{"id":1180,"date":"2020-05-30T17:20:06","date_gmt":"2020-05-30T17:20:06","guid":{"rendered":"https:\/\/mdsonline.co.in\/blogs\/?p=1180"},"modified":"2020-05-30T17:21:39","modified_gmt":"2020-05-30T17:21:39","slug":"how-to-calculate-the-return-on-investment-roi-of-a-marketing-campaign","status":"publish","type":"post","link":"https:\/\/mdsonline.co.in\/blogs\/how-to-calculate-the-return-on-investment-roi-of-a-marketing-campaign\/","title":{"rendered":"How to Calculate the Return on Investment (ROI) of a Marketing Campaign"},"content":{"rendered":"

Businesses are so engrossed with marketing that they often overlook the most crucial aspect. THE ROI. So let\u2019s get to the point. You have run a stupendous #marketing #campaign and it\u2019s time to calculate Return on Investment (#ROI). How do you do it?<\/p>\n

There are two methods<\/p>\n

A simple ROI calculation method
\n<\/strong><\/p>\n

Here, the calculation is done by integrating the ROI into the entire #business. The #MarketingCost is first subtracted from the #SalesGrowth of the product line\/business. The result is then divided by the marketing cost to obtain the ROI.<\/p>\n

\"THE<\/a><\/p>\n

Campaign attribute calculation method
\n<\/strong>
\nThe simple calculation method assumes that the monthly sales growth can be attributed directly to the campaign. It does not take into account the #comparative #sales figure prior to launching of the campaign.<\/p>\n

The attribute calculation method addresses this issue. It calculates the existing sales trend by
\nconsidering the 12-month lead-up period leading to the launch of the campaign.<\/p>\n

For example, if there is a monthly average sales growth of 4% in that period, then in this method, we will subtract this average sales growth from the total sales growth figure, before making the final calculation.<\/p>\n

Therefore, ROI= (Sales growth – average sales growth-marketing cost) \/ Marketing cost<\/p>\n

Other methods
\n<\/strong>
\nThere are other methods that do not focus on sales growth alone. Rather, they focus on increasing sales leads. Here, the value of the sales leads are calculated by multiplying the historical #ConversionRate by the growth in #SalesLeads.<\/p>\n

All said and done the ROI is the most #effective metric to measure the results of a marketing campaign. However, marketing is a long-term process that generates sales growth over a longer period only. Therefore, the ROI for marketing campaigns may not look that great in the initial months. The cumulative ROI starts to look better with time.<\/p>\n

Hope this gets you thinking<\/p>\n

You may also like to read this blog post about\u00a0 Get Traffic from Sites with Broken Links<\/a><\/p>\n

We encourage your comments on this post.<\/p>\n

Contact Us<\/strong>\u00a0(MDSonline<\/a>,\u00a0Mirania Data Systems<\/a>, Founded by\u00a0Navin Mirania<\/a>) for\u00a0virtual assistance services<\/a>,\u00a0virtual assisting<\/a>,\u00a0virtual assistance,<\/a> marketing strategy<\/span><\/a>, marketing campaign<\/span><\/a>, sales leads<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

<\/div>\n

Businesses are so engrossed with marketing that they often overlook the most crucial aspect. THE ROI. So let\u2019s get to the point. You have run a stupendous #marketing #campaign and it\u2019s time to calculate Return on Investment (#ROI). How do you do it? There are two methods A simple ROI calculation method Here, the calculation  [ Read More ]<\/a><\/p>\n","protected":false},"author":1,"featured_media":1181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[135,138,168,1],"tags":[219,178,220],"class_list":["post-1180","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-career","category-digital-leaders","category-uncategorized","tag-marketing-campaign","tag-marketing-strategy","tag-salesleads"],"yoast_head":"\nTHE ROI THE ROIBusiness MDSOnline Blogs - MDSOnline Blogs<\/title>\n<meta name=\"description\" content=\"Businesses are so engrossed with marketing that they often overlook the most crucial aspect. THE ROI. 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