During the beginning stages of my marketing career, I used to merely scratch the surface by measuring mundane metrics.
I would get excited when I saw leads flowing into the system.
However, I later realized that the most ineffective way to measure marketing’s contribution to sales revenue is cost-per-lead.
And, the true rockstar of metrics is the cost-to-acquire a customer.
It separates the men from the boys in marketing.
While the cost per lead might give you a number to focus on, it won’t tell you if you’re walking into a dead end or a treasure trove.
When you start measuring the cost per acquisition, you delve into the strategic game rather than just the optimization game.
This means you end up asking some tough questions:
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How can we unleash a value proposition that’s the Batman of our industry—undoubtedly different and irresistibly intriguing?
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Picture us as the Marvel superhero—why should customers choose us over the competition’s tired sidekick?
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Are we hitting the bullseye with our target audience, or are we shooting marketing arrows into the abyss?
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Is our messaging creating a magnetic resonance, or are we just whispering in the wind?
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Are we cruising in the right media vehicles where our target market throws the hottest parties?
Now, here’s the kicker: those who obsess over cost-per-lead are like knights in shining armor who only care about polishing their swords.
They’re measuring metrics like cost per impression, click-through rates, and keywords – stuff everyone else in the market is already counting.
It’s like a crowded dance floor, and everyone’s performing the same old dance.
Even if you manage to make your moves smoother, it won’t magically transform the acquisition cost.
To make a real impact, we need to throw on our thinking caps, grab the strategy bull by the horns, and tackle the tough questions (listed above) head-on.
Unfortunately, many performance marketers are stuck in the comfort of their optimization bubble.
When you take up the responsibility of the cost-per-acquisition, you end up focus on every aspects of the business like product quality, back end service, sales team’s efficiency, budget and so on.
By now, you become strategic and start talking in the language of the business owner.
