CAC and LTV calculations

You made it through your first marketing forecasts. What an accomplishment! Conveniently, it is time for setting budgets for the next fiscal year, and as the expert on marketing performance, all the executives are counting on you to make ROI recommendations.

Because you're a seasoned Marketing Analyst at this point, you know you have to go through a few steps to get to an ROI calculation that you feel confident in. Luckily you have historical campaigns and budgets to assist your work! Based on historical data, you will calculate lifetime value (LTV) and customer acquisition cost (CAC).

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Marketing Analytics for Business

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Marketing Analytics for Business

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What does a marketing analyst do? Why is this role in high demand? In this chapter, you’ll learn about roles and business questions that a marketing analyst encounters. From revenue impact to campaign insights—you'll find that marketers will never run out of problems to analyze.

Exercise 1: Marketing lever fundamentals Exercise 2: Campaign attributes Exercise 3: Channels and tactics Exercise 4: Lever hierarchy Exercise 5: Marketing roles Exercise 6: Internal partners Exercise 7: External partners Exercise 8: Marketing business questions Exercise 9: Marketing roles and business questions Exercise 10: Marketing roles and KPIs

Marketing analytics is not for the faint of heart! Between numerous data sources and ever-increasing privacy legislation, marketing analysts must consider multiple factors in reporting. Add in measuring the indirect impact of marketing, and you’ll see why marketing analysts get extremely comfortable with imperfect data.

Exercise 1: Marketing data sources Exercise 2: Internal vs. advertiser data Exercise 3: Channel granularity Exercise 4: Audience targeting insights Exercise 5: Privacy laws Exercise 6: GDPR assessment Exercise 7: Cookie types Exercise 8: Indirect impact of marketing Exercise 9: Direct vs. Indirect channels Exercise 10: Blurred lines of channel impact

Now that you know more about the marketing analytics landscape, let's talk about how you can use it to assess campaign performance. To do this, you’ll dive into text and sentiment analysis, audience segmentation, and predictive analytics. Marketers and executives rely on analytics to send the right message to the right people at the right time.

Exercise 1: Text analysis Exercise 2: Branded and non-branded keywords Exercise 3: Paid search analysis Exercise 4: Sentiment analysis Exercise 5: Social media comments Exercise 6: NLP or manual sentiment analysis Exercise 7: Audience segmentation Exercise 8: Segmentation data options Exercise 9: Cluster analysis attributes Exercise 10: Integrated campaigns Exercise 11: Campaign stages Exercise 12: Integrated campaign planning

The big question every marketer asks is "did my marketing efforts make any money?" To answer that question you'll have to consider: seasonal patterns, business model, campaign goals, and ROI. Most importantly, you’ll be responsible for setting and measuring KPIs to evaluate marketing effectiveness.

Exercise 1: KPIs and metrics Exercise 2: Marketing funnel Exercise 3: KPI vs. supporting metric Exercise 4: Marketing forecasting Exercise 5: Forecast requirements Exercise 6: Forecasting process Exercise 7: Attribution modeling Exercise 8: LTA vs. MTA Exercise 9: Identify attribution model Exercise 10: Revenue and cost modeling Exercise 11: Spend and revenue considerations Exercise 12: CAC and LTV calculations

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Exercise 13: Wrap-up