Understanding revenue attributed to marketing
It’s easy to feel like marketing costs are out of control, especially when you cannot directly link revenue to your efforts. Use this calculator to get a quick overview of the revenue that is directly attributable to your marketing initiatives. If you would like help calculating your MROI (or to some, ROMI), please click here to email to Cyndie Shaffstall and she will walk you through this exercise step by step. Cyndie will show you how specific changes will impact your bottom line and which of those changes are appropriate for your business.
Scroll to the instructions below the calculator for explanations about each line.
|How many emails/direct mails did you send? (Prospects)|
|How many forms were submitted? (Leads)|
|This is your prospects-to-leads conversion rate|
|Of submitters, how many are qualified leads?|
|This is your lead-to-qualified-lead conversion rate|
|Of the qualified leads, how many are opportunities?|
|This is your qualified-lead-to-opportunity conversion rate|
|Of the opportunities, how many became customers?|
|This is your opportunity-to-close rate|
|How much does the average customer spend?|
|This is your revenue attributable to marketing|
|How much did you spend on this campaign?|
|This is your simple return on marketing investment (ROMI)|
|Or, in layman's terms: You made||for every dollar spent|
Average customer spend
- Think back to your last campaign and in the first row, enter the number of people in your contact list that received your campaign. After assessing your campaign, you might want to see the impact that you could have on your MROI if you were to add more names, for instance, but we’ll get to that later.
- The leads row is how many peopled engaged with the campaign. This might be the number of people who completed a form, downloaded a document, tried the demo, or perhaps, just opened an email or phoned you.
- The percentage of leads compared to prospects is the prospects-to-leads conversion rate.
- Now, give careful consideration to those that became leads. How many of them truly fall within your target audience? In other words, how many are qualified leads? Your company’s criteria for what constitutes a qualified lead might be very strict or very vague. If you became more strict about what is considered qualified, this number should go down. Less strict, and the number should go up.
- The resulting percentage is the leads-to-qualified-leads conversion rate.
- Now, for a closer examination of the individual qualified leads, you need to speak with the sales team. Have them help you distill how many of the qualified leads they deemed as real opportunities and enter that number.
- In this row we can now calculate the qualified-leads-to-opportunities conversion rate.
- Now wrapping up the assessment, how many people from your campaign actually became a customer?
- In this row, we calculate the opportunity close rate.
- To assess the revenue, you must now enter the average amount customers spend and how much you spent on creating the campaign. The rest is pure magic.
Projections and goals
You can also use this calculator to make projections or set goals.
Perhaps you would like to understand the impact of creating a more targeted campaign or higher-value download. In this case, the cost of your campaign will go up, but so should your leads (engagement) rate. If that trickles down through the formula, your ROI will improve. With that knowledge, you could set a goal of doubling the number of people who engage and have Spider Trainers create a fabulous campaign designed to do just that.
This is only one of our calculators, we have several others that will help you to understand your sales funnel top-down and bottom-up. Subscribe now to get the entire suite of MROI calculators.