• by Chris Novak , February 10, 2025

In early growth stages, marketing and business outcomes often move in lockstep. A Facebook campaign might yield impressive clicks and conversions, translating to top-line revenue growth. When marketing works, the correlation is easy to understand. Platform metrics like ROAS (return on ad spend) and CTR (click-through rate) are reliable indicators of success.

However, these metrics can create a false sense of security as businesses scale. Platforms may report glowing numbers even as growth stalls, leaving businesses searching for answers and struggling with organizational mistrust.

Why Marketing Metrics Work Early On

For early-stage businesses, there is more simplicity; every dollar spent can deliver measurable, immediate results. If a campaign generates high engagement on social media, the uptick in website visits, email signups, or purchases is easy to track. Metrics like CPA (cost per acquisition) and ROAS capture the connection between marketing activity and growth. 

When the Relationship Breaks Down

Yet, as businesses grow, the correlation between marketing and business outcomes begins to break, with several contributing dynamics:

Saturation of existing audiences: Marketing budgets may no longer influence business performance. Reaching 100,000 people with a $2 million budget might feel impressive, but it’s not if the business’s total addressable market (TAM) includes millions of potential customers.

Diminishing returns on retargeting: Marketing efforts often focus on retargeting existing customers or high-lifetime-value cohorts. While this can improve retention, it limits the opportunity for incremental growth. Businesses often realize too late that converting 100% of their current customers delivers only marginal gains, underscoring the need to target new audiences.

A mismatch between platform metrics and reality: Platforms might continue reporting strong performance—but these don’t always correlate with business success. ROAS can remain positive while revenue stagnates because it doesn’t account for market conditions, audience saturation, or business scale.

The Cost of Misalignment

When marketing outcomes and business results diverge, the CFO starts questioning the ROI of marketing investments, and the CEO wonders if marketing is just another cost center. These doubts can undermine marketing’s credibility and erode alignment across departments.

Adopting New Frameworks and KPIs

When traditional metrics fail, businesses must shift their focus to more strategic, growth-oriented KPIs, including:

Incrementality: Understanding how much additional growth marketing activities generate beyond the baseline. Instead of relying solely on ROAS, a business might analyze revenue lifts in untapped audience segments or light-buyer conversion rates.

Customer penetration vs. TAM: How well does the marketing budget align with the total addressable market?  If growth is stalling, it may be because campaigns are focused on the current customer base instead of reaching new segments. 

Brand health metrics: Long-term growth often depends on metrics like consideration, purchase intent, and brand association. These indicators help ensure the brand remains competitive, even in markets where short-term conversion campaigns have plateaued. Some businesses may need to invest in these metrics now, even if the payoff isn’t immediate.

Aligning Marketing with Business Goals

The key to sustained success is recognizing when your business has reached an inflection point and adjusting your marketing strategy accordingly. This involves moving beyond traditional platform metrics and adopting a more strategic approach focusing on incremental growth, market expansion, and brand health —and rebuilding the organizational trust needed to achieve those goals.