One of the roles of a CMO (as well as a fractional CMO) is to bridge marketing activity and business outcomes. The trick is not in measuring everything, but measuring the right things—monthly. If you get these five metrics consistent in your organization, you’ll see how your marketing machine is performing, where it leaks, and where to double down.
1. Customer Acquisition Cost (CAC)
What it is: The average cost to acquire a new customer (marketing + sales investment).
Why it matters: If CAC is trending upward, you may be paying too much for marginal gains. If it’s falling, it means your marketing is becoming more efficient.
How to use it: Break CAC down by channel (paid ads, content, events, etc.). See which ones are rising or falling over time.
Pitfall to avoid: Don’t exclude “hidden” costs like team salaries, tool subscriptions, creative overhead, or attribution “noise.”
2. LTV : CAC Ratio (or Customer Lifetime Value / CAC)
What it is: Ratio comparing the lifetime value (revenue + margin) of a customer vs. what you paid to acquire them.
Why it matters: A high ratio indicates your acquisition is sustainable; a low one warns you’re burning money.
How to use it: Track this over cohorts. For new vs. mature customer segments.
Pitfall to avoid: Don’t overestimate LTV early. Use realistic churn/retention assumptions.
3. Marketing-Sourced Revenue / Return On Marketing Spend
What it is: Revenue you can credibly trace back to marketing efforts (or “attributable revenue”) and the ratio of revenue generated vs marketing spend.
Why it matters: It’s perhaps the clearest proof that marketing is not a cost center but an investment.
How to use it: Compare month-over-month and against targets. Drill into which campaigns or channels delivered this revenue.
Pitfall to avoid: Attribution is messy. Be consistent with time windows (e.g., last-click, multi-touch, first-touch) to avoid shifting baselines.
4. Conversion Rates by Channel / Funnel Stage
What it is: The percentage of users or leads who move from one stage to the next (e.g. visitor → lead, lead → opportunity) by channel.
Why it matters: Volume is seductive — conversion rates tell you quality. A channel with lower volume but higher conversion might be more valuable.
How to use it: Set targets at each stage. Watch for drops or leaps.
Pitfall to avoid: Don’t average across channels; always segment. And don’t misinterpret a conversion drop in a ramp-up phase.
5. Payback Period / Time to Recover CAC
What it is: How many months (or weeks) it takes to recoup your Customer Acquisition Cost from customer revenue.
Why it matters: This tells you how “locked up” your cash is. A shorter payback is safer, especially in lean times.
How to use it: Set a target based on your business model (e.g. ≤ 6 months in SaaS). Monitor it monthly.
Pitfall to avoid: Don’t ignore seasonality. A “bad” month might stretch payback temporarily without indicating a broken model.
Bonus / Context Metric: Share of Voice or Share of Search
While the five above tie directly to revenue and cost, in more mature or B2B settings, you also want to know your market signal: brand awareness, competitive visibility, and organic demand. Metrics like Share of Voice, Share of Search, Branded Search Volume can serve as steering indicators—especially if your business is scaling into new markets.
Next Step: Turn Insight into Action
If this topic made you reflect on your own marketing direction — that’s the perfect place to begin. Most brands don’t need louder campaigns; they need clearer structure and focus.
That’s exactly what the Diagnostic Marketing Audit is designed for: a practical, data-driven review of your current marketing with a 3–6-month roadmap tailored to your business goals. It’s the fastest way to move from ideas to clarity — and from clarity to results.
The marketing audit starts at 9,900 CZK (€410), and we begin with a free 15-minute intro call to see if it’s the right fit.