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Let’s start with some good news. Although it can be difficult to calculate a returnon investment for marketing efforts, it’s not impossible. Are you ready for the bad news? It’s a highly data-driven process and there are a lot of ways to do it. Each model and method claims to be the “perfect” solution, but in reality, measuring ROI is far from a one-size-fits-all activity. Your company will need to dig deep and outline exactly what you want to measure in order to be successful.


  • Return On Investment (ROI) Are your marketing efforts paying off? ROI: The king of all marketing efforts ROI is the primary measurement of marketing effectiveness, yet 70% say their marketing efforts are under increased scrutiny 56% say theyre ill-equipped to manage ROI 28% 57% base marketing budgets on gut instinct do not use ROI analysis to determine marketing budgets The challenges of measuring ROI Knowing when to measure Multiple touches are required to convert a lead Marketing programs External factors like influence individuals economic trends, weather, differently quality of sales rep Getting started: 5 steps to measuring ROI Step 1: Define success Define your company's key performance indicators (KPIs) Step 2: Set goals Establish realistic and measurable goals Step 3: Gather data Integrate departmental data to get the big picture Step 4: Monitor goals Monitor KPIs weekly to stay on track Step 5: Use it or lose it Use data to make decisions and justify budgets Common ROI Calculations Return on marketing investment (ROMI) Measures dollars of revenue for dollars of marketing spent. Short-term ROMI: How is your ad campaign doing right now? Long-term ROMI: What can you expect in the upcoming months or years? Ad campaign cost: $1,000 Brand valuation assessment of brands value Sales increase: $3,000 Gross sales margin: $2,000 $2,000 Gross sales margin $1,000 Ad campaign cost 200% ROMI Customer lifetime value (CLV) assessment of each customers value Marketing mix modeling (MMM) assessment of sales volume effectiveness, efficiency and ROI of each marketing element ROMI of content marketing: How is your content marketing doing? Know what you are measuring: conversions, # of subscribers, user signups, sales Measure secondary conversion indicators: quality of lead, retention period, lifetime value per lead, length of sales cycle Use proxies to monitor how your content resonates with readers: likes, retweets, shares, followers, average pageviews Successfully calculating ROI helps companies determine the value of marketing efforts today and in years to come. www.4imprint.com Infographic created by www.4imprint.com, based on the Calculating ROI Blue Paper. Download Blue Paper at: http://info.4imprint.com/bluepapers/calculating-roi/ Sources 1. Jensen, Sylvia. 4 Ways of Measuring Marketing ROI. Its All About Revenue The Revenue Marketing Blog RSS. N.p., 26 Nov. 2012. Web. 18 Dec. 2013. . 2. Study Finds Marketers Struggle with the Big Data and Digital Tools of Today. PRNewswire N.p., 12 Mar. 2012. Web. 19 Dec. 2013. . 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. . 4. Rogers, David, and Don Sexton. Marketing ROI in the Era of Big Data:. Rep. Columbia Business School, 2012. Web. 19 Dec. 2013. . You may reproduce and distribute this infographic in its entirety. You may not create derivative works. (Licensed under the Creative Commons: http://creativecommons.org/licenses/by-nd/3.0/)