Increasing your MROI is all about either increasing your incremental revenues (most commonly, Monthly Recurring Revenues, or MRR) or reducing the expenditures (most commonly, marketing and support costs) required to achieve these revenue gains.<\/p>\n If you can succeed with this, you\u2019ll shift your leadership team\u2019s mindset from a focus on cost (which our brains associate with pain) to a focus on investment (which our brains associate with gains).<\/p>\n Looking for tools and templates to plan, manage, and optimize your marketing funnel. Marketing today must be data-driven, and that means applying analysis and customer insights across the full stack of your marketing activities.<\/p>\n Our RACE Framework empowers marketing leaders to streamline and integrate their marketing planning. Through RACE you can view your marketing activities through the eyes of your customers, through their journey from discovery to repeat purchase and advocacy. The RACE Framework enables marketers to prioritize their key customer journeys, and make decisions in real-time based on primary data.<\/p>\n If you're looking to identify new opportunities for your omnichannel customer lifecycle, identify your strengths and weaknesses, and accelerate your ROI, the RACE Framework is for you. Book a free 1-2-1 consultation call to discuss your marketing strategy in the context of RACE and get your next step, no-obligation, strategic recommendations from an expert. Book your free 1-2-1 consultation to develop your new strategy with the RACE Framework<\/p>Book consultation<\/a><\/div> Here are the ROI calculators for each of your acquisition marketing channels that you\u2019ll need to achieve this strategic shift in your marketing funnel.<\/p>\n When it comes to acquisition, most \u2018small-b brand\u2019 digital companies (not recognized on a global level) mostly rely on SEO (organic) traffic and PPC (paid) channels to drive traffic to their sales pages, so I\u2019ll start with those ROI calculations.<\/p>\n Two commonly-used metrics for PPC campaigns are return on ad spend (ROAS) and profit per impression\/click (PPI\/PPC). After defining each, I\u2019ll explain why they are not the best measures of PPC campaign performance.<\/p>\n ROAS is simply PPC Revenue minus PPC Cost, divided by PPC Cost, usually shown as a percentage. For example, if your sales from a PPC campaign are $1,500, and you paid $500 for PPC clicks, your ROAS would be 2.0, or 200%.<\/p>\n Marketing vendor, HubSpot provides a ROAS calculator<\/u><\/a> based on data including Monthly Ad Budget, Expected CPC, Target Conversion Rate, Average Sales Price, and Lead-to-Customer Rate.<\/p>\n The \u2018profit per\u2019 metrics take a holistic view of the acquisition and conversion process. Conversions don\u2019t happen on their own; they require the right keywords, creating effective ads, and getting clicks at a reasonable cost.<\/p>\n The Profit per Impression\/Click calculation is a bit more involved. You\u2019ll need impressions, clicks, total cost, and total sales value. To calculate profit per impression, divide profit by impressions. For-profit per click, divide profit by clicks.<\/p>\n While ROAS and PPI\/PPC are a good (and easy) place to start, they\u2019re not accurate ROI measurements. Why?<\/p>\n Because PPC clicks aren\u2019t the only costs for these campaigns. In e-commerce, there are manufacturing costs, marketing costs, and fulfillment costs. There are credit card processing costs and return processing costs. If you have a support team, there are also customer service costs.<\/p>\n In a lead-generation context, you have the costs of salespeople following up on leads, and the costs of marketing automation apps (such as email and CRM), among others. Other \u2018hidden\u2019 costs also apply, such as sales operation inefficiencies.<\/p>\n To calculate a true ROI for your PPC efforts, you need to include all applicable costs incurred in converting prospects into leads and customers. You need to estimate and include:<\/p>\n On the revenue side, you need to include revenues resulting from both direct and assisted conversions (more on those below).<\/p>\n Once you have your best PPC-related cost and revenue estimates, feed these values into the above MROI calculation.<\/p>\n SEO (organic) traffic is the cheapest over the long term. So, to get the highest ROI from your SEO efforts, you\u2019ll want to drive high volumes of well-targeted traffic to your landing pages.<\/p>\n But measuring SEO performance is complicated. Say, for example, someone searched for a keyword, came to your site, bounced away after two seconds, then walked into your physical store to purchase something. You can\u2019t just attribute that customer to your organic search because you\u2019re not sure what, exactly, caused the conversion. That\u2019s the attribution problem. Doing this analysis can take a lot of time.