Measuring the ROI of a campaign with other tools
Posted: Sat Jan 04, 2025 7:16 am
In the examples above, we mainly based our calculations on revenue growth. However, there are other "metrics", other calculation methods, which can reflect the results of a marketing campaign. On the web, most campaigns aim to increase the number of "leads". A lead is an anglicism that could be defined as a commercial contact intended to produce a given conversion on your site. For example, if you launch a marketing campaign to promote your newsletter, you will collect a "lead" each time a user subscribes to your newsletter, via your campaign. There are many tracking tools that can help you determine your number of leads. Google Analytics remains a benchmark in terms of tracking, and if you use emailing solutions, they most certainly offer tracking tools to evaluate the ROI of your email panama campaigns. The real difficulty when it comes to calculating the ROI of lead campaigns is not so much identifying the number of sales contacts acquired through your campaign, but rather quantifying them economically. What value do you attribute to your “lead”? €5? €20? It all depends on your activity, your product, etc.
Once you have assigned a value to your lead, you simply need to take the previous formula, simply replacing “Increase in turnover” with the value generated by your leads. If, for example, your €500 marketing paraguay whatsapp list campaign allowed you to generate 60 leads, quantified at €20 each, you get an ROI of 140%. This means that for €1 spent on marketing, you have recovered €1.40. The whole art of this method lies in the correct evaluation of the value of your lead.
To go further
Web marketing is a particularly vast subject! If the subject interests you, here are other complementary resources:
Internalize or outsource your site's web marketing operations. How to choose?
Inbound vs Outbound Marketing – Which Marketing Strategy for Your Project?
Influencer Marketing: Carefully Identify and Solicit Influencers in Your Field
What is a good ROI in marketing?
The income/cost ratio
We have already used it in the previous part, the revenue to cost ratio is easily calculated from the ROI, and answers the following question: for one euro spent on marketing, how much did I earn? For example, if your activity generated 5€ of sales for 1€ spent on marketing, your revenue/cost ratio would therefore be 5:1. This example is not entirely random, since a revenue/cost ratio of 5:1 is considered a good ROI for most commercial activities. A ratio of 10:1 is considered exceptional in marketing and, as such, should not be considered as a goal to achieve. If your revenue/cost ratio is between these two values, you can be satisfied with your campaign. On the other hand, if you do not reach the 5:1 ratio, it is very likely that your campaign is barely profitable, or even that you are losing a little money. So we advise you to be vigilant about your revenue/cost ratio, and always try to aim for a minimum of 5:1. Ratios have the advantage of being easy for you and your marketing teams to understand and interpret, which is why we believe they are a good KPI to implement.
Once you have assigned a value to your lead, you simply need to take the previous formula, simply replacing “Increase in turnover” with the value generated by your leads. If, for example, your €500 marketing paraguay whatsapp list campaign allowed you to generate 60 leads, quantified at €20 each, you get an ROI of 140%. This means that for €1 spent on marketing, you have recovered €1.40. The whole art of this method lies in the correct evaluation of the value of your lead.
To go further
Web marketing is a particularly vast subject! If the subject interests you, here are other complementary resources:
Internalize or outsource your site's web marketing operations. How to choose?
Inbound vs Outbound Marketing – Which Marketing Strategy for Your Project?
Influencer Marketing: Carefully Identify and Solicit Influencers in Your Field
What is a good ROI in marketing?
The income/cost ratio
We have already used it in the previous part, the revenue to cost ratio is easily calculated from the ROI, and answers the following question: for one euro spent on marketing, how much did I earn? For example, if your activity generated 5€ of sales for 1€ spent on marketing, your revenue/cost ratio would therefore be 5:1. This example is not entirely random, since a revenue/cost ratio of 5:1 is considered a good ROI for most commercial activities. A ratio of 10:1 is considered exceptional in marketing and, as such, should not be considered as a goal to achieve. If your revenue/cost ratio is between these two values, you can be satisfied with your campaign. On the other hand, if you do not reach the 5:1 ratio, it is very likely that your campaign is barely profitable, or even that you are losing a little money. So we advise you to be vigilant about your revenue/cost ratio, and always try to aim for a minimum of 5:1. Ratios have the advantage of being easy for you and your marketing teams to understand and interpret, which is why we believe they are a good KPI to implement.