My Favorite Marketing Metrics

Return on Marketing Investment

Formula: (Attributable Revenue – Campaign Investment) / (Campaign Investment) = ROI (over X time period)

Customer Attrition

Formula: (Customers lost in a given time period / Total number of customers) x 100

Customer Lifetime Value (LTV)

Formula: Gross margin (%) x Length of lifetime in pay periods x Revenue per subscription per pay period

Customer Acquisition Cost (CAC)

Formula: Total marketing spend on customer acquisition / Total new customers

Lifetime Value (LTV) : Customer Acquisition Cost (CAC)

Formula: Gross Margin % x ( 1 / Monthly Churn ) x Avg. Monthly Subscription Revenue per Customer : Sales and Marketing Costs / New Customers Won

Lead Conversion Rate

Formula: (Leads converted to Sales/Total Leads) x 100

Cost Per Lead

Formula: Total cost of campaign / # of leads generated

Return On Advertising Spend (ROAS)

Formula: Revenue from ad campaign / Cost of ad campaign