One of the biggest challenges for anyone in sales or marketing is building a campaign that not only works but that can be tracked and carefully measured. After all, if you’re going to spend money on a new marketing effort, you want to know if you’re making your money back (and then some).

If the time has come to have this conversation with your boss or you are considering new options for your next marketing campaign and want to be sure you can properly estimate future ROI, there are several things to keep in mind.

How Specific Are Your KPIs?

A good marketing campaign is measured based on the leads generated, sales made, and total revenue generated against the cost of the campaign. If you can’t measure those things, any positive results you see are anecdotal at best.

So before you even get a new campaign off the ground, it’s important to set clear KPIs in advance. These should identify not only the direct metrics you want to show growth against, but the indirect ones that will help your brand as a whole over time.

Here are some of the metrics you should be looking at:

  • Customer Acquisition Cost – What is the total average amount of money spent to acquire a new customer. This typically involves a net total of all sales and marketing expenses divided by the number of new customers acquired. If you can safely estimate new customers and marketing cost, this is a good way to show how it impacts the bottom line.
  • Marketing % of Acquisition Cost – What percentage of the total acquisition cost is directed by marketing? Will this increase? If so, will the share of the total customer load also increase?
  • Time to Payback CAC – How long does it take a new customer acquisition to pay dividends against the customer acquisition cost. This is an investment all companies make – how big of an investment will it be and what are the terms?
  • Marketing Originated Customers – How many customers can you directly attribute to marketing efforts? How many do you want to be able to in the future?

By measuring these five components, you can safely provide a clear understanding of what it will cost to acquire a new customer with your new marketing efforts, how it will impact current operations, and hopefully what the final ROI will be.

The Intangible Components

Even with these numbers, in the end you are making projections. Until the leads start flowing, there is no way to know if this actually works. So part of the conversation you will have with your boss and the team that makes decisions on these matters will be related to the relative value of the new program.

This should include:

  • Case studies of similar programs – show other people successfully implementing these programs and it makes a lot more sense to higher ups.
  • Provide clear examples of what you will do – Show what it will involve to overhaul your digital marketing efforts and what that will look like. Sometimes the vanity metrics can be a nice boost to push decision makers over the edge.
  • Equate cost with effort – Show the value of a smart marketing plan against the cost of engaging a larger sales staff or spending money extensively on advertising.

The goal here is to illustrate both relative and direct value of what you are doing. If you can do this effectively, you will build a strong case for your new efforts.

To learn more about how to have this conversation and start to show and communicate ROI clearly to your organization, download our newest eBook, 7 Tips for Talking to Your Boss About Digital Marketing ROI:


Download Our Marketing ROI eBook