5 Marketing Metrics That Actually Matter (and How to Report on Them)

Not all marketing metrics are created equal. In today’s world of dashboards, real-time data, and performance charts, it’s easy to feel overwhelmed and distracted by too many numbers. Many teams find themselves tracking dozens of metrics—vanity or otherwise—but only a few truly shape strategy, inform decisions, and demonstrate value.

In this article, we’ll highlight five marketing metrics that consistently provide clarity, direction, and measurable impact. You’ll learn what makes them powerful, how to calculate and interpret them, and most importantly, how to communicate them clearly—whether you’re speaking to your client, your team, or your exec board. According to a 2023 HubSpot report, 51% of marketers say proving ROI is their biggest challenge—yet it’s the top concern for stakeholders.

1. Customer Acquisition Cost (CAC)

• Why it matters: CAC tells you how much it costs to acquire a new customer. It’s one of the clearest indicators of how efficiently your marketing budget is working. When CAC is high and LTV is low, your strategy needs a rethink. It’s not just a number—it’s a measure of your marketing return on investment.
• How to calculate: Total Marketing Spend ÷ Number of New Customers Acquired
• What to watch: Track CAC monthly or quarterly. Spikes may signal inefficient campaigns or misaligned targeting. Monitor alongside LTV (Customer Lifetime Value) to assess if your spend is sustainable and profitable. If your CAC goes up and LTV doesn’t, there’s a problem.
• How to report it: Always show trends over time. If you can, segment by channel—like Google Ads, Meta, or email—to spot inefficiencies. Use clear visualisations and add commentary to explain shifts. For example, if CAC jumped in March, was it due to a high-spend campaign or seasonality? Provide context.

2. Marketing Qualified Leads (MQLs)

• Why it matters: MQLs help you understand if your campaigns are reaching the right people—those more likely to convert into paying customers. They show how close you are to generating real revenue. Tracking MQLs is also essential to align marketing with sales.
• How to define: Work with your sales team to agree on MQL criteria. This might include job title, company size, interaction level, or campaign engagement. The key is having consistent qualification rules, so your pipeline stays predictable.
• What to watch: Track total MQL volume, conversion to SQL (Sales Qualified Leads), and where they came from. Sharp drops or spikes are signals worth investigating. Make sure quality isn’t dropping just because quantity is rising.
• How to report it: Use funnel visuals to show how MQLs move through the pipeline. Attribute MQLs to specific campaigns or lead sources. Highlight successful channels or creative. According to MarketingProfs, aligning sales and marketing can lead to 36% higher customer retention and 38% higher sales win rates.

3. Conversion Rate by Channel

• Why it matters: Traffic means nothing without conversion. This metric reveals which marketing channels are turning visitors into leads or customers. It tells you where to double down—or pull back.
• How to calculate: (Conversions from Channel ÷ Total Visits from Channel) x 100
• What to watch: Identify which channels bring high-intent visitors and which underperform. If organic search converts better than paid social, prioritise SEO. Monitor landing page performance to diagnose friction. Look at bounce rates, time on page, and CTA engagement.
• How to report it: Use side-by-side bar charts or heatmaps for visual impact. Include total traffic and conversion percentages for context. Point out what’s working and what needs improvement—in language everyone can understand.

4. Customer Lifetime Value (LTV)

• Why it matters: LTV tells you how much revenue a typical customer brings over their relationship with your business. When paired with CAC, it shows whether your acquisition strategy makes financial sense. If LTV is significantly higher than CAC, you’re likely on the right path.
• How to calculate: Average Purchase Value × Purchase Frequency × Customer Lifespan
• What to watch: An increasing LTV often signals strong product-market fit and successful retention efforts. A declining LTV might suggest churn, poor onboarding, or weak value delivery. Keep an eye on retention rates.
• How to report it: Pair LTV with churn or retention data. Use cohort analysis to highlight differences across customer segments. Relate changes to product updates, support initiatives, or pricing changes. This paints a more complete picture and shows the long-term health of your strategy.

5. Marketing-Sourced Revenue

• Why it matters: This metric connects marketing activity directly to the bottom line. It shows how your work contributes to pipeline and closed deals. For execs, this is one of the most important numbers.
• How to define: Count revenue from deals that originated through a marketing campaign or touchpoint—ads, webinars, SEO, emails. Include both direct and assisted attribution. Define clear attribution rules to avoid confusion.
• What to watch: Attribution models matter. Over-reliance on last-click may underplay marketing’s role. Ensure your CRM or analytics tool tracks multi-touch influence. Keep attribution transparent.
• How to report it: Show marketing-sourced revenue by campaign, channel, or timeframe. Use line graphs or bar charts to visualise growth. Add short narratives to link revenue to specific initiatives. This turns raw numbers into strategic proof of performance.

Effective reporting isn’t about showing everything—it’s about showing what matters. By focusing on these five metrics, marketers can move beyond vanity KPIs and start delivering insight that drives decisions.

With a tool like Modalboard, you can bring these insights together into one place. It simplifies tracking, automates reporting, and makes your results easier to understand and share.

Focus on what drives growth. Communicate it clearly. That’s what reporting should be about.