Successfully calculating ROI helps companies determine the value of marketing efforts today and in years to come.

ROI: The king of all marketing efforts

Getting started: 5 steps to measuring ROI

Return On Investment (ROI)

Are your marketing efforts paying off?

ROMI of content marketing: How is your content marketing doing?

Brand valuationassessment of brand’s value

Customer lifetime value (CLV)assessment of each customer’s value

Marketing mix modeling (MMM)assessment of sales volume

effectiveness, efficiency and ROI of each marketing element

Ad campaign cost: $1,000

Sales increase: $3,000

Gross sales margin: $2,000

$2,000 Gross sales margin

$1,000 Ad campaign cost

200% ROMI

Short-term ROMI: How is your ad campaign

doing right now?

Long-term ROMI: What can you expect in the upcoming months or years?

Return on marketing investment (ROMI)Measures dollars of revenue for dollars of marketing spent.

Common ROI Calculations

Sources

1. Jensen, Sylvia. “4 Ways of Measuring Marketing ROI.” It’s All About Revenue The Revenue Marketing Blog RSS. N.p., 26 Nov. 2012. Web. 18 Dec. 2013. <http://blog.eloqua.com/measuring-marketing-roi/>.2. “Study Finds Marketers Struggle with the Big Data and Digital Tools of Today.” PRNewswire N.p., 12 Mar. 2012. Web. 19 Dec. 2013. <http://www.prnewswire.com/news-releases/study-finds-marketers-struggle-with-the-big-data-and-digital-tools-of-today-142312475.html>.3. Miller, Jon. “How to Measure the ROI of Your Marketing Programs.” Marketo Marketing Best Practices and Thought Leadership. N.p., 14 Mar. 2013. Web. 18 Dec. 2013. <http://blog.marketo.com/blog/2013/03/how-to-measure-the-roi-of-your-marketing-programs.html>.4. Rogers, David, and Don Sexton. Marketing ROI in the Era of Big Data:. Rep. Columbia Business School, 2012. Web. 19 Dec. 2013. <http://www4.gsb.columbia.edu/null/2012-BRITE-NYAMA-Marketing-ROI-Study?exclusive=filemgr.download>.

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ROI is the primary measurement of marketing effectiveness, yet…

28% base marketing budgets

on gut instinct

57% do not use ROI analysis to

determine marketing budgets

70% say their marketing efforts

are under increased scrutiny56%

say they’re ill-equipped to manage ROI

The challenges of measuring ROI

External factors likeeconomic trends, weather,

quality of sales rep

Marketing programs influence individuals

differently

Multiple touches are required to convert a lead

Knowing when to measure

Step 1: Define successDefine your company's key performance indicators (KPIs)

Step 2: Set goalsEstablish realistic and measurable goals

Step 3: Gather dataIntegrate departmental data to get the big picture

Step 4: Monitor goalsMonitor KPIs weekly to stay on track

Step 5: Use it or lose itUse data to make decisions and justify budgets

conversions,

# of subscribers,

user signups,

sales

Know what you are measuring:

Use proxies to monitor how your content resonates with readers:

likes, retweets, shares, followers, average pageviewsquality of lead, retention

period, lifetime value per lead,length of sales cycle

Measure secondary conversion indicators: