11. Metrics will help you plug the leaks in your
sales funnel
Monitoring these 5 areas for potential red flags will ensure that
you keep an eye out for any leaks in the sales funnel
• The rate of leads to closed deals
• The rate of opportunities to closed deals
• Pipeline coverage is too low for your sales team to meet
quota
• Amount of stalled opportunities
• Amount of leads that haven’t been followed up on
12. Marketing Metrics that matter to your CEO
1. Customer Acquisition Cost
(CAC)
2. Marketing as a % of CAC
3. Ratio of CLV to CAC
4. Time to payback CAC
5. Marketing Originated
Customer %
6. Marketing Influenced
Customer %
13. Customer Acquisition Cost
How to Compute this Implications for Marketing
All sales & marketing
costs in a period/ Total
number of new
customers in that period
An increase means
Marketing/Sales spend
might not be efficient
14. Marketing as a % of Customer Acquisition Cost
Total Marketing costs/
Total marketing and
Sales cost used to
calculate CAC
An increase can mean 2 things
1. Marketing spend was not
efficient enough
2. Your Marketing model is
one where Marketing is
doing a big chunk of the
work to bring customers
How to Compute this Implications for Marketing
15. Ratio of Customer Life Time Value to Customer
Acquisition Cost
How to Compute this Implications for Marketing
A high ratio means you have a
higher ROI on Sales &
Marketing
Total annual payments from a
customer/(churn rate*CAC)
16. Time to payback CAC
How to Compute this Implications for Marketing
A higher payback means that
you take longer to earn back
the CAC
CAC/how many customers pay
you on average each month
17. Marketing Originated Customer %
How to Compute this Implications for Marketing
A higher percentage means
marketing is responsible for
driving a lot of the new
customers and sales isn’t as
effective
Percentage of all new
customers that came from a
lead that marketing generated
18. Marketing Influenced Customer %
How to Compute this Implications for Marketing
An increase in this % means
that Marketing is helping
influence more buying decision
making
Percentage of all new
customers for a specific period
who had any interaction with a
marketing activity
19. Summary
Metrics will
v Ensure that you have access to unlimited marketing
budgets
v Bring efficiency and order to Marketing
v Showcase ROI and profitability from Marketing
campaigns and efforts
v Increase sales productivity
v Help marketing have a direct impact on customer
conversion