How many times have you run marketing campaigns and had zero idea the impact that it is having on your bottom line?
In this day and age, where everything is measurable, the answers to your marketing ROI should be at your fingertips.
So say you get 100 leads per month and you close 5 sales your close rate is 5%.
That means if you want 10 sales per month you will need 200 leads on average to close 10 sales.
(its not always linear, but a good way to set goals)
Maybe your cost per lead is $60 dollars or Maybe its $30.
Multiply that cost per lead by the number of leads you need to achieve your close rate, and you have your budget.
From here there are different leavers to pull – WE HAVE A baseline…
Good marketing companies will test things and help you reduce the cost per lead and give you more leads for your budget. This puts you in a better position to close more sales.
Or if that doesn’t work you can simply raise your budget to get more leads.
Alternatively, you and your sales team can sharpen your sales process and close a higher percentage of incoming leads.
At the end of the day, your total marketing investment divided number of sales will give you the ROI over a given period of time.
And that’s what’s important in the long run.
We’ve developed an Advertising ROI calculator to make this easier for you.
Plug in your numbers and you’ll be ahead of 99% of your competitors that use marketing as a roulette machine.
So please, don’t fall for fairy dust numbers and sales tactics that promise you the world without the foundations right.
Just understand it can all be worked out pretty simply. It’s not rocket science!
Marketers will throw in all sorts of hopium out there to make you work with them.
If you know your numbers you can set achievable goals, and adjust them based on actual maths, just stick to the course and give it a try.
Link to the calculator below.
P.S. I don’t need your email just enjoy the calculator and show up armed to your next marketing meeting.
If you find any value from it and want some honest advice on whether we can help you achieve your goals, Request a Strategy Session and we can chat.
