Is Your Campaign Working? The Right Way To Calculate The Marketing Return On Investment

Nobody can make an exact formula for perfect marketing strategy with a sure-fire success applicable to all business ventures, it is always different for everyone. It is not an exact science, but any idea can be creatively improved and developed for success. The success of a marketing campaign depends on the response of the market, and also taking into account that the investment for the said campaign does not overtake the profit. That being said, marketing ROI calculator is an essential tool to measure marketing success.

A marketing ROI calculator uses the basic formula from a basic return on investment calculator, but with more variables on the profit and investment side attributed to marketing. But the analysis of the results remains constant. A positive result means that the marketing campaign is a good investment. If the result is zero, it is not necessarily losing but nothing was gained from it either. Financially, nothing was lost but time, resources and effort were spent for nothing, which renders the campaign useless. For a negative result, it is a red flag that the campaign is not only ineffective, the company ends up losing the investment and probably more.

Marketing can be attributed from so many variables, making its ROI calculator overwhelming with so many fields to complete. Note that for marketing, many calculators exist depending on what campaign, and there are a lot of marketing campaigns out there. There is a calculator for Direct Mail or E-Mail Marketing with variables like a number of emails/mail recipients, program cost, responses expected, response rate, conversion rate and average profit per sale. Other calculators simulate potential ROI from inbound marketing via a software with variables like monthly leads, monthly visitors, sales per month and monthly on software fee. It is safe to say that for each marketing program, a new marketing return on investment formula can be derived incorporating its own unique factors as variables. Determining variables and their placement in the formula should be derived carefully to arrive at a credible result. Needless to say, the result needs to be credible as it aids in marketing planning and development and it involves expenditure and directly affects sales and profit.