The plan focuses on refining marketing management performance through specific metrics that help understand and optimize the efficiency of marketing efforts. Metrics like Customer Acquisition Cost (CAC) provide insight into the cost-effectiveness of marketing strategies, essential for budget optimization. For example, improving targeting to attract high-value customers can lower CAC.
Customer Lifetime Value (CLV) reveals potential long-term revenue from customers, highlighting the importance of loyalty programs and personalized experiences. For instance, upselling and cross-selling to existing customers can significantly increase CLV.
Similarly, conversion rate and return on marketing investment (ROMI) measure the effectiveness of campaigns, underscoring strategies like A/B testing and targeting high-intent keywords. Social media engagement rate helps assess how well content connects with audiences, providing direction for improved content strategies.
Top 5 metrics for Marketing Management Performance
1. Customer Acquisition Cost (CAC)
The cost associated with acquiring a new customer, calculated by dividing all marketing expenses by the number of new customers acquired.
What good looks like for this metric: Typically between $200-$300 for B2C and $500-$1,000 for B2B
How to improve this metric:- Optimise marketing channels for cost efficiency
- Improve targeting to attract high-value customers
- Enhance marketing automation to reduce manual efforts
- Utilise A/B testing to refine strategies
- Negotiate better deals with marketing vendors
2. Customer Lifetime Value (CLV)
Predicted revenue that a customer will generate over their lifetime, calculated by multiplying the average purchase value by purchase frequency and average customer lifespan.
What good looks like for this metric: Benchmarks vary by industry, but CLV should ideally be 3 times CAC
How to improve this metric:- Develop loyalty programmes to increase retention
- Upsell and cross-sell to existing customers
- Enhance customer support for better satisfaction
- Personalise customer experiences to boost engagement
- Collect feedback to address pain points
3. Conversion Rate
The percentage of website visitors who take a desired action, calculated by dividing the number of conversions by the total visitors and multiplying by 100.
What good looks like for this metric: 2% to 5% is considered average across industries
How to improve this metric:- Optimise landing pages for clarity and actionability
- Use clear calls-to-action (CTAs)
- A/B test web page elements
- Enhance website speed and usability
- Target high-intent keywords in PPC and SEO strategies
4. Return on Marketing Investment (ROMI)
Measures the effectiveness of marketing campaigns by comparing the revenue generated to the cost of the campaign.
What good looks like for this metric: A ROMI above 5:1 is desirable
How to improve this metric:- Set clear campaign objectives and KPIs
- Refine audience targeting to improve precision
- Leverage data analytics for informed decision making
- Focus on high-ROI channels and content
- Conduct post-campaign analysis to measure outcomes
5. Social Media Engagement Rate
Measures the level of interaction on social media posts, typically calculated by dividing total engagement (likes, comments, shares) by total followers, then multiplying by 100.
What good looks like for this metric: 1% to 5% engagement rate is average depending on platform
How to improve this metric:- Create content that resonates with the audience
- Engage with followers consistently
- Use interactive content like polls and Q&A sessions
- Collaborate with influencers to expand reach
- Analyse engagement metrics to refine content strategy
How to track Marketing Management Performance metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
