And Metrics Stephan Sorger Pdf ((better)) — Marketing Analytics Strategic Models

Identification and analysis of market segments and competitors.

Sorger often cites the LTV:CAC ratio . A healthy business should have an LTV that is at least 3x the CAC. If your LTV is less than your CAC, you are burning cash. If your LTV is less than your CAC, you are burning cash

In the modern data-driven economy, gut feelings are no longer a viable strategy. Chief Marketing Officers (CMOs) and business strategists are under immense pressure to justify every dollar spent. This is where becomes the linchpin of success. This is where becomes the linchpin of success

: Help decide the best course of action to maximize specific objectives given input constraints (e.g., "Given budget , what should I do?"). Stephan Sorger Key Metrics and Analytical Domains If your LTV is less than your CAC, you are burning cash

| Category | Metric | Formula / Definition | Strategic Value | | :--- | :--- | :--- | :--- | | | Customer Acquisition Cost (CAC) | Total Sales & Marketing Cost / New Customers | Determines sustainability of growth. | | Behavior | Conversion Rate | (Conversions / Total Visitors) x 100 | Measures funnel efficiency. | | Behavior | Abandonment Rate | (Carts initiated - Purchases) / Carts initiated | Identifies friction in checkout. | | Monetization | Average Order Value (AOV) | Total Revenue / Number of Orders | Measures upsell/cross-sell success. | | Monetization | Customer Lifetime Value (LTV) | (AOV x Purchase Frequency) x Avg Lifespan | Tells you how much to spend on CAC. | | Retention | Churn Rate | Customers Lost / Total Customers at Start | Predicts revenue erosion. | | Financial | ROMI (Return on Marketing Investment) | (Incremental Revenue - Marketing Spend) / Marketing Spend | The ultimate efficiency ratio. |