high-quality leads and improve your sales productivity.

Prove Your Marketing ROI metric

When your team can present marketing metrics that resonate with you and your stakeholders, you’ll be in a much better position to make the case for budgets and strategies that will benefit your marketing team now and in the future.

Download our Top 6 ROI Metrics to Prove your ROI. You’ll find the specific formulas and equations you and your team will need to successfully measure the effectiveness of your marketing strategies.

ROI Metrics
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