Do You Know Who To Reward?

As a business owner, you are always happy to see that your sales and marketing teams generated new customers. But do you know which team is responsible for it? Sure, it’s both, but which one is it really?

To find out, you will have to figure out the Marketing Originated Customer %

The What?

The Marketing Originated Customer % is a ratio that shows what new business is driven by marketing, by determining which portion of your total customer acquisition directly originated from marketing efforts.

How To Calculate It

Simply take all of the new customers from a period, and tease out what percentage of them started with a lead generated by your marketing team.

The Formula

New customers started as a marketing lead / new customers in a month = Marketing Originated Customer %

For example:

Total new customers in a month = 10,000

Total new customers started as a marketing lead = 6,000

Marketing Originated Customer % = 6,000 / 10,000 = 60%

The Take Away

This means that 60% of your new customers were first touched by your marketing team. It illustrates the impact that your marketing team’s lead generation efforts have on acquiring new customers. This percentage is based on your sales and marketing relationship and structure, so your ideal ratio will vary depending on your business model. A company with an outside sales team and inside sales support may be looking at 20-40% Margin Originated Customer % whereas a company with an insde sales team and lead focused marketing team might be at 40-80%.

If you found this to be helpful, check out our free cheatsheet 6 Marketing Metrics Your Boss Acually Cares About.

The 6 Marketing Metrics Your Boss Actually Cares About

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