Reporting On Customer Acquisition Cost

In his latest Ebook download, “The 6 Marketing Metrics Your Boss Actually Cares About”, inbound marketing expert and SugarBush President Mark Parent outlines the six key pieces of information every decision-maker wants to know from their marketing firm.

Two of the six metrics center on Customer Acquisition – namely, Customer Acquisition Cost and Marketing % of Customer Acquisition Cost. Here’s a preview:

Customer Acquisition Cost – What It Means and Why It Matters

CAC is a metric that illustrates how much your company is spending per new customer acquired. Your boss wants to see a low average CAC. An increase in CAC means that you are spending comparatively more for each new customer, which can indicate to your boss that your sales or marketing efficiency is off.

How to Calculate CAC: Take your total sales and marketing spend for a specific time period (program and advertising spend + salaries + commissions and bonuses + overhead in a month, quarter or year) and divide that by the number of new customers for that same time period.

Marketing Percentage of CAC – What It Means and Why It Matters

The Marketing Percentage of Customer Acquisition Cost – or the M%-CAC – can reveal how your marketing team’s performance and spending impact your overall CAC.

How to Calculate M%-CAC: Take all of your marketing costs for a specific time period (expenses + salaries + commissions and bonuses + overhead for the marketing department only) and divide that number by the total sales and marketing costs you used to compute CAC (program and advertising spend + salaries + commissions and bonuses + overhead in a month, quarter or year).

If your M%-CAC goes up, it could mean:

• Your sales team could have underperformed and gotten lower commissions and/or bonuses.
• Your marketing team is spending too much or has too much overhead.
• You are in an investment phase, spending more on marketing to provide more high quality leads and improve your sales productivity.

Reporting Metrics To Reveal Your Worth

In “The 6 Marketing Metrics Your Boss Actually Cares About”, inbound marketing expert Mark Parent illustrates how to turn the information we as marketers already have at our disposal and helps us translate these facts into metrics that speak directly to the decision-makers we so desperately need to impress.

By helping us to speak their language – a language of hard facts, costs and direct bottom-line impact – this Ebook pulls us away from the laundry list of metrics we are working tirelessly to move the needle on and helps us present all of the things we measure in a much more simplified way. Embedded within these six metrics is everything from web visits and conversion rates to leads per channel and social media engagement – only it’s all distilled into reporting that points to how your marketing program led to new customers, lower acquisition costs and higher customer lifetime values.

Prove your worth to your boss – identify potential problems that could raise a red flag with your boss BEFORE it’s too late – check out “The 6 Marketing Metrics Your Boss Actually Cares About” today.