You want to use these objectives in the order presented and put them in a dashboard for maximum visibility. Review them weekly. Even though CAC is not solely a function of marketing, because sales close rates can greatly affect CAC, we need to understand the impact marketing has on overall CAC before we add in sales costs. The biggest thing people bring up is Brand. Brand initiatives should lower overall cost per lead, increase lead quality, and lower CAC if done right and in the right balance.

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Objective: Lead Volume

• Metric: Cost per MQL (Marketing Qualified Lead)
  • Formula: = Total media spend / # of leads
  • Target < $TBD (has to be relative to your MQL to SQL ratio and to your average LTV)
  • Reporting: monthly, quarterly, yearly
  • Grouping: By inbound funnel + aggregate
• KPI: # of MQLs
  • = Total # of leads
  • Target # TBD
  • Reporting: monthly, quarterly, yearly
  • Grouping: By inbound funnel + aggregate

Objective: Lead Quality

• Metric: Cost per SQL (Sales Qualified Lead)
  • Formula: = Total media spend / SQLs
  • Target < $ TBD (has to be relative to your MQL to SQL ratio and to your average LTV)
  • Reporting: monthly, quarterly, yearly
  • Grouping: By inbound funnel + aggregate
• KPI: MQL to SQL rate
  • Formula: = Total # of SQL / Total # of Leads
  • Target > 20%
  • Reporting: monthly, quarterly, yearly
  • Grouping: By inbound funnel + aggregate

Objective: Customer Acquisition Cost

• Metric: Marketing CAC w/o cost of sales
  • Formula: = Total marketing costs (salary + media) / # of marketing SQL’s closed
  • Target < $4,000 (this is relative to your LTV. You want to get LTV to CAC to be 3:1 including sales costs)
  • Reporting: monthly, quarterly, yearly
  • Grouping: By inbound funnel + aggregate
• KPI: Cost per Proposal (marketing only)
  • Formula: = Total marketing costs / Total # of marketing SQL proposals
  • Target < $ TBD
  • Reporting: monthly, quarterly, yearly
  • Grouping: By inbound funnel + aggregate