Return on marketing investment (ROMI) has become a key performance metric for securing budgets and maintaining credibility. However, many CMOs still struggle to connect the dots between brand-building activities and bottom-line revenue. This was the central topic of our Mavuus Coffee Chat, where industry veterans shared their insights on "Return on Marketing Investment: Benchmarks, Definitions, and How to Measure." 

Joining us were Greg Wong, CEO of RIWI, Joachim Koch, CEO of Aspiration Marketing, Shiv Narayanan, CMO and Founder of How To SaaS, and Imraan Hassam, Senior VP of Marketing at Vencora. The discussion focused on actionable strategies for measuring marketing impact. 

From understanding how to set the right benchmarks to aligning marketing metrics with business objectives, our panelists offered a wealth of knowledge on bridging the communication gap between marketing and the C-suite. 

Below, we’ve distilled the most critical takeaways from our Coffee Chat.

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Table of Contents:

1. Setting the Foundation: Why ROI Matters
2. Key ROI Benchmarks Every CMO Should Know
3. Strategies for Building Credibility with the C-Suite
4. Tools to Track ROI (Even for Small Teams)

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1. Setting the Foundation: Why ROI Matters

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Marketing leaders today face a critical challenge: demonstrating the impact of their efforts in ways that resonate with the executive team. CEOs and CFOs are often skeptical of marketing efforts that don’t directly tie into revenue, and marketing leaders are frequently tasked with justifying their budgets, strategies, and activities in terms the entire C-suite can understand. 

Narayanan emphasized that the goal of ROI measurement isn’t just to justify costs but to align marketing efforts with business growth objectives. Many marketers, especially in B2B, fall into the trap of focusing on vanity metrics—click-through rates, impressions, and website traffic—that don’t always resonate with the C-suite. 

Wong notes, “CMOs often talk about marketing metrics that they care about, and they're helpful metrics for them to do their job, but they're not helpful marketing metrics or executive level metrics that we need to communicate to the board or investors.” By focusing on metrics that the C-suite values, such as pipeline contribution, customer acquisition costs (CAC), and return on ad spend (ROAS), CMOs can bridge this gap and secure greater buy-in from executive leadership. 

Marketing ROI matters because it demonstrates how marketing is not just a creative function but a core part of the business strategy that fuels growth, enhances market positioning, and drives revenue. It’s crucial that marketing not only focuses on increasing awareness but also demonstrates tangible contributions to revenue and profitability. 

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Another critical reason why ROI matters is that it helps validate marketing spend. In economic downturns or when budgets are tight, marketing is often one of the first areas to see cuts. With a solid ROI framework, it becomes easier for CMOs to defend their budgets. When CMOs can clearly show the financial impact of their initiatives, they gain leverage in discussions with the CFO or CEO. Proving that marketing spend drives revenue allows marketing leaders to position their teams as essential contributors to business success rather than a cost center.

Finally, measuring ROI fosters accountability and continuous improvement. It enables marketing leaders to understand what’s working, what’s not, and where they should focus their efforts. In environments where performance is measured and communicated effectively, marketing becomes a data-driven function that can continuously optimize its strategies. Joachim Koch reinforced this point, emphasizing that tracking the right data is essential for making informed decisions about where to allocate resources for maximum impact.

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2. Key ROI Benchmarks Every CMO Should Know

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While countless metrics are available to measure marketing activities, only a few truly reflect marketing’s contribution to business growth. During the Mavuus Coffee Chat, our experts highlighted three essential benchmarks that every marketing leader should know and regularly track: pipeline growth and velocity, customer acquisition cost (CAC) payback period, and the lifetime value (LTV) to CAC ratio.

These metrics not only provide clarity on marketing’s impact but also help build a solid case when communicating with the C-suite about future investments.

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Pipeline Growth & Pipeline Velocity

While it’s important to generate leads, what matters most to executive teams is how those leads move through the funnel and translate into revenue. Imraan Haasam emphasized the importance of both pipeline growth—the increase in the volume of leads entering the funnel—and pipeline velocity, which measures how quickly leads progress from one stage to the next.

Pipeline velocity can be particularly illuminating for marketing leaders because it doesn’t just indicate how many leads are being generated and how efficiently the sales process is working. Imraan shared a simple formula to calculate pipeline velocity:

Pipeline Velocity = (Qualified Opportunities x Total Contract Value x Average Deal Size)  Sales Cycle Length

This metric helps CMOs assess the speed and efficiency of the entire sales and marketing process. Faster pipeline velocity means shorter sales cycles, which directly impacts how quickly the company can turn marketing efforts into revenue. 

As Hassam noted, "Pipeline velocity tells you how fast money is coming through the door," giving marketing leaders an actionable way to measure success and optimize their strategies.

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Customer Acquisition Cost (CAC) Payback Period

Another vital benchmark is the CAC payback period, which measures how long it takes for a company to recover the cost of acquiring a new customer. This metric is crucial because it speaks directly to the efficiency of marketing spend.

