# Marketing Metrics

Key performance indicators for marketing measurement.

## Acquisition Metrics

### Customer Acquisition Cost (CAC)
**Formula:** Total Marketing & Sales Cost / New Customers Acquired

**Benchmark:** Should be ≤ 1/3 of LTV

**Optimization:**
- Improve conversion rates
- Reduce ad costs
- Optimize channel mix
- Shorten sales cycle

### Cost Per Lead (CPL)
**Formula:** Marketing Spend / Leads Generated

**Varies by industry:**
- B2C: $5-50
- B2B SMB: $30-100
- B2B Enterprise: $100-500+

### Cost Per Acquisition (CPA)
**Formula:** Total Cost / Conversions (purchases, signups, etc.)

**Related to:**
- CAC (customer-specific)
- Used in paid advertising

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## Engagement Metrics

### Click-Through Rate (CTR)
**Formula:** Clicks / Impressions × 100

**Benchmarks:**
- Email: 2-5%
- Display ads: 0.1-0.5%
- Search ads: 2-5%
- Social: 0.5-2%

### Open Rate (Email)
**Formula:** Opens / Emails Delivered × 100

**Benchmarks:**
- B2B: 15-25%
- B2C: 15-20%
- Transactional: 40-60%

### Bounce Rate (Website)
**Formula:** Single-page Sessions / Total Sessions × 100

**Benchmarks:**
- Landing pages: 70-90%
- Content pages: 40-60%
- Service pages: 10-30%

### Time on Page
**Good benchmarks:**
- Blog posts: 2-4 minutes
- Landing pages: 30-90 seconds
- Product pages: 1-2 minutes

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## Conversion Metrics

### Conversion Rate (CVR)
**Formula:** Conversions / Total Visitors × 100

**Benchmarks:**
- E-commerce: 1-3%
- SaaS: 2-7%
- Landing pages: 2-10%
- Email signup: 1-5%

### Lead-to-Customer Rate
**Formula:** Customers / Leads × 100

**Benchmarks:**
- B2B: 2-10%
- B2C: 5-20%

### Average Order Value (AOV)
**Formula:** Total Revenue / Number of Orders

**Optimization:**
- Upsells and cross-sells
- Bundle offers
- Free shipping thresholds
- Loyalty programs

### Revenue Per Visitor (RPV)
**Formula:** Total Revenue / Total Visitors

**Better than CVR alone because it accounts for order value.**

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## Retention Metrics

### Customer Lifetime Value (LTV)
**Simple Formula:** Average Revenue per Customer × Average Customer Lifespan

**More accurate:**
(Average Purchase Value × Purchase Frequency × Customer Lifespan) × Profit Margin

**Benchmark:** Should be ≥ 3x CAC

### Churn Rate
**Formula:** Customers Lost / Total Customers × 100

**Benchmarks:**
- SaaS: 2-8% monthly
- Consumer: 5-10% monthly
- Enterprise: 0.5-2% monthly

### Net Promoter Score (NPS)
**Formula:** % Promoters (9-10) - % Detractors (0-6)

**Benchmarks:**
- >50: Excellent
- 30-50: Good
- 0-30: Okay
- <0: Needs improvement

### Monthly Recurring Revenue (MRR)
**Formula:** Number of Subscribers × Average Revenue per Subscriber

**Related:**
- ARR (Annual): MRR × 12
- Net MRR: New + Expansion - Churn - Contraction

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## ROI Metrics

### Return on Ad Spend (ROAS)
**Formula:** Revenue from Ads / Ad Spend

**Benchmarks:**
- 3:1 minimum viable
- 4:1 good
- 5:1+ excellent

### Marketing Efficiency Ratio (MER)
**Formula:** Total Revenue / Total Marketing Spend

**Broader than ROAS—includes all marketing, not just ads.**

### Payback Period
**Formula:** CAC / (Monthly Revenue × Gross Margin)

**Benchmarks:**
- <12 months: Good
- <18 months: Acceptable
- >18 months: Concern

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## Funnel Metrics

| Stage | Metric | Calculation |
|-------|--------|-------------|
| Awareness | Reach/Impressions | Total exposures |
| Interest | CTR | Clicks / Impressions |
| Consideration | Lead Rate | Leads / Visitors |
| Intent | MQL Rate | MQLs / Leads |
| Evaluation | SQL Rate | SQLs / MQLs |
| Purchase | Close Rate | Customers / SQLs |

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## Metric Relationships

### The Golden Ratio
**LTV:CAC = 3:1 or higher**

If lower:
- Acquisition too expensive
- Retention too low
- Monetization inefficient

### CAC Payback
**Ideal: < 12 months**

If longer:
- Cash flow issues
- Scaling limitations
- Need better unit economics

### ROAS vs MER
- **ROAS**: Channel-specific efficiency
- **MER**: Overall marketing efficiency
- Compare both to understand attribution blind spots

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## Metric Dashboard Priorities

### Daily
- Traffic
- Lead volume
- Revenue

### Weekly
- Conversion rates
- Channel performance
- Email metrics

### Monthly
- CAC/LTV
- Churn
- MRR/ARR
- ROAS/MER

### Quarterly
- YoY comparisons
- Cohort analysis
- Attribution modeling
