3 Inbound Marketing Analytics Your CMO Will Love

Inbound Marketing metrics are objective measurements that help you evaluate the success of your marketing campaigns. Using these metrics, you can make changes as needed and work toward getting the best return on investment. However, countless metrics are available, and using all of them to increase your ROI is virtually impossible. According to HubSpot, some marketing metrics you should always consider are:

1. Customer Acquisition Cost

This metric measures the amount of money you spend to land each customer you serve. To find your company's CAC, you must divide the total of your marketing expenses in a certain time period by the number of new customers you acquired during the same period.

Please note that you should not use this metric as your sole measure of performance. Although a lower CAC may mean that you have spent less money to acquire each of your customers, there is no guarantee that these customers will generate enough revenue to make your marketing efforts worthwhile.

2. Time to Pay Back Customer Acquisition Cost

Time to Pay Back CAC shows you how many months it will take to recover the money spent on each new customer. To calculate this metric, divide the CAC by your average customer's revenue per month. The goal is for this number to be as low as possible. The higher this number is, the longer it will take to begin earning a profit.

3. Marketing Originated Customer Percentage

Marketing Originated Customer Percentage is the percentage of new customers you acquired as a direct result of your marketing efforts. To calculate this metric, find the percentage of new customers during a given time period that resulted from a marketing-related lead. HubSpot reports that this percentage could range anywhere from 20 to 95 percent, depending on your company's sales and marketing structure.

So what?  It's important to understand the financial impact of your marketing campaigns so that you can continue to streamline your processes.  Throw out what doesn't work and hone what does. 

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