Field 06

Marketing & Sales

Marketing and sales credentials from CIM, AMA, DMI, HubSpot, SMA and NASP — free to full diploma.

Exam blueprints, week-by-week study plans, formula calculators and frameworks — plus the real cost of every certification in this field.

up to $5,900

6 of 6 certifications

Tools for this field

Run the numbers before you commit to a credential.

Frameworks library

The models examiners expect you to apply, step by step.

AIDA Model

The classic hierarchy-of-effects funnel — Attention, Interest, Desire, Action — used to structure campaigns, landing pages and sales conversations.

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When to use: When designing or auditing a campaign, landing page or outbound sequence, and to locate exactly where the funnel is leaking.

7Ps Marketing Mix

The extended services marketing mix — Product, Price, Place, Promotion, People, Process, Physical Evidence — used to build or audit a go-to-market plan.

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When to use: When launching a product or service, entering a new market, or auditing why an offer with good traffic still fails to convert.

Pirate Metrics (AARRR)

Dave McClure's growth funnel — Acquisition, Activation, Retention, Referral, Revenue — that assigns one measurable metric to each stage of the customer lifecycle.

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When to use: For subscription, app and SaaS growth work — to decide where growth effort actually pays off rather than defaulting to more ad spend.

Formulas library

Every formula with variables, interpretation thresholds and a worked example.

Customer Acquisition Cost (CAC)

CAC = Total sales and marketing spend / New customers acquired

S
Total sales and marketing spend in the period (USD)
N
New customers acquired in the same period (customers)
  • CAC payback < 12 monthsEfficient
  • CAC payback 12-18 monthsAcceptable
  • CAC payback > 18 monthsExpensive

Worked example

A SaaS company spends $180,000 on sales and marketing in a quarter and signs 150 new customers.

CAC = 180,000 / 150 = 1,200

At $150 monthly revenue per customer, payback is 8 months — healthy if churn stays low.

Try: A SaaS company spends $180,000 on sales and marketing in a quarter and signs 150 new customers.

Customer Lifetime Value (LTV)

LTV = Average revenue per account x Gross margin % / Churn rate

ARPA
Average revenue per account per month (USD/month)
GM
Gross margin (ratio)
C
Monthly customer churn rate (ratio)
  • LTV > 3x CACStrong unit economics
  • LTV 1-3x CACThin
  • LTV < CACLosing money per customer

Worked example

ARPA $150/month, gross margin 80%, monthly churn 2%.

LTV = 150 x 0.80 / 0.02 = 120 / 0.02 = 6,000

Average customer lifetime is 50 months; against $1,200 CAC the ratio is a healthy 5:1.

Try: ARPA $150/month, gross margin 80%, monthly churn 2%.

LTV:CAC Ratio

Ratio = LTV / CAC

LTV
Customer lifetime value (USD)
CAC
Customer acquisition cost (USD)
  • Ratio < 1Unsustainable
  • Ratio 1 - 3Below target
  • Ratio ≈ 3Healthy benchmark
  • Ratio > 5Under-investing

Worked example

LTV of $6,000 against CAC of $1,200.

Ratio = 6,000 / 1,200 = 5.0

Above the 3:1 benchmark — the company can increase acquisition spend to accelerate growth.

Try: LTV of $6,000 against CAC of $1,200.

Return on Ad Spend (ROAS)

ROAS = Revenue attributable to ads / Ad spend

R
Revenue attributed to the campaign (USD)
A
Ad spend for the campaign (USD)
  • ROAS < 1Losing money
  • ROAS 1 - 4Marginal to acceptable
  • ROAS >= 4Strong

Worked example

An e-commerce campaign spends $25,000 and drives $110,000 of attributed revenue at 45% gross margin.

ROAS = 110,000 / 25,000 = 4.4; break-even ROAS = 1 / 0.45 = 2.2

Double the break-even threshold — scale the campaign while ROAS stays above 2.2.

Try: An e-commerce campaign spends $25,000 and drives $110,000 of attributed revenue at 45% gross margin.

Conversion Rate

CR = (Conversions / Total visitors or leads) x 100

C
Conversions (purchases, signups, qualified leads) (conversions)
V
Visitors or leads entering the step (visits)
  • E-commerce > 3%Above average
  • E-commerce 1-3%Typical
  • E-commerce < 1%Underperforming

Worked example

A landing page receives 24,000 sessions in a month and produces 660 signups.

CR = 660 / 24,000 x 100 = 2.75

A lift to 3.5% would add roughly 180 signups a month at zero extra ad spend.

Try: A landing page receives 24,000 sessions in a month and produces 660 signups.

Churn Rate

Churn % = (Customers lost in period / Customers at start of period) x 100

L
Customers lost during the period (customers)
S
Customers at the start of the period (customers)
  • < 1% monthlyExcellent
  • 1-3% monthlyAcceptable
  • > 5% monthlyCritical

Worked example

A subscription business starts the month with 3,200 customers and loses 64.

Churn = 64 / 3,200 x 100 = 2.0

Implies a 50-month average lifetime; cutting churn to 1% would double LTV.

Try: A subscription business starts the month with 3,200 customers and loses 64.