Marketing ROI Calculator
Prove that digital marketing delivers ROI and see how inboind marketing can improve your revenue
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Just 3 Simple Steps
Use this marketing ROI calculator to show how return on investment is impacted by various digital marketing factors.
Fill in ALL yellow fields
Hit the Calculate button
Check the results and email yourself
Here is the explanation of terminology used in this marketing ROI calculator
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Annual recurring revenue per customer or order value
This is how much revenue you generate per new customer
How many new customers do you want this year
What is your new business target for the next 12 months?
Visitor to MQL rate (your campaign conversion rate)
MQL stands for marketing-qualified leads. Let’s imagine you’re a SaaS company and you rely on demos to get new signups. If 1000 people visit your website and 100 of them fill out a demo request form, your conversion rate is 10%
MQL to SQL rate
SQL stands for sales-qualified leads. If your marketing department delivers 100 new leads to the sales team and they disqualify half of them (fake details, duplicate details etc.) that’s a MQL/SQL rate of 50%
SQL to deal rate
Now imagine your sales team works on the remaining 50 good leads. What proportion can they convert to sales? If they get 10 sales, that’s an SQL/deal rate of 20%
IMPORTANT: If you run an online shop
or other type of business where website visitors convert instantly (i.e. online purchase), put your conversion rate in the ‘Visitor to MQL rate’ field and put 100 in both the MQL/SQL and SQL/deal fields
Adwords CPC in your industry (average £2 to £8)
If you know your average cost per click or cost per action, put it here. It doesn’t matter whether it’s Adwords or other paid leads channel
Adwords CPC campaign management cost per month
If you hire an agency or an in-house advertising specialist, put his monthly wages here
Your predicted monthly investment in inbound marketing
If you have a member of staff running a company blog and looking after your social media accounts, put his monthly wages here. Put 0 if you don't do inbound. Also try increasing the inbound budget and watch the customer acquisiton cost go down
Explanation of the ROI Results Section (Green)
If you’ve filled in all the yellow fields of this marketing ROI calculator and hit the Calculate button, you will notice that the green section is filled with data. This is how to interpret the calculator answers. If you’re in doubt during any part of the process, please don’t hesitate to call us on 07777 655 204 and we will talk you through the confusing bits.
Your customer acquisition cost
This is how much it costs to close one successful deal. Make sure you're happy with the profitability level
Visitor acquision cost
This is how much you pay to get one visitor check your site
MQL cost
This is how much you pay to generate one basic lead through the website
SQL cost
This is what a fully qualified lead cost your business
Visitor target
This many visitors you will need to attract to the website in the next 12 months to reach your sales target
Your Return on Investment (ROI)
If your ROI is 5:1 it means you generate £5 in revenue for every £1 you spend on marketing. If you can exceed 5:1, pat yourself on the back
Funnel Conversion Rate
This visualises your road from visitor to MQL to SQL and to a closed sale. If you're an online shop, your funnel conversion equals your conversion rate
How to Improve your Marketing ROI
Did the calculator come back with shocking results?
Digital marketing can take your business from a one-man band to a national powerhouse regardless whether you’re in a B2C or B2B sector. Most buying decisions are now made online. The key to setting up a successful strategy is to model your digital marketing ROI to make sure you will stay profitable for the amount of money you spend on marketing.
If your current marketing ROI calculator results came back disappointing, there is a lot that can be done. For example, if you sell a product at £200, you predict 1000 online sales next year and your website converts at 5%. It turns out your ROI is just 2.5:1 which sounds like you’re not going to make that much of a profit.
What would happen if you redesign your landing pages and achieve a 7.5% conversion rate? Suddenly your ROI jumps to 3.75:1 and your sale acquisition cost drops from £80 to £53. And this is without making any changes to budgets.
At White Cat SEO, our mantra is – make sure your landing pages convert as good as they can. Who wouldn’t want to make more sales from the same amount of traffic?
Want to discuss how we can help improve your ROI? Fill in the form to request a callback:
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