Do your metrics tell the right story?

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As marketers and CX executives, we live and die by the numbers. But are these the numbers the CEO wants?

The volume of traffic, bounce rates, conversion rates, average order value, downloads, sales, lifetime value… whatever it is that you’re “selling”, there will be numbers that can be used to measure and benchmark your success. Use the right numbers, and they can be empowering. Focus on the wrong numbers, and they can be distracting, or even worse, debilitating.
Marketing metrics - Tom Fishburne - used under licence

So what are the numbers your CEO cares about?

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CAC (Customer Aquisition Cost)

If this increases you may be spending too much for each new customer and the profit on each customer reduces.
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CLTV (Customer Lifetime Value)

The definition of CLTV varies but usually is revenue or gross margin over a customer’s life time. When you reduce customer churn you increase CLTV.
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CLTV to CAC ratio

The higher this ratio the better. A ratio of 3:1 or higher shows good return on Sales and marketing activity.
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CAC months (payback)

A higher payback time means it takes longer to earn back the investment in CAC.
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Total customer numbers

This target is achieved more easily as you reduce your customer churn. The more customers retained, the fewer new customer need to be acquired to meet target customer numbers.

Let’s crunch the numbers

Enter your basic figures and we’ll calculate your core metrics.

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After SmartMeasures 1
Churn rate
{{CLTVLabel}} Lifetime Value
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{{CLTVgrossAfter | currency:"$":0}}
CLTV to CAC ratio
CAC months
Extra customers saved annually
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Saved customers
1 Typical results – results vary per customer

Think your CEO would be happy with those numbers?

Do you have what it takes to improve your core metrics?

Contact us