Mastering Marketing Metrics That Matter
Posted By : Gil Aranowitz / Posted In : Digital Smarts

Mastering Marketing Metrics That Matter

As digital marketers we are inundated with data. With every interaction leaving a trail of numbers – every click, download, view, share, comment etc. – it is easy to get lost in this sea of information.

So what data really matters? We suggest starting with two fundamental data points –

  • The percentage of new customers influenced by your marketing;
  • The amount of money your company invests in marketing to acquire new customers.

How Influential is Your Marketing?

Marketing Originated Customer % shows what ratio of your new business is driven by marketing. To calculate this number take all new customers from a given period and tease out what percentage of them started as a marketing lead.

Formula: New customers as a marketing lead ÷ New customers in a month = Marketing Originated Customer %

Marketing Originated Customer % will illustrate the impact of your marketing team’s efforts on acquiring new customers.

How Much Do You Invest in Marketing to Acquire a New Customer?

Customer Acquisition Cost is a metric used to determine the total average cost your company spends to acquire a new customer. It is calculated by taking your sales and marketing spend over a given time period and dividing that number by the number of new customers acquired during that time period.

Formula: Sales and marketing cost ÷ New customers = Customer Acquisition Cost

Customer Acquisition Cost will illustrate how much your company is spending to acquire a new customer.

For more great tips on how to leverage the power of analytics to improve your marketing and advertising ROI check out How to Unlock Your ROI with Analytics


Want to find out more? Have questions?

Feel free to contact us, drop us an email at info@buddingculture.com or give us a call at 949.340.5746, and we will do our best to assess your marketing needs.

Skills

Posted on

July 22, 2013

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Posted On : July 22, 2013