14/03/2024
Is your marketing working? 🤔
One of the most important elements needed to answer that question is time.
How long have you been running campaigns and executing marketing efforts? Have you been consistent? Is there a marketing ex*****on plan in place that you are following?
If you're doing marketing here and there, your data set isn't something you can rely on because the variables are always changing.
To be more specific and to better answer the question, we need to look at Customer Acquisition Costs (CAC) over time and compare that to customer lifetime value (CLV).
Here's the data you need to know to get to these figures:
📈A set timeframe for the analysis (month, quarter, year, all time, etc.)
📈Costs of marketing for that period
📈Costs of sales efforts for that period
📈Number of new customers for that period
📈The average revenue per customer in that period
Then you divide your total costs by the number of new customers and you get your CAC and you can now compare that figure against your CLV and see how profitable your efforts are.
But your analysis shouldn't stop there.
You can take this even further by understanding the performance of each marketing channel individually.
Keep reading here: https://grazemarketing.com/marketing-performance-measurement-customer-acquisition-cost/
