what is your data telling you?

If you truly do not know what your business data says about...  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ [PitchGround]( [Porter]( Hey {NAME} 👋 Which data points are most important to your business marketing efforts? How do you know if you're running an effective or ineffective campaign? ad set? call to action?... If this is all foreign language to you... or you have no idea how to get these data points from your current numbers and applications, then you are in for a treat! Since one of our best selling SaaS of 2020 is ending their campaign in less than 24 hours, I will tell you 10 data points you need to be tracking right now for your marketing stack, and then I will of course tell you how Porter can easily map these out for you using formulas. If you already grabbed Porter, then you can follow along with these and add the formulas to your Google Data Studio Templates. If you have not yet signed up for the Porter LTD... I will suggest you [go here and grab it]( before it's completely gone in less than 24 hours from receiving this email. Let's get started: 👇 Consider the following ten metrics as a starting point for building out your executive report. Depending on your company’s business model and any specific objectives you’re trying to accomplish, you may find that some metrics are more valuable than others. 🧐 Leads By Channel As you’re developing and executing your marketing strategy, you want to make the most of your team’s resources. Breaking out your leads by channel—social media, paid advertising, emails, inbound marketing, content downloads, etc.—can show you where you’re getting the most bang for your buck. Here is the formula: Leads by channel = Sum of leads from channel A, Sum of Leads from Channel B, etc. A simple, yet effective way to quickly determine the best marketing channels for your business right now. Lead Quality: Bounce Rate and MQL:SQL Ratio Having a high lead count is great, but if they don’t convert to closed deals, you’ll have wasted time and money in trying to attract and sell them. You want to attract the right audience through your lead generation efforts—that is, qualified leads who are likely to purchase your products and/or services. Bounce rate can tell you whether you’re attracting the right visitors to your site. Later in the funnel, your MQL:SQL ratio can show whether your sales team is able to successfully qualify the leads you’ve given them. Here is the formula: Bounce Rate: See your site analytics MQL:SQL Ratio: (Total # SQLs / Total # MQLs) Conversion Rates Isolating conversion rates for each stage of your marketing funnel gives you insight into the customer journey. You may find that there are leaks at certain stages, causing you to lose potential revenue. Each company’s funnel will look a bit different, but I'll share a couple of metrics below to help you get started. :) Similarly, your landing pages will be key conversion points for many customers. Tracking the success of these pages so you can test and refine them is critical. Here are the sample formulas: Traffic-to-Lead Ration = (Total Website Traffic / # of New Leads) * 100 Lead-to-Customer Ratio = (Total Leads / # of New Customers) * 100 Landing Page Conversion Rates = (Total # of Leads) / (Total # of Page Visits) Cost Per Funnel Stage In addition to tracking conversion rates, you can analyze costs at each stage of your funnel to better understand where you’re losing potential revenue. It may also be useful to compare cost per funnel stage by channel so that you can see where your best opportunities are coming from. Remember, however, to keep quality in mind—a channel with a low cost per lead may come back to bite you when they fail to convert later in the funnel. One particularly important metric here is customer acquisition cost or CAC. This number calculates the total marketing and sales investment required to obtain a new customer. CAC is a key indicator not only of the marketing team’s performance but of the business as a whole. Here are the formulas: Cost per Lead (CPL) = Total Marketing Spend / # of Leads Cost Per MQL = Total Marketing Spend / # of MQLs Cost per SQL = Total Marketing Spend / # of SQLs Customer Acquisition Cost (CAC) = Total Marketing & Sales Spend / # of Closed-Won Deals Customer Lifetime Value (LTV or CLV) Not all customers are created equal, which is why it’s so important to calculate your customer lifetime value (abbreviated LTV or CLV). Calculating LTV by channel can help you determine which acquisition channels are producing the most profitable customers so that you can adjust your marketing campaigns to target those types of customers. It can also help you refine your retention marketing plan. Here is the formula: LTV = (Average Monthly Revenue Per Customer * Gross Margin per Customer) / Monthly Churn Rate LTV:CAC Ratio When you think