Numbers you need to calculate your Marketing Budget

"If you don't know your numbers, you don't know your business"

Too many businesses have no rhyme or reason around how they set their marketing budget. Smart businesses set goals and track the critical numbers needed to measure results.

Here are some of the metrics we use in our business to put some sanity around your business marketing budget. You will also need some numbers around number of leads and conversion ratres on those leads if you are putting together a marketing strategy.

Metric	Calculation	Value	Targets
Average Profit per customer per year	Average Order Value * Purchases Per Year * Profit Margin. 100*1*0.25=	$	$
Cost to Acquire Customer (CAC):	Avg Marketing and sales expenses per month / # of new customer a month		3:1 LTV:CAC
Life Time Value of Customer (LTV):	Avg. Profit per customer per year * Avg. Number of years as customer	$	$
How many customers do you need per week?	e.g. Total Number of appointments per week.
How many new customers do you need per week?	e.g. Empty appointments per week
Current Opportunity Cost Per Week?	e.g. (Weekly Time slots filled / number of possible weekly slots) * $100	$	$
Marketing Budget	CAC X Number of new Customers week	$	$ per week