As a CXO of a business, you want to know how well your marketing works. On one hand, you have a stream of sales, leads, new customers, depending on the business. On the other, there are bills for advertising, promotion, sponsorship, and other activities. While the numbers themselves are known, how one influences the other is less clear.
- Can you double your sales by doubling the marketing budget?
- What will happen if you halve the budget or cut it completely?
- How many sales occurred thanks to marketing?
- What is your incremental cost of sale?
- With all the marketing bills, what are you actually paying for? – it is not the “clicks” or “followers” that you want.
Let's start from the end, what you are paying for.