Marketing Metrics That CEOs Care About
Marketing metrics that matter to CEOs: CAC, LTV, pipeline, ROMI, payback period, and market share — presented in business terms.
CEOs do not care about impressions, click-through rates, or social media followers. They care about revenue, growth, and efficiency. Present marketing performance in business terms, not marketing jargon.
Customer Acquisition Cost tells the CEO how much it costs to get a new customer. Divide total marketing and sales spend by new customers acquired. Trending CAC over time reveals whether growth is becoming more or less efficient.
Customer Lifetime Value tells the CEO what a customer is worth. Multiply average purchase value by purchase frequency by customer lifespan. LTV relative to CAC determines whether the business model works.
Marketing-sourced pipeline shows how much potential revenue marketing has generated. For B2B companies, track opportunities in the sales pipeline that originated from marketing activities. This connects marketing directly to the revenue engine.
Return on marketing investment translates budget to results. For every dollar spent on marketing, how much revenue was generated? Calculate by channel and by campaign to identify where additional investment generates the best returns.
Payback period tells the CEO how quickly marketing spend is recovered. If CAC is 500 dollars and average monthly revenue per customer is 100 dollars, payback is 5 months. Shorter payback means faster reinvestment in growth.
Market share trends show competitive positioning. Are you gaining or losing share? What percentage of category searches do you appear for? Growth in absolute numbers can mask market share erosion if the market is growing faster.
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