Analytics & Marketing MetricsMetrics

Calculate Marketing ROI Based on These 3 Metrics

Among all the return of investment measurements, marketing ROI is the hardest to measure. Why, you ask? You do not get immediate revenues in these areas. You gradually earn it when you start garnering some reputation among the customer base. In this article at, Samuel Thimothy talks about three metrics that can help you calculate marketing ROI.

Measuring Your Marketing ROI

Have your clients asked about the marketing ROI of a campaign? The catch is, you cannot set a rigid timeframe because it is the audience that needs to be interested in your offerings. Without further ado, let’s dive into the three metrics that Thimothy suggests you should try to calculate the marketing ROI:

Conversions Per Campaign

Marketing ROI does not always mean cashflow. Your visitors to the landing page would explore the page and go through the several offerings. That is the engagement you want from them on the first visit. Since sales is your end goal, sprinkle actionable buttons like newsletter subscription form, free trial offers, or a social media RSVP button. Their response to these features increases your conversions per campaign.

Customer Acquisition Cost (CAC)

Though you might get several conversions from the same customers, you cannot be sure if they would buy the product. This metric enables you to decipher how much you have spent against the number of customers you have acquired. Use the formula below to measure the marketing ROI:

CAC = Total Marketing Cost / Total Customers Acquired

Customer Lifetime Value (CLV)

If your marketing strategies are working fine, your longstanding consumers would consistently produce good marketing ROI. The customer lifetime value metric calculates the amount of revenue customers are bringing to your sales funnel. The money you spend on a new buyer is less than the existing one. So, your goal should be to retain a higher outcome for a positive marketing ROI.

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