"We got 50,000 impressions and 2,000 likes this month!" Your manager nods, then asks the question that ruins it: "And how many customers?"
Vanity metrics feel good. Business metrics get budgets approved and people promoted. Here are the ones that matter, in plain language.
1. Customer Acquisition Cost (CAC)
What it is: How much it costs to get one new paying customer. Formula: Total marketing spend ÷ new customers Why it matters: If it costs more to get a customer than they're worth, growth means losing money faster.
2. Return on Ad Spend (ROAS)
What it is: Revenue generated for every 1 spent on ads. Formula: Revenue from ads ÷ ad spend Watch out: A good ROAS depends on your margins. 3x can be great for one business and a loss for another.
3. Conversion Rate
What it is: The percentage of visitors or leads who take the action you want. Formula: Conversions ÷ visitors × 100 Why it matters: Doubling conversion rate halves your cost per customer without touching the ads.
4. Cost per Lead (CPL)
What it is: What you pay for each lead (form, call, WhatsApp message). Always pair it with: lead quality. Cheap leads that never answer the phone are expensive.
5. Customer Lifetime Value (LTV)
What it is: How much a customer is worth over their whole relationship with you. Simple version: Average order value × number of orders per customer × gross margin Why it matters: It tells you how much you can afford to spend to get a customer.
6. LTV : CAC ratio
What it is: Value of a customer vs. cost to get them. Rule of thumb: Many businesses aim for around 3:1. Below 1:1, every new customer loses money.
7. Retention / Repeat Purchase Rate
What it is: The share of customers who come back. Why it matters: Getting a repeat customer is usually far cheaper than getting a new one.
8. Revenue (or pipeline) from marketing
What it is: The money marketing actually brought in, or for B2B, the value of opportunities it created. Why it matters: It's the number leadership cares about most.
Where likes and reach fit
They're early signals, not results. Use them to judge creative and content, but don't put them at the top of your report.
A simple monthly report that wins trust
- Headline: Revenue / customers vs. goal
- Efficiency: CAC, ROAS or CPL vs. last month
- Funnel: Where people drop off
- What we tested and learned
- What we'll do next month
One page, five sections, real numbers.
The bottom line
Marketing earns respect when it speaks the language of the business: customers, cost and revenue. Report those first, and the likes can sit in the appendix where they belong.
Want help setting up reporting that leadership trusts? Let's talk.