ROI assesses marketing campaign success by revealing how effectively money invested generates returns.
To find ROI easily, subtract total marketing cost from sales growth, then divide the result by the marketing cost.
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Example: Sales increased by $1,000. Subtract the $100 marketing cost, then divide by the marketing cost for a 900% return on investment.
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Start by setting clear goals for your marketing campaign—this is the first step for calculating its Return on Investment (ROI).
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Secondly, figure out the campaign cost—add up expenses like making materials, running ads, and any third-party services used, including marketing firms.
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Finally, figure out the money the campaign brought in—count everything earned directly, like sales and leads.
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To figure out revenue accurately, track conversion rates and average sale value. Consider organic sales growth for a more thorough ROI.
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Campaign duration affects ROI calculation. Short campaigns may hinder accurate ROI, while long ones can generate revenue beyond the period.
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Another formula for calculating ROI on different datas, one can use: ROI = (Revenue – Cost) Cost
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