What Is Marketing ROI?
ROI = (Revenue from Marketing - Cost of Marketing) / Cost of Marketing. Simple formula, but measuring it accurately requires tracking the right metrics across the right channels.
Key Metrics to Track
- Cost Per Lead (CPL): Total campaign cost divided by number of leads generated
- Conversion Rate: Percentage of visitors who take the desired action
- Customer Acquisition Cost (CAC): Total marketing spend to acquire one new customer
- Lifetime Value (LTV): Total revenue a customer generates over their relationship with you
- Return on Ad Spend (ROAS): Revenue generated per dollar spent on advertising
Maximizing ROI
- Focus on high-intent channels: SEO and Google Ads target people actively searching for your services
- Optimize landing pages: Small conversion rate improvements compound into significant revenue gains
- Retarget visitors: Most people don't convert on their first visit. Retargeting brings them back
- Track everything: Use analytics, call tracking, and CRM to attribute leads to specific campaigns
- Test and iterate: A/B test headlines, offers, and ad copy. Data beats assumptions