Narayanan highlighted the importance of keeping CAC payback periods under control, noting, “Anything under 12 months is elite, while under 18 months is still healthy. But if your CAC payback period is over two years, it’s a red flag.” 

The CAC payback period takes into account all the costs associated with acquiring customers, including marketing, sales, and operational expenses. When the payback period is too long, it suggests that the company is spending too much to acquire customers relative to the revenue they generate in the short term. This is particularly problematic for companies with limited cash flow or those operating in highly competitive markets. 

Companies often overlook this metric when pouring resources into expensive campaigns, but tightening up CAC can lead to significant efficiencies and better ROI. By keeping a close eye on CAC payback, CMOs can better allocate their budgets to ensure they are acquiring customers efficiently while contributing to short-term profitability.

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Lifetime Value (LTV) to CAC Ratio

A third crucial benchmark is the LTV to CAC ratio, which measures the lifetime value of a customer relative to the cost of acquiring them. According to Narayanan, a 5:1 ratio is considered strong, meaning the revenue a customer generates over their lifetime is five times the cost of acquiring them. “This ratio can signal whether you’re spending too much on acquisition or if there’s room to invest more aggressively in marketing efforts,” he explained.

Tracking this ratio helps marketing leaders understand the long-term value of their customer relationships and whether their marketing investments are sustainable. If the LTV to CAC ratio is too low, it suggests that marketing dollars aren’t being spent efficiently, and the company may need to re-evaluate its customer acquisition strategies. 

Conversely, a high ratio may indicate that the company can afford to spend more on marketing to accelerate growth. Additionally, the LTV to CAC ratio provides insight into customer retention and loyalty, which are critical drivers of profitability in the long term.

Narayanan emphasized that combining these benchmarks—pipeline velocity, CAC payback period, and LTV to CAC ratio—gives CMOs a comprehensive view of both the short-term impact of marketing efforts (pipeline velocity) and the long-term sustainability of customer acquisition (CAC and LTV ratios). 

Together, these metrics offer a clear picture of how well marketing is driving growth and contributing to the overall success of the business.

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3. Strategies for Building Credibility with the C-Suite

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Establishing credibility with the C-suite is one of the most critical responsibilities of any marketing leader, especially when securing a budget for long-term initiatives like brand development or demand generation. 

The ability to communicate the impact of marketing in a way that resonates with executive decision-makers is often the difference between a CMO’s success or failure. Below are several strategies that can help marketing leaders bridge the gap and build much-needed trust with CEOs, CFOs, and other executives.

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Speak the Language of the Business

One recurring theme throughout the conversation was the importance of translating marketing metrics into business terms. Hassam illustrated this point perfectly: “Instead of saying, ‘We’ll increase website traffic by 30%,’ explain how a $50K investment in the website will generate 10 new qualified leads, of which three will likely convert, contributing $6M to the revenue target.” 

The most common barrier to CMO credibility is a disconnect in the language used. Marketing leaders need to show the direct impact of their efforts on pipeline growth and revenue. The executive team cares about business outcomes—how marketing activities translate into revenue, profitability, or cost-efficiency. This business-first approach shows that marketing is not just a cost center but a growth driver with measurable outcomes tied directly to the company's bottom line.

CMOs need to position themselves as strategic partners within the company, not just as marketing specialists. This means understanding and contributing to overall business strategy, including product development, go-to-market strategies, and long-term growth initiatives. 

Wong pointed out that a good CMO should act as a business strategist, helping shape not just the marketing plan but the overall company direction. When marketing leaders demonstrate a deep understanding of the company’s financials, customer base, and competitive landscape, they can offer more meaningful insights during executive discussions.

CMOs who can connect marketing activities to overarching company goals will be seen as indispensable members of the executive team, with the credibility to advocate for the resources needed to succeed.

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Create Multiple Scenarios

Another critical strategy for building credibility is to present the executive team with data-backed budget scenarios that outline different possible outcomes based on varying levels of investment. Narayanan suggested that CMOs build three budget scenarios: conservative, realistic, and aggressive. Each scenario should map out the potential ROI and the business impact marketing can deliver under different funding levels.

• A conservative scenario might show what marketing can achieve with the current budget or a slight increase, emphasizing stability and maintaining the status quo. 
• A realistic scenario might involve moderate budget increases and demonstrate more significant gains, such as expanding market share or increasing qualified leads by a higher percentage. 
• The aggressive scenario, requiring the most significant investment, can showcase how an ambitious marketing strategy could lead to exponential growth, brand dominance, or significant demand generation. 

By laying out a spectrum of potential outcomes, marketing leaders can guide executive decision-making while setting realistic expectations. Narayanan added that "setting a clear foundation of how much budget is needed and what kind of ROI to expect is the only way to avoid setting the company up for failure."

