As the owner, technically, the buck stops with you. But it's good to get clear on what specifically belongs to you in the absence of certain roles in the business.

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Objective: Customer Acquisition Cost (This would fall to your head of revenue, who is in charge of sales and marketing)

• Metric: CAC
  • Formula: = total sales & marketing costs / total closes
  • Target < $4,000 - 6,000
  • Reporting: monthly, quarterly, yearly
  • Grouping: Aggregate
• Metric: CAC Payback Period
  • Formula: = CAC / Monthly Average Contribution Margin of Closes
    • For example: if you close a 1k per month account with a 50% direct COGS, that means you have $500 per month.
    • If your CAC is 3k it would take 6 months to pay off at the $500 per month in contribution that the account pays you.
  • Target < 6 Months
  • Reporting: monthly, quarterly, yearly
  • Grouping: Aggregate
• KPI: Cost per proposal
  • Formula: = total sales & marketing costs / total proposals
  • Target < $TBD
  • Reporting: monthly, quarterly, yearly
  • Grouping: Aggregate

Objective: Client Retention (If there's a lead accounts role in your agency, this would fall under them)

• Metric: LTV – [Reporting: monthly, quarterly, yearly]
  • Formula 1: = customer value after COGS x average customer lifespan
  • Formula 2: = (average monthly revenue of 1 account /monthly churn rate) / average monthly revenue of 1 account
  • Target > 36 months
  • Reporting: monthly, quarterly, yearly
  • Grouping: Aggregate
• KPI: NPS
  • Formula: = % of Promoters – % of Detractors
    • Formula: Promoters / total respondents
    • Formula: Detractors / total respondents
  • Target > 40%
  • Reporting: monthly, quarterly, yearly
  • Grouping: Aggregate

Objective: Profitability

• Metric: LTV:CAC
  • Formula: = LTV (in $) / average CAC
  • Target > 6:1
  • Reporting: monthly, quarterly, yearly
  • Grouping: Aggregate
• Metric: BUR
  • Target > 70%
  • Reporting: monthly, quarterly, yearly
  • Grouping: Aggregate
• Metric: Retention %
• Formula: = $ from existing accounts at end of the time period (no new accounts/closes) / $ from existing accounts at the start of the time period
• Target:
  • Yearly Target > 100% (Achieve this by upselling and getting more referrals than clients you lose each year)
• Reporting: monthly, quarterly, yearly