5 Marketing Metrics You Must Measure Today

Coming up, I will provide you  with the key marketing metrics  
that every leadership team  cares about. Let's get started.
If you're new here my name is Matthew Royse  I am a Knowledge Enthusiast I love working  
with digital marketers like you and to share my  knowledge of digital marketing on this channel I  
provide you with weekly tips on how you can grow  your digital marketing career the C-suite gets  
frustrated when only metrics they receive from  marketing are ambiguous brand data and engagement  
reports in other words vanity metrics marketing  metrics that don't translate into meaningful  
business results can't guide decision making about  how marketing impacts your company's strategy  
senior leaders want metrics that are tied directly  to revenue according to a recent demand gen report  
40% of marketers believe their ability to  measure and analyze the impact of marketing  
needs improvement what marketing metrics matter  to your chief executive officer chief financial  
officer and other C-suite executives let's dive in  into five of them number one return on marketing  
investment or ROMI marketers are under pressure  to show others a return on their activities romi  
is like other return on investment calculations  it helps you determine how much you are spending  
on marketing compared to how much revenue your  company is producing it is a metric to measure the  
effectiveness of individual marketing campaigns  it helps determine if marketing is contributing  
to a company's profits romi can help justify the  funding of a marketing department the key benefits  
of this metric is that you can assess historical  and projected marketing productivity determine if  
marketing budgets should grow stay flat or shrink  and allocate limited marketing funds to the right  
mix of marketing channels number two marketing  originated customer percentage this metric shows  
what portion of the overall customer acquisition  process originated in the marketing department  
this number varies widely from company to company  based on marketing inside sales and field sales  
team alignment when the inside sales team is  supported with lead generation from marketing  
this number is higher to accurately measure  this metric it's essential to have a closed-loop  
marketing system where field sales and inside  sales report to marketing on what happens to  
the leads so marketing can understand the best and  worst lead sources the key benefits of this metric  
is that it shows how much the business grew  because of marketing encourages tight alignment  
between marketing inside sales and field sales  teams and demonstrates how much marketing  
originated versus other departments number three  marketing influence customer percentage this  
metric is similar to marketing originated but  discusses the influence of marketing for B2B  
or business to business companies with longer  sales cycles than B2C or business to consumer  
companies this shows how marketing nurtured  new customers during the sales process this  
metric indicates that sales team needs nurturing  as much as origination this metric is good because  
sometimes marketing doesn't always touch the new  customer through the sales process for example a  
sales person could talk to someone at a marketing  event and then later the person becomes a customer  
because of the influence of marketing the key  benefits of this metric are that it shows how many  
leads were influenced by marketing if you can't  determine through tracking if a new customer was  
originated by marketing influence is the next best  thing number four lifetime value of a customer ltv  
this metric takes more work to connect the  dots it shows how much a customer will spend  
on your products and services throughout their  lifetime this metric helps you figure out how  
much it costs to acquire new customers and retain  current customers every customer is precious but  
some customers are more precious than others  research shows that repeat customers spend more  
than new customers so it's vital to have a metric  that shows the value of loyal customers research  
also indicates attracting a new customer costs  five times more than keeping existing customers  
this metric shows how well customers respond to  your brand's messaging how much they prefer your  
products and services the key benefits of this  metric is that it encourages your company to value  
branding and customer loyalty number five customer  acquisition cost or cac this metric brings sales  
and marketing together it adds up all marketing  and sales costs including salaries commissions and  
bonuses over time you can't acquire customers for  free so this metric calculates the cost associated  
with convincing a potential customer to buy your  products and services cac is the total marketing  
and sales cost spent on acquiring a new customer  this metrics helps determine if your company is  
generating enough income to cover the cost  of running a company if your company's cac  
is too high leadership can examine its possible  business model culture and possible disconnect  
from knowing what its customers want the key  benefits of this metric is that it calculates  
how much money is needed to acquire a new customer  provides information on cash flow and measures how  
well marketing campaigns and strategies are  performing okay let's bring it all together  
first if you like what you saw here please hit  the subscribe button below every company is  
looking for a return on investment and wants to  see how marketing is helping the business grow  
there are five metrics to help you earn  credibility with senior leaders at your company  
they are return on marketing investment marketing  originated customer percentage marketing influence  
customer percentage lifetime value of a customer  and customer acquisition cost when you know what  
metrics to focus on you can better execute track  and analyze marketing performance you can have  
confidence that you are focused on numbers that  your leadership team really cares about when you  
show metrics like this senior leaders will look  more favorably towards marketing and have faith  
that marketing has helped the company generate  revenue thank you for watching until next time.