Key Metrics for Evaluating Business Strategy Success

CMOs call marketing an engine for growth. CFOs call it a primary lever of enterprise value creation. One speaks in brand equity, customer acquisition, engagement, and monetization.  The other speaks in margins and profitability. When these departments don’t align,  ↳ Investments get slashed,  ↳ Performance stalls,  ↳ Growth suffers. But when marketing and finance work with UNIFIED language and data.   Companies make smarter investments. Here are four key metrics that help CMOs and CFOs speak the same language: 1. Customer Acquisition Cost (CAC) Formula: Total marketing spend ÷ New customers acquired CFOs ask, “How much are we spending per new customer? Can we lower it?” CMOs ask, “Which channels bring most efficiency, can we shift our budget?” CFOs want cost control, CMOs want better-performing channels.  ↳ Tracking CAC aligns both executives. 2. Customer Lifetime Value (LTV) Formula: (Avg. Purchase Value × Purchase Frequency × Margin Rate × Activity Rate) CFOs ask, “Are we making enough long-term revenue to justify CAC?” CMOs ask, “Should we increase LTV through engagement or monetization?” A CFO sees it as profitability over time, A CMO sees opportunities. ↳ Higher LTV justifies marketing investment. 3. Cash Payback Period Formula: CAC ÷ Gross Margin per Customer per Month CEOs ask, “How long before we earn back what we spent?” CMOs ask, “Which channels pay back fastest?” CFOs want liquidity, CMOs want reinvestment speed. ↳ A shorter payback period means faster growth cycles and less financial risk. 4. LTV:CAC Formula: Customer Lifetime Value ÷ Customer Acquisition Cost. CFOs ask: "Our financial plan requires a 3x ROI in 3 years-can you deliver?" CMOs ask: "Should I optimize for faster payback or a 3-year LTV:CAC target?" CFOs want financial justification, CMOs want strategic growth. ↳ A shared LTV:CAC view aligns investment decisions. CFOs and CMOs don’t need to agree on everything,  but they do need to align on the data that drives GROWTH. Start with blended performance, Then look at leading indicators for Paid. The last thing you want is debating attribution with a CEO or investor, When you're not even aligned on the core metrics above. Don't manage marketing as an expense,  Manage it as an investment. Track the right numbers, speak the same language, and watch your business grow. Which of these metrics does your company focus on the most? Drop a comment below. * * * I talk about the real mechanics of growth, data, and execution. If that’s what you care about, let’s connect.

𝗔𝗿𝗲 𝗬𝗼𝘂 𝗠𝗶𝘀𝘀𝗶𝗻𝗴 𝘁𝗵𝗲 𝗕𝗶𝗴𝗴𝗲𝗿 𝗣𝗶𝗰𝘁𝘂𝗿𝗲? Many sales and marketing leaders focus on metrics that matter to their individual teams. While tracking website traffic, lead volume, or pipeline velocity is common, have you stepped back to see how these numbers fit into your overall revenue engine? Below is a snapshot of the key metrics each function typically tracks—and the revenue engine metrics you should monitor together for a complete picture: 𝗙𝗼𝗿 𝗦𝗮𝗹𝗲𝘀 𝗟𝗲𝗮𝗱𝗲𝗿𝘀:  • 𝗣𝗶𝗽𝗲𝗹𝗶𝗻𝗲 𝗩𝗲𝗹𝗼𝗰𝗶𝘁𝘆: How quickly deals move through your funnel. Faster velocity means efficient conversion.   • 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝗥𝗮𝘁𝗲𝘀: The percentage of leads that turn into opportunities and closed deals.   • 𝗔𝘃𝗲𝗿𝗮𝗴𝗲 𝗗𝗲𝗮𝗹 𝗦𝗶𝘇𝗲 & 𝗪𝗶𝗻 𝗥𝗮𝘁𝗲𝘀: Indicators of deal quality and sales effectiveness. 𝗙𝗼𝗿 𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗟𝗲𝗮𝗱𝗲𝗿𝘀:  • 𝗪𝗲𝗯𝘀𝗶𝘁𝗲 𝗧𝗿𝗮𝗳𝗳𝗶𝗰 & 𝗦𝗼𝗰𝗶𝗮𝗹 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁: Although often seen as vanity metrics, they offer a glimpse of initial interest.   • 𝗟𝗲𝗮𝗱 𝗩𝗼𝗹𝘂𝗺𝗲 & 𝗤𝘂𝗮𝗹𝗶𝘁𝘆: Focus on not just the number, but the qualification of leads (e.g., MQLs).   • 𝗟𝗲𝗮𝗱 𝗩𝗲𝗹𝗼𝗰𝗶𝘁𝘆 𝗥𝗮𝘁𝗲 (𝗟𝗩𝗥): The growth rate of qualified leads, hinting at future sales potential.   • 𝗔𝘁𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 & 𝗥𝗢𝗜: Which campaigns are truly driving valuable leads and revenue. 𝗙𝗼𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗦𝘂𝗰𝗰𝗲𝘀𝘀 𝗟𝗲𝗮𝗱𝗲𝗿𝘀:  • 𝗥𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻 & 𝗖𝗵𝘂𝗿𝗻 𝗥𝗮𝘁𝗲𝘀: High retention and low churn show that your team is building lasting, profitable relationships.   • 𝗨𝗽𝘀𝗲𝗹𝗹 & 𝗖𝗿𝗼𝘀𝘀-𝗦𝗲𝗹𝗹 𝗥𝗮𝘁𝗲𝘀: Measure success in generating additional revenue from existing customers.   • 𝗡𝗣𝗦 & 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗛𝗲𝗮𝗹𝘁𝗵 𝗦𝗰𝗼𝗿𝗲𝘀: Gauge customer satisfaction and loyalty. 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗘𝗻𝗴𝗶𝗻𝗲 𝗠𝗲𝘁𝗿𝗶𝗰𝘀 𝘁𝗼 𝗠𝗼𝗻𝗶𝘁𝗼𝗿 𝗧𝗼𝗴𝗲𝘁𝗵𝗲𝗿:  • 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗲𝗱 𝗙𝘂𝗻𝗻𝗲𝗹 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻: Track the seamless movement from MQL to SQL to closed deal.   • 𝗖𝗔𝗖 𝘃𝘀. 𝗖𝗟𝗩: Compare the cost of acquiring customers with the revenue they generate over their lifetime.   • 𝗨𝗻𝗶𝗳𝗶𝗲𝗱 𝗗𝗮𝘁𝗮 𝗘𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲𝗻𝗲𝘀𝘀: Assess how well customer data is shared and used across teams for smarter targeting and personalization. Shifting your focus from isolated metrics to these holistic KPIs gives you clarity on where your revenue engine excels—and where it needs improvement. Together, these indicators provide a comprehensive view of how effectively your organization drives sustainable revenue growth. Are you ready to break down silos and embrace a holistic view of your performance metrics -  to unlock the full potential of your revenue engine?

