5 Marketing Metrics and Their Definitions

Published: 2026-02-24 · Inbound Marketing · Ricky Bandelin

An Introduction to Marketing Metrics. If you had to, how would you answer the question: is your marketing working? These 5 key metrics give you the answer.

Key Takeaways

• Customer Acquisition Cost measures how efficiently your marketing converts spend into new customers
• Customer Lifetime Value tells you how much a new customer is worth over the full course of their relationship with your business
• Return on Ad Spend connects advertising investment directly to revenue generated
• Conversion rate measures the percentage of visitors or leads who complete a desired action
• Marketing metrics are only useful if they are tracked consistently and used to inform decisions, not just reported

1. Customer Acquisition Cost (CAC): The total cost of acquiring a new customer, including all marketing and sales expenses divided by the number of new customers acquired.

2. Customer Lifetime Value (CLV): The total revenue you expect to generate from a single customer account throughout their relationship with your business.

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