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Making marketing analytics sexy and knowing how well you're performing

Meika Birch-Davis

Marketing used to just be about clever headlines and creative designs – then we entered the digital age.


An age where the performance of your marketing could now actually be measured and displayed in colourful graphs, reports and stats. Marketing analytics CAN be really exciting – especially when those results show that you are on the right track to growing your online presence. When you can present back to your managers and key stakeholders the exact cost and time taken for each lead, conversion and sale, where your resources have or haven't been well invested and if your content does or doesn’t resonate with your target market anymore – that is powerful stuff.

In today’s connected world, as marketers we are responsible for generating leads to the business and when we can account for this accurately, it makes our job worthwhile. When it comes to marketing metrics that matter to your executives, expect to report on data that deals with the total cost of your marketing activities including salaries, overheads, revenue and customer acquisitions.

With good real-time analytic tools your website will have the ability to measure your online presence effectively through activities like, the number of visitors to your website, which pages they chose to visit and how long they stayed there. But as truly competent marketers we need to go much deeper and explore this a little more.

So where can we begin?

Cost per customer or CAC (Customer Acquisition Cost)

This is the metric used to determine the total average cost your company spends to acquire a new customer. You calculate this by taking your total sales and marketing spend (advertising/marketing spend + salaries + commissions + bonuses + overheads) for a specific time period and then dividing it by the number of new customers for that period.

If we put this into real figures and it may look like this…

Sales and marketing cost = $300,000
New customers in a month = 30
CAC is then $300,000 divided by 30 = $10,000 per customer

Time to payback the CAC

As we know the value of the customer is not just in the first order – it’s the lifetime value that customer brings to your business. So if the customer has cost you $10,000 to acquire when can you expect to recoup this investment?

So how exactly is that done? Glad you asked. You calculate the time it will take to payback by taking your CAC and dividing it by your ‘margin adjusted revenue’ or MAR. MAR is how much your customers pay on average per month. In real figures it may look like this…

CAC = $10,000 to acquire the customer
MAR = $1,000 in expected revenue per month

CAC divided by MAR = Time to payback the CAC
$10,000 divided by $1,000 = 10 months to payback the CAC

So when you onboard a new customer in this scenario you should be planning a year long strategy for them to retain them for at least 10 months.

As marketers, we track so many different data points to better understand what’s working and what’s not that it can become easy to lose sight of what’s most important. Reporting on your business performance doesn’t just mean focusing on site traffic, social shares and conversion rates. It’s crucial to convey your performance in a way that your C-suite can get excited about.

Rather than talking about per-post Facebook engagement and other soft metrics, use the strategies above so that they resonate better with your decision makers. 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. Adopting a marketing automation platform like HubSpot can also assist you greatly to manage and measure all of your marketing activities in the one ‘spot’.

You may not think all of this is sexy, but your top-line executives certainly will.

Get in touch with us to find out how you can start measuring your analytics effectively.


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