Know Your Marketing Percentage of Customer Acquisition Cost
Marketers Must Measure
As a marketer, you 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 impact doesn’t mean you should no longer pay attention to site traffic, social shares, and conversion rates. It simply means that when reporting your results to your executives, it’s crucial to convey your performance in a way that your C-suite can get excited about.
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In a previous post, we covered the need to measure the Customer Acquisition Cost (CAC). Let’s take the next step and look at measuring the Marketing Percentage of Customer Acquisition Cost.
Know Your Marketing Percentage of Customer Acquisition Cost
What It Is: The Marketing % of Customer Acquisition Cost is the marketing portion of your total CAC, calculated as a percentage of the overall CAC.
How to Calculate It: Take all of your marketing costs, and divide by the total sales and marketing costs you used to compute CAC.
What This Means and Why It Matters: The M%-CAC can show you how your marketing teams performance and spending impact your overall Customer Acquisition cost. An increase in M%-CAC can mean a number of things:
1. Your sales team could have underperformed (and consequently received) lower commissions and/or bonuses.
2. Your marketing team is spending too much or has too much overhead.
3. You are in an investment phase, spending more on marketing to provide more high quality leads and improve your sales productivity.
The Marketing Percentage of Customer Acquisition Cost is just one of 6 free marketing metrics we offer you in our brief eBook. Why not start impressing the boss today? Just click the link below to get your free eBook.
