The success of any internet marketing strategy may be measured in several ways. For example, you can take a look at traditional metrics like inbound links, social media engagement, and website traffic.
Experts at firms like Front Burner Marketing note, however, that when it comes to internet marketing for Akron and Cleveland businesses, you’ll want to focus on a few important key performance indicators when reporting on the progress of your marketing efforts.
These include:
(1) Ratio of Customer Lifetime Value to CAC
(2) Marketing Originated Customer %
(3) Marketing Influenced Customer %
(4) Customer Acquisition Cost (CAC)
(5) Marketing % of Customer Acquisition Cost
(6) Time to Payback CAC
We've previously discussed items 1 to 3, so now here’s a closer look at items 4 to 6.
Customer Acquisition Cost
In a nutshell, this is the amount of money a company spends to gain each new customer.
Expect your CAC to be high if you are just starting out. If your CAC is low and the number of new customers is rather high, then the strategies currently being implemented are indeed highly effective. Otherwise, you should reconsider your advertising budget or look for newer, more effective platforms for promoting your products and services.
Marketing % of Customer Acquisitions Cost
This figure indicates the chunk of your CAC that marketing takes up. In particular, this percentage tells you how well your brand is able to attract new clients given the budget, and if the amount you're spending on marketing is commensurate with the performance you're experiencing. To arrive at the percentage, compute the following:
An increase in the M%-CAC could suggest that your marketing team is underperforming or overspending. If this is the case, then consider tweaking the budget and hiring an experienced Akron or Cleveland content marketing strategist. Such an expert will enable your business to attract and retain target customers through the creation and distribution of high-quality, relevant, and valuable content.
Time to Payback CAC
You’ll also need to also calculate how much time (in months) it will take you to recover all your expenses, given the current collected revenue. From there, you can estimate how soon newly acquired clients can start becoming profitable.
Follow this simple formula:
If the results indicate a long recovery time, then you may have spent too much on advertising and are far from meeting your customer acquisition target. You may have to tweak your strategy accordingly.
Looking to grow your business? A company like Front Burner Marketing, LLC has the cutting-edge expertise and traditional marketing know-how to generate leads and boost your revenue.
Sources:
The 6 Marketing Metrics Your Boss Actually Cares About, Front Burner Marketing
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