Executives are indifferent to the philosophical nuances of new measurement models. To convince them to abandon legacy metrics like MQLs, frame the change around what they care about: cost of growth, CAC payback, EBITDA, and overall business risk, not just better marketing data.
The 'MQL death cycle' is over. Forward-thinking marketing organizations should align around Net Annual Recurring Revenue (Net ARR) as their ultimate measure of success. This metric, which combines new customer acquisition with retention, forces a focus on the entire customer lifecycle and proves marketing's contribution to sustainable business growth.
Metrics like "Marketing Qualified Lead" are meaningless to the customer. Instead, define key performance indicators around the value a customer receives. A good KPI answers the question: "Have we delivered enough value to convince them to keep going to the next stage?"
A CRO program's primary metric must directly impact the business bottom line (revenue, MQLs, SQLs), not vanity metrics like bounce rate. The argument that bottom-line impact is "too hard to measure" is an unacceptable excuse that undermines the program's strategic value and executive buy-in.
Don't wage a direct war on familiar but flawed metrics. The politically savvy approach is to introduce new, more insightful KPIs alongside them. As the new metrics prove their superior value in driving decisions, the legacy ones will naturally become obsolete and be outgrown.
To bridge the communication gap with leadership, reframe common product metrics into financial terms. Instead of reporting daily active users (DAU), calculate and present average revenue per daily active user (ARPA-DAU). Similarly, frame quality initiatives not as ticket reduction but as operating expense (OPEX) savings.
While LTV is important, it's often a lagging and inaccurate indicator. Focusing on the CAC-to-Payback Period ratio provides a more immediate, tangible metric. If the ratio is positive against a set goal (e.g., 12-36 months), it's a clear signal for marketing teams to aggressively increase spend and accelerate growth.
Escape the trap of chasing top-line revenue. Instead, make contribution margin (revenue minus COGS, ad spend, and discounts) your primary success metric. This provides a truer picture of business health and aligns the entire organization around profitable, sustainable growth rather than vanity metrics.
Position marketing as the engine for future quarters' growth, while sales focuses on closing current-quarter deals. This reframes marketing's long-term investments (like brand building) as essential for sustainable revenue, justifying budgets that don't show immediate, direct ROI to a CFO.
C-suites and shareholders are increasingly focused on the long-term profitability of customer relationships. ABM programs should be measured by their ability to increase customer LTV, which reflects success in retention, cross-selling, and building "customers for life," not just closing the next deal.
When pitching a move away from legacy metrics like MQLs, don't just present flaws. Frame the new model as a superior, more predictable growth equation. Executives need a reliable forecasting model, so give them a new 'plug and play' formula to secure their buy-in.