Marketing Analytics for CPG Brands: A How-To Guide to Metrics That Matter

Whether you're selling beverages, supplements, snacks, or skincare—marketing analytics is your unfair advantage. In a category where margins are tight and competition is everywhere, understanding your numbers isn’t just smart—it’s essential.

Here’s a beginner-friendly guide to the key metrics every CPG brand should know, why they matter, and how to start making smarter, more profitable decisions.

1. CAC (Customer Acquisition Cost)

What it is: How much it costs to acquire a single new customer
Why it matters: High CAC eats into margin. You need to know what you're paying to grow.

How to interpret it:

• CAC should be benchmarked against LTV (lifetime value).

• A healthy CAC:LTV ratio is typically 1:3 or better.

• Track CAC by channel and campaign—not just blended.

2. LTV (Customer Lifetime Value)

What it is: The total revenue you expect from a customer over their lifetime
Why it matters: Helps you understand how much you can afford to spend on acquisition.

How to interpret it:

• Use cohort analysis (e.g., customers acquired in January)

• Track LTV over 30, 60, 90, and 180-day windows

• Consider product mix, subscription behavior, and repeat rates

3. Repurchase / Retention Rate

What it is: The % of customers who come back and make another purchase
Why it matters: Acquisition is expensive. Retention is where profit lives.

How to interpret it:

• Look at retention curves by channel, product, and offer

• High CAC + low retention = a leaky bucket

• Track your most "sticky" offers and customer segments

4. MER (Marketing Efficiency Ratio)

What it is: Total revenue ÷ total marketing spend
Why it matters: It gives you a high-level view of marketing efficiency across all channels.

How to interpret it:

• A good MER target for most CPG brands is 2.5–3+

• MER helps when attribution is fuzzy (like with podcasts or TV)

• Use MER alongside CAC and LTV to build a full picture

5. Attribution Windows & Source of Truth

What it is: How you assign credit for conversions
Why it matters: It affects every other number you report on.

How to interpret it:

• Align teams on a single source of truth (GA4, Northbeam, Rockerbox, etc.)

• Know your attribution window (e.g., 7-day click vs. 1-day view)

• Layer in qualitative data (like post-purchase surveys) to supplement what pixels miss

Starter Tools to Explore

• Google Analytics 4: Free and great for site behavior

• Northbeam or Triple Whale: Attribution & media mix clarity

• Peel, Daasity, or Looker Studio: For cohort and LTV reporting

• Post-purchase surveys (e.g., KnoCommerce): Great for offline attribution

Final Thoughts

Marketing analytics doesn’t have to be overwhelming. Start with a few core metrics, build muscle around interpretation, and layer in complexity as you scale.

In CPG, your gut is good—but your data should be better.