The #1 (number 1) Metric for Data & Analytics

Intro

Making business decisions for marketing and advertising should be metric based. The benchmark is Cost Per Acquisition.

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Cost Per Acquisition (CPA)

No matter the industry that you're in, whether it's B2B (business to business) or B2C (business to consumer), you'll want to know your return on advertising spend (ROAS). In order to do that, you'll need clean data across the entire acquisition process (marketing/advertising to the point of sale).

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To learn more and get insights from our founder's perspective on this, you can also watch the video that Phillip posted recently on our YouTube Channel.

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Data

Having clean data, and data that connects throughout your marketing and advertising ecosystem will enable you to derive how much it costs for you to acquire that sale. Without the data being connected, it leads to bad decision making and guesswork.

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CPA

You can spend $1 per lead, and upwards of $500 per lead. But how do you know which cost per lead (CPL) is best? That's where having a conversion rate to apply against the CPL becomes important. It's this dollar amount that becomes your Cost Per Acquisition (CPA). Your CPA will tell you which marketing campaigns (tactics and strategies) are the most effective or ineffective. See this example:

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As you can see above, the $5 leads are the lowest performers. You're better off spending money on the marketing campaign / tactic that costs you $1,000 per lead, because it has a $3,000 lower CPA.

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Analytics

Measuring your campaign is important. It's always changing. There's never a dull moment in marketing and advertising. Consumers habits change, the advertising platform goes down (or worse yet, an algorithm changes) and you're left having to chase down the next best way to improve your CPA for a given tactic or campaign.

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Conclusion

Advertising and marketing isn't static. It's ever changing and requires you to know what's going on with your marketing spend. By not having the proper data connections, you will not have the ability to perform proper analysis to understand how to make changes and adjust accordingly.

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