Increase Marketing Efficiency: Tip #9

If you’re a CMO under pressure to increase “marketing efficiency” numbers:
Here’s 💡IDEA #9

👉 Partner with your CFO

Start by aligning on what “efficient” actually means:
📈 LTV/CAC > 3 ?
⏳ CAC Payback < 12 months ?
📊 Net Magic Number > 1.2 ?

Then run the numbers:
- Use conservative assumptions for gross margin, ASP, churn, and added ARR
- Back into a total marketing budget that supports those targets
- Bring your CRO into the discussion - if marketing and sales share a magic number framework, every dollar spent in sales is one less for marketing

Once you get to a total market budget, decide how to allocate:
Headcount vs. programs. Brand vs. growth vs. product marketing, etc.
Pass that budget down to your team leads — let them choose how to spend it:
FTEs they’ve been pushing for, or more dollars toward campaigns?

Do the work up front.
Own the back-of-the-envelope model.
Revisit quarterly.

The result? More transparency. Fewer surprises. Fewer panic cuts.

🍾 Here's to taking control of your marketing efficiency numbers instead of letting them control you.

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