<\/p>\n Thankfully, the ROI calculation for e-commerce sites has been made easier with Google Analytics (GA). Adam Frankel from SEMRush details the six steps you should follow<\/u><\/a> to set up conversion - and the associated ROI - tracking in GA.<\/p>\n For e-commerce sites, you just need to set up business goals in GA, insert tracking code into your product pages, then set revenue values for each product SKU. GA will calculate the resulting ROI.<\/p>\n For non-e-commerce sites, the revenue value is the value of each sales-qualified lead (SQL). Start by talking to your salespeople to estimate the value of each marketing-qualified lead (MQL) you pass along to them. If they consider only 20% of these to be \u2018target customers, primed for sale,\u2019 you\u2019ll need to reduce that lead to revenue value by a factor of five. You\u2019ll want to bump up this lead value to increase your SEO-related ROI.<\/p>\n Lots of recent statistics<\/u><\/a> prove that content marketing - if executed well - works. But these stats don\u2019t show the actual ROI achieved from these efforts. As with the SEO marketing ROI calculator, GA comes to the rescue.<\/p>\n First let me define Content Marketing ROI: a percentage that expresses how much revenue you gain from content marketing in comparison to what you spend on creating and distributing that content.<\/p>\n On the cost side you need to figure out:<\/p>\n On the revenue side, sometimes there\u2019s a direct link between your content and conversion, like when a prospect views a blog, clicks on your call to action, then buys something. But other times the click-sales connection isn\u2019t direct.<\/p>\n Say, for example, a visitor reads one of your blogs they found via Google, then leaves your site to do some comparison shopping, and returns the next day to make a purchase. You can\u2019t track that conversion with just (within-session) e-commerce tracking enabled in GA.<\/p>\n Fortunately, you can track this through GA with Assisted Conversions<\/u><\/a>. Assisted Conversions measures the number of conversions that a channel contributed to, at any point along the customer\u2019s journey.<\/p>\n To do this in GA, go to Conversions > Multi-channel Funnels > Assisted Conversions. Click on a channel and look at the Click Direct Conversion Value column to see how much revenue it generated, both directly and indirectly.<\/p>\n Use this handy, free tool from GA to ensure your marketing ROI calculator is taking all conversions into account rather than just direct conversions.<\/p>\n ROI has always been harder to calculate on social media. That\u2019s mainly a) due to the attribution problem I mentioned earlier, and b) since likes and shares don\u2019t directly result in revenues.<\/p>\n Findings from the Gartner CMO spend survey 2020-2021<\/a> found that during the early months of the pandemic, consumers flocked online for information, entertainment and connection, and that trend will continue. Digital channels account for almost 80% of budgets in 2020.<\/p>\n CMOs spend nearly one-quarter (22%) of the marketing budget on digital advertising (13.5%) \u2014 including display, video or ads on social media or on platforms like Amazon \u2014 and paid search. Another 59% goes to owned and earned digital channels such as social marketing, the website, SEO and mobile marketing.<\/p>\n The Gartner survey findings reveal that 62% of CMOs expect total media spend to bounce back in 2021. Marketing leaders are confident about the outlook for paid media in the coming 12 months.<\/p>\n![\"Marketing](\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2019\/06\/Marketing-Return-on-Investment-700x173.png\")
<\/a><\/p>\nLooking for strategic marketing planning advice?<\/h3>\n
![\"Omnichannel](\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/12\/RACE-icon-1.png\"){kind=icon}
<\/a><\/p>\nNeed a winning marketing strategy?<\/h3>
![\"Grow](\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/07\/Build-x2.png\")
<\/div><\/span><\/p>\nAcquisition-related marketing ROI Calculators<\/h3>\n
PPC ROI calculators<\/h3>\n
Return on Ad Spend (ROAS)<\/h4>\n
Profits per impression \/ click (PPI \/ PPC)<\/h4>\n
The problem with ROAS and PPI\/PPC<\/h4>\n
PPC ROI is what matters<\/h4>\n
\n
SEO ROI calculator<\/h3>\n
Content marketing ROI calculators<\/h3>\n
\n
![\"marketing](\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2019\/06\/Assisted-conversions-analytics-700x252.png\")
<\/a><\/p>\nSocial media ROI calculators<\/h3>\n