Customer Acquisition Costs (CAC) – CAC calculates how much it costs to gain customers/clients. CAC is calculated by taking your total sales and marketing spending for a specific time period then dividing by the number of new customers/clients for that same time period. It should take into account all expenses including salary and bonuses for sales and marketing.

MQL to SQL Rate – Your MQL (marketing qualified leads) to SQL (sales qualified leads) rate is calculated by determining how many marketing qualified leads you need to create one sales qualified lead. This allows both the sales and marketing teams to understand the requirements to reach the final goals.

Conversion Rate • For inbound marketing efforts, your conversion rate the number of new leads gained in a period of time divided by the number of visits to your website in the same time period. • For sales, it would be the number of target accounts that turn into leads divided by the size of the list being used during a given time. The combination of all channels for this calculation is called the Blended Conversion Rate.

Lifetime Value (LTV) The two variables used to calculate LTV are: • Average length of time a customer/client is with you (typically measured in years) • Average revenue generated from that customer/client in each period of time. Multiply the two to get LTV.