Marketing Expense per Marketing Employee

Marketing Expense per Marketing Employee

KPI Details

Marketing Expense per Marketing Employee measures the total expense incurred by the Marketing Department (wages, benefits, overhead, campaign expenditures, etc.) over a certain period of time in relation to the number of employees (company-wide) working in the Marketing Department. Higher than average values for this metric can be indicative of highly manual (i.e., error and rework prone) marketing processes and procedures (e.g., marketing campaigns that are almost completely generated and distributed manually), excessive time spent on low-value work (e.g., printing, scanning, etc.), overstaffing, general inefficiencies within marketing processes (e.g., inefficient email distribution, lead generation research, customer communication management, etc.), and sub-par Marketing employee training and performance. While companies typically seek to streamline operations and employee positions to reduce expenses in the Marketing Department, great care should be taken when doing so as too many layoffs can have a negative impact on company morale.

KPI Definition

The total expense incurred by the Marketing Department (wages, benefits, overhead, campaign expenditures, etc.) over a certain period of time divided by the number of employees (company-wide) working in the Marketing Department.

KPI Best Practices

• Cross-train marketing employees to handle multiple activities across the Marketing Department
• Trace last-minute revisions that lead to cost overruns to their source and determine corrective action necessary to minimize root causes
• Define ownership of activities within processes to monitor effectiveness and minimize duplicate work

KPI Calculation Instructions Marketing Expense per Marketing Employee?

Two values are used to calculate this KPI: (1) the total expense incurred by the Marketing Department, and (2) the number of employees working in the Marketing Department. Include labor (wages, salaries, commissions, benefits), overhead (occupancy, utilities, supplies, advertising, legal fees, travel costs, etc.), technology (hardware, software, end-user operations, etc.) and campaign costs in the numerator. Marketing employees should be counted as any employee whose core job function is related to selling its products or services by identifying consumer needs and, based on those needs, developing, publicizing, communicating and selling their products/services to consumers.

KPI Formula :

Marketing Department Expense / Number of Marketing Employees