Most CFOs track 50+ metrics. Only 11 actually matter. I just finished writing a guide for CFOs who are drowning in dashboards but starving for insight. The 11 metrics that separate great companies from the rest: 1. Cash Balance & Runway – Not just how much, but how long Target: 12-24 months. Red flag: <9 months 2. Burn Multiple – Every dollar burned should create >$1 in ARR Excellent: <1. Warning: >2 3. CAC Payback – Speed matters more than cost <12 months = excellent. >18 months = trouble 4. Gross Margin – Your true profitability engine SaaS benchmark: 75-85% 5. Contribution Margin by Product – Know what actually makes money Target: >50% per product line 6. Operating Leverage – Are you scaling or just growing? Positive leverage = real scalability 7. Net Revenue Retention – The compound interest of SaaS Top quartile: 110-120%+ 8. EBITDA Margin – Profitability that matters Growth stage: 10-25% 9. Days Sales Outstanding – Cash velocity indicator Target: 30-60 days 10. Bookings vs Revenue – Reality check on growth Persistent divergence = red flag 11. Forecast Accuracy – Trust builder or breaker Target: ±10% variance Most companies measure everything and understand nothing. These 11 tell you if you're building something durable or just burning cash faster. The best CFOs know: Metrics aren't just numbers. They're stories about your business. Your job is to read them right. And act before it's too late. P.S. Want the full guide with formulas, benchmarks, and red flags for each metric? We just published it with BILL. Get it here: https://lnkd.in/ednjfTPW #BILLPartner

In the early stages of a startup, it's easy to get caught up in vanity metrics, like website traffic or social media followers, but these don't always reflect real progress. For startups aiming for growth, focus on metrics that truly matter: Customer Acquisition Cost (CAC): How much does it cost to acquire a new customer? Reducing CAC while increasing revenue is a key sign of efficiency. Lifetime Value (LTV): What’s the total revenue you can expect from a customer over their lifetime? A high LTV to CAC ratio shows long-term sustainability. Monthly Recurring Revenue (MRR): For SaaS or subscription-based models, MRR provides a clear view of consistent revenue growth. Churn Rate: Are your customers sticking around? High churn is a red flag that you need to refine your product or retention strategy. Customer Retention Rate: The flip side of churn, this metric shows how well you're keeping your customers engaged and satisfied. Growth Rate: Ultimately, how fast is your business expanding? A steady growth rate indicates that you're on the right path to scaling. These metrics give investors and founders a better sense of real performance and sustainable growth. The key? Tracking them early and adjusting course before it's too late. What metrics do you focus on in your startup? #startups #growthmetrics #businessstrategy #scaling #entrepreneurship #venturecapital #privateequity