Marketing ROI guide for small business

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3/05/2015'

C A L C U L AT E R E T U R N O N I N V E S T M E N T +  Know how much you have spent on your marketing activities. +  You need to consider all costs, such as advertisement rates, printing and design costs, but also consider labour costs (hourly rates including your own), additional resources and equipment required to make your marketing activity happen. +  Compare your costs to how much money (sales revenue and profits) you think can be attributed to your marketing activity and present it in a dollar term to see if it is worth it.

COST PER LEAD/CONVERSION +  I’m going to explain a formula that enables you to allocate a dollar amount to how much it costs to get a new lead and convert a lead. +  This also helps you to identify the proportion of leads you're converting. +  Once you know these figures you can easily set yourself a benchmark and then regularly monitor and measure your success against the figures. +  Your overall aim is to increase the proportion of leads vs conversions, overall number of conversions and decrease the dollar figure per conversion. +  Once you know what dollar figure per customer you're targeting you can also set yourself more realistic marketing budgets. +  Some software programs and analytics programs have built in functionality to measure specific campaigns and their contribution to leads and sales, but this is mainly for online marketing activities and sales.

©'2012)2015'MY'PR'plus'

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