Generally speaking, CEO’s don’t trust marketing.  73% state that marketers lack business credibility and the ability to generate sufficient growth. Ouch! But many times, the main problem is a lack of communication between departments.

As a marketer, it’s key to inform your CEO how your work is helping the business. And for this pretty difficult task, metrics are essential! All you have to do is focus on cost and the net results, not the interim steps. CEO’s look at the figures that translate into growth and revenue.

1. Marketing's contribution to the pipeline

This is the main metric you should take into consideration when addressing your CEO, as it reflects how all marketing activities are actually contributing to the company.

To see how you can calculate it, check out this pipeline contribution report. The blue bars indicate marketing’s contribution to the sales pipeline in terms of the total value of opportunities, while the green bars represent other non-marketing contributions to the sales pipeline.

Here’s what is states: marketing is having much more contribution to the opportunity pipeline in July compared to June. The data also reveals that the cold-calling or outbound prospecting team was beginning to lag in its performance and was not contributing as much to the sales pipeline in July and August as it was in June.

To give you a better idea; marketing departments that contribute more than 25% are considered top-notch, whereas a contribution or less than 10% is usually not satisfactory.

Another way of showing what percentage of your new business is driven by Marketing is by calculating marketing originated customers. Determine this by taking all of the new customers you signed during a  certain period of time, and look at what percentage started from    a lead generated from marketing efforts.

Tip: You can also calculate this percentage by using revenue instead of customers.

2. Marketing Influenced Customer percentage

But hey, maybe marketing didn’t only introduce some leads but actually contributed to converting them into customers at some point during the sales process. To be able to communicate this to the CEO, take into account the customers that were influenced by marketing KPI’s.

To be able to figure this out, it is essential that you track not only every lead, but also at which point of the sales funnel they were “touched” by marketing. Take all of the new customers you had in a period, then look at what percentage of them had any interaction with any marketing activity.

Of course, this percentage should always be higher than the marketing originated customers, and for most companies it is between 50% and 99%.


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3. Customer Acquisition Cost (CAC)

CEO’s definitely care about productivity! A great way of measuring this is by calculating how much the marketing department needs to spend in order to win over a new customer.

To compute this, add up your total marketing costs in a time period –including all the program or advertising spending, plus salaries, plus commissions and bonuses, plus overhead– then divide it by the number of customers you gained through marketing efforts in that same time period.

4. Lead Time to Conversion

They say time is money! And this is especially true for marketing.

This is why you should be able to offer cost-based info, but also time-based. To achieve this, calculate the total number of days it takes for a lead to convert from a prospect to an opportunity and from an opportunity to an actual customer. Measure this by comparing the time between the first contact and the final sale for each new customer, and then calculate the average.


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Great, but… how can I improve these metrics?

If you are going to show your KPI’s to your CEO, you want them to be fantastic, right? To achieve stunning results, video marketing can be of help.

For instance, having your custom explainer video can be a great hook to attract those potential customers you are craving. As they are super targeted to address just the right audience, the immediate bond you will create with your watchers will help them want to learn more about your product or service, thus engaging them further with your brand.

On top of conveying emotions easily, animated marketing videos are super educational: they are the form of content that is processed faster by the brain. It is for these reasons that they have superb remembrance rates. Research shows that 80% of viewers recall a video ad they have seen in the past 30 days and 12% finally make apurchase. Way to fuel your marketing results!


Animated video production for "BONSAI" by Yum Yum Videos.

Voilà! Now you are officially ready for that presentation with the CEO. Do you think you could add another metric to this list? What other KPI’s do you show your CEO? Let us know!

If you want to improve your marketing, don’t forget to consider using explainer videos. They are awesome because everything about them is measurable! If you want more info on them, feel free to contact us with any questions or concerns. We’d love to hear from you!


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