How To Unpick The Black Box of Performance Marketing ROI


SaaS selling is becoming consumerised.
Marketing paid channels could be more effective.
Paid is 'often' the black box of pipeline generation growth.
CMOs often need help understanding.
Let alone the CEOs and board.
How do you know it works?
You have two options:
1. Define and agree on *HARD* metrics i.e.
If you want to think strategically, 5x LTV to CAC, don't define ROI via pipeline only.
All the best performance marketing gets above that threshold (in theory).
It creeps down to 3x as it scales into the 8-9 figure annual budget range, but it should stay within that.
2. Thinking Different
I think of it differently.
- Agree on a company-wide acceptable CPA
- Any campaign that meets this = Spend more on it!
Option 2 is more scalable, easier to execute and realistic.
Option 1 is the holy grail. But that depends on the friction towards getting the end goal metric. That might cause more work than you think and take the head space away from the execution of campaigns.
What choice will you make?
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