Presenting marketing results at the board level #34

Presenting marketing results at the board level is an art that requires not only showing numbers, but also translating them into business and financial language. Management doesn’t want to hear about “likes” or “shares.” – They want to know how marketing is affecting the company’s revenue, profits and growth. Let’s discuss this step by step so you can effectively communicate the value of marketing.

Key metrics of interest to management

1. ROI (Return on Investment) – Return on investment.

ROI is the most important metric that shows how much profit each dollar spent on marketing generates.

• Formula:ROI=Marketing Revenue-Marketing Costs×100%ROI=Marketing CostsMarketing Revenue-Marketing Costs×100%.
• Example: If you spent £100,000 on marketing, and the revenue from these activities was £300,000, the ROI is 200%.

2. CAC (Customer Acquisition Cost) – Customer acquisition cost

CAC shows how much it costs to acquire one customer.

• Formula:CAC=Total marketing expendituresNumber of customers acquiredCAC=Number of customers acquiredCAC=Total marketing expenditures.
• Example: If you spent PLN 50,000 on marketing and acquired 500 customers, the CAC is PLN 100.

3. LTV (Lifetime Value) – Customer lifetime value

LTV shows how much revenue the customer generates over the entire period of cooperation with the company.

• Formula:LTV=Sˊrednia wartosˊcˊ zamoˊwienia×Częstotliwosˊcˊ purchaseoˊw×Sˊaverage time of cooˊoperationLTV=Sˊrednia wartosˊcˊ zamoˊwienia×Częstotliwosˊcˊ purchaseoˊw×Sˊaverage time of cooˊoperation.
• Example: If a customer spends PLN 200 per month on average, and the cooperation lasts 2 years, the LTV is PLN 4800.

4. CLV:CAC Ratio – Ratio of customer value to acquisition cost

The ideal ratio is 3:1 – this means that a customer generates three times as much revenue as it costs to acquire.

• Formula:CLV:CAC=LTVCACCLV:CAC=CACLTV
• Example: If the LTV is 3,000 zlotys and the CAC is 100 zlotys, the CLV:CAC ratio is 30:1.

5. Marketing Contribution to Revenue

It shows what percentage of a company’s revenue is generated by marketing activities.

• Formula:MarketingContribution=Total revenue×100%.MarketingContribution=Total revenueMarketing revenue×100%
• Example: If the revenue from marketing was 300,000 zlotys, and the company’s total revenue is 1,000,000 zlotys, marketing’s share is 30%.

How do you present marketing results to the board?

1. speak business language, not marketing language

Management doesn’t want to hear about “likes” and “shares.” It wants to know how marketing affects the bottom line.

• How to do it:
  • Use business metrics such as ROI, CAC, LTV.
  • Show how marketing activities translate into increased sales, profits or market share.
  • Example: Instead of saying, “This campaign increased our social media visibility,” say, “This campaign increased sales by 15%, generating an additional $500,000 in revenue.”

2. use data visualization

Visualizations help management quickly understand the results.

• How to do it:
  • Use charts, tables and dashboards.
  • Example: Create a chart that shows how ROI changes over time for different marketing channels.
• Tools: Tableau, Power BI, Excel.

3. show long-term benefits

Marketing is not just a cost, but an investment in a company’s future.

• How to do it:
  • Show how marketing activities build brand value in the long run.
  • Example: “Investing in content marketing will increase our visibility in search engines, which will translate into a long-term increase in website traffic.”

4. be prepared for questions and concerns

Management may have questions about the effectiveness of marketing expenditures.

• How to do it:
  • Have your data and arguments ready.
  • Example: If management asks why you are increasing the budget for Google Ads, show that this channel has the highest ROI.

Case studies – How global brands present ROI of marketing

Case Study 1: Coca-Cola – Marketing Contribution to Revenue

• What they do:
  • Coca-Cola regularly presents to the board what percentage of revenue is generated by marketing activities.
  • They use data from global campaigns such as “Share a Coke” to show the impact on sales.
• Effects:
  • Management sees a direct relationship between marketing spending and revenue growth.

Case Study 2: Amazon – ROI from performance marketing campaigns.

• What they do:
  • Amazon uses advanced attribution models to show which marketing channels bring the highest ROI.
  • They present data in the form of dashboards that show ROI in real time.
• Effects:
  • Management has a clear picture of which channels are most profitable.

Case Study 3: Netflix – LTV and CAC in subscription strategy

• What they do:
  • Netflix regularly analyzes LTV and CAC for different customer segments.
  • They present to management how they are optimizing marketing spending to attract high LTV customers.
• Effects:
  • Management sees how marketing affects the company’s long-term growth.

Summary

Presenting marketing results at the board level requires translating marketing data into business and financial language. Key metrics include ROI, CAC, LTV and CLV:CAC Ratio. Data visualizations, long-term benefits and preparation for questions are essential to effectively communicate the value of marketing.