I want to be a Marketing hero!

I want to be a Marketing HeroWe want YOU to be the marketing hero, too! And that starts with marketing metrics your boss actually cares about. As marketers, we grind away, working feverishly on our marketing campaign, creating concepts from scratch, supporting organizational objectives that will result in new leads or sales. And then we launch, and what do we have to show for it….a landing page with a simple form. (Insert chirping crickets sound) No one knows or cares where you are advertising this landing page, the hours spent on creative, or the back and forth getting approval on a single line of copy.

As your google adwords campaign spend increases, you make the conscious effort to stop measuring ROI since the leads from the landing page are not coming in as fast as you would like.

When the time comes to present the impact of your marketing efforts to your boss, you pull out of your bag of magical tricks – leads per channel, visits/page, social media engagement, email click-thru rates, etc.

Ask yourself, is your boss really going to be interested in hearing your Facebook post engagement metrics or if retweets are up? Likely not.

While many bosses theoretically understand that a solid marketing team can directly impact your company’s bottom line, 73% of executives don’t believe that marketing drives demand and revenue.
Source: The Fournaise Marketing Group

Do you want to show marketing’s value and worth? Are you ready to become a marketing hero? When it comes to marketing metrics that matter most to your executives, prepare to report on data that deals with the total cost of marketing and customer acquisitions. I promise, you won’t even mention that overused/abused term, ROI.

Below, I have outlined two of the six metrics that cover the critical measurements of marketing. For metrics 3, 4, 5, and 6, please contact me directly.

1) Customer Acquisition Cost (CAC)
Defined:
CAC is the total average cost for a company to acquire a new customer. I know you are dying to measure the number of leads your campaign created. Isn’t it worth reporting, you ask? No, and if you still disagree, walk down the hall to the sales team and ask what they thought of the last batch of leads that came to them from the website, The answer will be…..’enlightening’.

Formula:

CAC = Sales and Marketing costs (programs, salaries, bonuses, etc) / New Customers

Summary:

This metric is used to indicate whether your department is working effectively. An increase in CAC means that you are now spending comparatively more for each new customer.

2. Marketing % of Custumer Acquisition Cost (M%)

Defined:
M% is calculated by taking all of your Marketing costs divided by the Total of Sales costs and Marketing costs.

Formula:
M% = Marketing Costs / Sales Costs and Marketing Costs *
(Cost totals attributed to programs, expenses, salaries, commission etc)

Summary:
This metric shows how your marketing team’s performance and spending contributes to the overall CAC. If this number goes up over a period of time, this can be to a few different reasons. Your sales team could be under performing or your marketing team is spending too much or costs are too high. A further analysis may reveal it is a combination of both.

The Bottom Line

Reporting these numbers on your marketing department’s impact doesn’t mean abandoning those traditional marketing metrics that you love – site traffic, leads tracking, and conversion rates. However, when it comes to reporting to your CFO or CEO, it’s better to focus on the numbers that illustrate the value that your marketing brings and how it affects your company’s bottom line.

By presenting marketing metrics that resonate with your decision-makers, you position yourself as a peer, and are better able to make the case for budgets and push strategies that will benefit your marketing team as a whole. You will be well under away to becoming a marketing hero.

For metrics 3, 4, 5, and 6, please contact me directly.

About Michael Senger

Michael Senger is an energetic, results-oriented Senior Marketing Professional with almost 15 years experience in strategic online marketing. Before joining Hidden Peak Interactive, Michael successfully led the launch of StoneMass, a web marketing agency. Michael also spent 8 years at Symantec, directing their Global Online Marketing initiatives leading a diverse global team of matrixed team leaders and digital/online agencies leading to successful global results.

Michael has a MBA in Marketing Information Technology from the University of British Columbia in Canada.

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