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The Importance of Metrics in
Marketing
Rahul Thomas Mathew
Product Marketing Manager@ Jifflenow
What other departments think about Marketing
Marketing reactions to
ROI or Profitability
So why can’t
Marketing afford to
ignore Metrics?
Metrics is the fuel that
will power your
marketing
What are the important
metrics to measure in
your Marketing
Organization
Goal Setting & Progress Tracking
Leads	waterfall Traffic	Waterfall
Average	Lead	Close	Rate
Channel Effectiveness
Month	to	Date	Goal	
per	Channel
Paid	v/s	Organic	Lead	%
Close	Rate	per	
Channel
Content Effectiveness
Traffic	driving	keywords
Leads	generated	per	
offer
CTA	Click	through	
Rate
Marketing Qualified Leads
Total	MQLs	per	month
MQLs	converting	to	
Opportunities
MQLs	per	channel
Metrics will help you plug the leaks in your
sales funnel
Monitoring these 5 areas for potential red flags will ensure that
you keep an eye out for any leaks in the sales funnel
• The rate of leads to closed deals
• The rate of opportunities to closed deals
• Pipeline coverage is too low for your sales team to meet
quota
• Amount of stalled opportunities
• Amount of leads that haven’t been followed up on
Marketing Metrics that matter to your CEO
1. Customer Acquisition Cost
(CAC)
2. Marketing as a % of CAC
3. Ratio of CLV to CAC
4. Time to payback CAC
5. Marketing Originated
Customer %
6. Marketing Influenced
Customer %
Customer Acquisition Cost
How to Compute this Implications for Marketing
All sales & marketing
costs in a period/ Total
number of new
customers in that period
An increase means
Marketing/Sales spend
might not be efficient
Marketing as a % of Customer Acquisition Cost
Total Marketing costs/
Total marketing and
Sales cost used to
calculate CAC
An increase can mean 2 things
1. Marketing spend was not
efficient enough
2. Your Marketing model is
one where Marketing is
doing a big chunk of the
work to bring customers
How to Compute this Implications for Marketing
Ratio of Customer Life Time Value to Customer
Acquisition Cost
How to Compute this Implications for Marketing
A high ratio means you have a
higher ROI on Sales &
Marketing
Total annual payments from a
customer/(churn rate*CAC)
Time to payback CAC
How to Compute this Implications for Marketing
A higher payback means that
you take longer to earn back
the CAC
CAC/how many customers pay
you on average each month
Marketing Originated Customer %
How to Compute this Implications for Marketing
A higher percentage means
marketing is responsible for
driving a lot of the new
customers and sales isn’t as
effective
Percentage of all new
customers that came from a
lead that marketing generated
Marketing Influenced Customer %
How to Compute this Implications for Marketing
An increase in this % means
that Marketing is helping
influence more buying decision
making
Percentage of all new
customers for a specific period
who had any interaction with a
marketing activity
Summary
Metrics will
v Ensure that you have access to unlimited marketing
budgets
v Bring efficiency and order to Marketing
v Showcase ROI and profitability from Marketing
campaigns and efforts
v Increase sales productivity
v Help marketing have a direct impact on customer
conversion
Thank you
Rahul Thomas Mathew
Product Marketing Manager@ Jifflenow

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Importance of metrics in marketing

  • 1. The Importance of Metrics in Marketing Rahul Thomas Mathew Product Marketing Manager@ Jifflenow
  • 2. What other departments think about Marketing
  • 3. Marketing reactions to ROI or Profitability
  • 4. So why can’t Marketing afford to ignore Metrics?
  • 5. Metrics is the fuel that will power your marketing
  • 6. What are the important metrics to measure in your Marketing Organization
  • 7. Goal Setting & Progress Tracking Leads waterfall Traffic Waterfall Average Lead Close Rate
  • 11. Metrics will help you plug the leaks in your sales funnel Monitoring these 5 areas for potential red flags will ensure that you keep an eye out for any leaks in the sales funnel • The rate of leads to closed deals • The rate of opportunities to closed deals • Pipeline coverage is too low for your sales team to meet quota • Amount of stalled opportunities • Amount of leads that haven’t been followed up on
  • 12. Marketing Metrics that matter to your CEO 1. Customer Acquisition Cost (CAC) 2. Marketing as a % of CAC 3. Ratio of CLV to CAC 4. Time to payback CAC 5. Marketing Originated Customer % 6. Marketing Influenced Customer %
  • 13. Customer Acquisition Cost How to Compute this Implications for Marketing All sales & marketing costs in a period/ Total number of new customers in that period An increase means Marketing/Sales spend might not be efficient
  • 14. Marketing as a % of Customer Acquisition Cost Total Marketing costs/ Total marketing and Sales cost used to calculate CAC An increase can mean 2 things 1. Marketing spend was not efficient enough 2. Your Marketing model is one where Marketing is doing a big chunk of the work to bring customers How to Compute this Implications for Marketing
  • 15. Ratio of Customer Life Time Value to Customer Acquisition Cost How to Compute this Implications for Marketing A high ratio means you have a higher ROI on Sales & Marketing Total annual payments from a customer/(churn rate*CAC)
  • 16. Time to payback CAC How to Compute this Implications for Marketing A higher payback means that you take longer to earn back the CAC CAC/how many customers pay you on average each month
  • 17. Marketing Originated Customer % How to Compute this Implications for Marketing A higher percentage means marketing is responsible for driving a lot of the new customers and sales isn’t as effective Percentage of all new customers that came from a lead that marketing generated
  • 18. Marketing Influenced Customer % How to Compute this Implications for Marketing An increase in this % means that Marketing is helping influence more buying decision making Percentage of all new customers for a specific period who had any interaction with a marketing activity
  • 19. Summary Metrics will v Ensure that you have access to unlimited marketing budgets v Bring efficiency and order to Marketing v Showcase ROI and profitability from Marketing campaigns and efforts v Increase sales productivity v Help marketing have a direct impact on customer conversion
  • 20. Thank you Rahul Thomas Mathew Product Marketing Manager@ Jifflenow