about it, your LTV:CAC ratio is just one way of looking at your overall marketing ROI. If the cost to obtain a customer (your CAC) is higher than the total revenue that customer will provide your business (your LTV), you know your strategy is unsustainable in the long term—you’re spending your profits before you earn them. Typical benchmark investors use for LTC:CAC is 3-5x. In the early stages of your business, you may have to accept a poor LTV:CAC as you build up your customer base, so take advantage of as many low-cost marketing strategies as you can during this time. Here is the formula: LTV :CAC = [(Average Monthly Revenue Per Customer * Gross Margin per Customer) / Monthly Churn Rate] / (Total Marketing & Sales Spend / # of Closed-Won Deals) Basically, LTV divided by CAC Marketing % of CAC (M%-CAC) Although marketing will likely account for a large portion of the customer acquisition cost, it may be helpful to show the actual breakdown with your executive team, especially if your company includes all operating costs as part of CAC, rather than just sales and marketing. Changes in M%-CAC can provide useful insight for your team, but remember to consider various factors that could cause it to increase or decrease: Did sales miss quota? Did a new marketing initiative increase cost but provide better lead quality? Etc. Here is the formula: M%CAC = (Total Marketing & Sales Spend / # of Closed-Won Deals) / (Total CAC) Marketing-Sourced and Marketing-Influenced Pipeline If your company uses other customer acquisition strategies, such as outbound sales techniques, you may find it useful to calculate marketing-sourced and marketing-influenced pipeline. A Marketing-sourced pipeline shows all leads generated by marketing while a marketing-influenced pipeline includes all leads that were nurtured by marketing at any point in the sales cycle. Because revenue growth is such an important metric for CEOs, it’s important to calculate these metrics by count and by revenue value. There is no formula for this, just a metric you need to have absolute knowledge of. Marketing-Generated Revenue Marketing-generated revenue takes the marketing-sourced pipeline to the end of the funnel, calculating the total revenue from closed-won deals that originated as marketing leads. This metric is particularly impactful as it demonstrates your team’s alignment to company-wide goals and the overall health of your business. Again, there is no formula for this, just a metric you should have knowledge of through your analytics platform. The final one is my favorite thing to look at for all my businesses... Marketing ROI (MROI) Marketing ROI, or MROI, is perhaps the most important marketing KPI, particularly when it comes to reporting to a CEO. MROI shows the impact of every dollar marketing spends, which can help a cost-sensitive CEO see that marketing is (hopefully) multiplying their investment. You can also use MROI when determining budgets, setting marketing goals, and planning future strategies. MROI Formulas: MROI = (Gross Profit - Marketing Investment) / Marketing Investment You can also use the Customer Lifetime Value (CLV) instead of Gross Profit. CLV is a measure of the profit generated by a single customer or set of customers over their lifetime with your company as discussed above. MROI = (Customer Livetime Value - Marketing Investment) / Marketing Investment Now you see why it's my favorite metric to look out for :) If all these things make your head spin, you're not alone! This is why the Porter team created an easy to use tool that will help you visualize and understand Key Performance Indicators (KPI) like a complete pro, without hiring a bunch of data scientists. Porter is so useful that smart PitchGrounders are grabbing multiple copies as they understand that a product like Porter on LTD has never before been seen and will probably not be seen again. This LTD is so good that the Porter team is very close to getting into a tech accelerator program for their rapid growth and excellent stability. So if you haven't got Porter yet, you have 24 hours from the time you received this email to snatch it before it's gone 😱 [I want to Easily Visualize my Important Business KPIs 📊]( Best of All? Porter has professionally made templates that handle the creation of all these metrics for you 😍 So all you need to do is plug in your ads account, analytics account, etc. and off you go! I hope you do take advantage of this unique SaaS and measure your business growth this new year. Cheers! -Udit PS: Marketing ROI is a huge topic, I was thinking to write an in-depth guide to MROI if there is enough interest from PitchGrounders. So if you are interested in these types of content, please let me know by replying to this email. Thanks! No longer want to receive these emails? [Unsubscribe](. PitchGround 2035 Sunset Lake Road, Suite B-2 Newark, DE 19702 ‌