As a CEO or business leader, you’re responsible for a lot. Leading your company and making sure everyone is set up for success requires a working knowledge of each area within your business. Because of this, it’s essential that you focus on the metrics and key performance indicators that are truly driving your business forward.
While there are hundreds of metrics that impact your company’s marketing performance, your primary concern should be ones that directly impact the bottom line.
3 Marketing Metrics Every CEO Should Know By Heart
If you want to keep a pulse on how your company is really doing when it comes to marketing, here are three metrics to keep top of mind:
- The Number of Customers Influenced or Generated by Marketing. Identifying the number of new customers that were either directly generated through marketing or influenced by your marketing activity gives you a high-level overview of your marketing effectiveness. Calculating the number of marketing-generated customers can be done by simply dividing your total number of new customers by the number of marketing-generated leads. Calculating influenced customers is a little more tricky, but it can be estimated by identifying all your new customers divided by the percentage of customers who had interaction with marketing material or activities during the sales cycle.
- Conversion Rate Through the Marketing and Sales Funnel. Being able to identify the conversion rate from an impression to a lead, a lead to a sales opportunity, and a sales opportunity to a customer is critical. Not only does it help you effectively evaluate your new business pipeline, but, more importantly, it helps you identify the strengths and weaknesses in the customer journey, so that you can constantly make strategic improvements.
- The Cost to Acquire a New Customer. Defining how much you spend to bring in a new customer is critical to measuring ROI and is a question that’s important to your board and stakeholders. By adding up all costs (both marketing and sales) and dividing it by the total number of new customers for the same period, you’re able to get a rough idea of how much it costs to acquire a new customer. If possible, breaking it down by specific activities (conferences, inbound marketing, advertising, etc.) is even better.
If you’re looking for a way to evaluate your marketing efforts, these metrics will give you a good start toward proving marketing ROI to your board or stakeholders.