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Align Marketing with Sales

Wong and Narayanan both emphasized the importance of aligning marketing with sales. The CMO and CRO (Chief Revenue Officer) must work closely together to advocate for a unified budget. Marketing and sales are often seen as separate entities, but as Wong points out, a CMO’s strongest advocate should be the CRO or Chief Sales Officer (CSO), as their success is inherently tied to the quality and quantity of leads generated by marketing.

When marketing and sales are aligned, they can present a joint case to the C-suite for budget increases, showing how marketing investments lead to sales outcomes. This alignment not only increases trust but also ensures that marketing efforts are optimized to directly impact sales metrics like pipeline growth and win rates. 

Wong noted that when the CRO and CMO advocate together for a budget, the executive team is much more confident in marketing’s ability to deliver. A joint budget is often easier to get approved because it shows that the two key revenue-driving departments are aligned and working toward the same goals.

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4. Tools to Track ROI (Even for Small Teams)

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You don’t need a complex tech stack or a massive team to measure marketing impact effectively. What’s crucial is having the right processes in place and utilizing the tools that provide sufficient insights without overcomplicating the workflow. 

Narayanan advised those working with smaller marketing teams to avoid getting bogged down by overly complex tools. He argued that many marketers are tempted to invest heavily in the latest MarTech software, thinking that complexity will provide better insights. In reality, smaller teams often benefit from simplicity. 

The goal, he explained, should be to find “good enough” solutions to track key metrics, rather than aiming for perfection. “Don’t waste precious time perfecting dashboards; instead, focus on creating demand and running campaigns that drive results,” he said.

For many small teams, Google Analytics is a go-to tool for tracking website performance, visitor behavior, and conversions. It's a robust platform for understanding which channels are driving traffic and how visitors are engaging with your content. 

Additionally, custom-built Excel dashboards or Google Sheets can provide a cost-effective way to track metrics over time. Many marketers create simple yet powerful dashboards that consolidate performance data from different channels like email marketing, paid ads, and organic search. You don’t need advanced software to calculate metrics like Customer Acquisition Cost (CAC), Lifetime Value (LTV), or Return on Ad Spend (ROAS); often, all it takes is plugging your numbers into a well-structured spreadsheet.

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CRM Platforms: HubSpot for Scaling Impact

Once a team starts scaling, it might be time to graduate from basic tracking tools to more comprehensive solutions. HubSpot, for instance, is a popular choice among small and mid-sized businesses due to its ease of use and built-in marketing, sales, and CRM functionalities. HubSpot’s ROI tracking capabilities allow teams to connect their marketing efforts directly to revenue, providing insights into lead generation, conversion rates, and overall campaign effectiveness.

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Automating Reporting with Data Visualization Tools

As marketing efforts expand, data visualization tools like Google Data Studio or Tableau can help teams turn raw data into easily digestible reports. For a small team, manually creating reports on a weekly or monthly basis can be time-consuming, but tools like these can automatically pull data from various sources and update it in real-time. This not only saves time but also provides a clear, visual representation of key performance indicators (KPIs) that can be shared with the executive team.

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Avoid the MarTech Trap

Narayanan also warned against falling into what he referred to as the “MarTech trap.” This happens when small marketing teams overinvest in technology, hoping that more tools will deliver better insights. However, complex tools often require significant time and resources to manage, and many teams don’t need the bells and whistles offered by enterprise-grade solutions.

Rather than spending time and money switching between platforms, the focus should be on optimization and execution. As Narayanan put it, “You don’t need a multi-touch attribution tool if it’s not going to help you make better business decisions.” For smaller teams, it’s often more valuable to focus on improving content, driving demand, and refining messaging rather than getting caught up in the minutiae of tech-heavy platforms.

When teams prioritize efficiency and clarity, they set themselves up for sustained success, regardless of size or budget.

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Conclusion: The Long and Short of ROI

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Marketing leaders often find themselves caught between short-term revenue pressures and long-term brand-building goals, and navigating this balance is crucial for sustaining both credibility and results.

On the short-term front, the return on marketing investment needs to show immediate contributions to pipeline growth and revenue. Marketing leaders can align their efforts with immediate business goals by focusing on metrics that speak directly to sales and revenue impact. This alignment not only secures buy-in from the C-suite but also enables marketing to function as a strategic partner, not just a cost center.

At the same time, marketing leaders cannot afford to ignore brand-building's long-term value. Building a brand, nurturing customer relationships, and fostering loyalty may take months or even years to fully materialize. However, when executed correctly, these efforts lead to exponential returns—as Koch pointed out, long-term customers often become brand evangelists, creating a network effect that amplifies growth beyond what any paid campaign can achieve. 

The most successful marketing leaders will adopt a holistic approach to ROI—one that showcases quick wins while laying the foundation for sustainable growth. By keeping both short- and long-term goals in sight, CMOs can make a compelling case for continuous marketing investment, even during financial uncertainty.

For CMOs to secure their seat at the executive table, they must continuously educate their teams—and their stakeholders—on how marketing is both a revenue driver today and a growth engine for tomorrow.

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