How efficient is your investment?

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The average B2B sales cycle is six months. Returns on marketing investments take time to trickle down to the bottom line. In an uncertain situation, there is pressure to prove those returns are on the way, long before they actually arrive.

There are several types of Marketing ROI, just to name a few:

Income/reservations
Cost per acquisition (CPA) ratio
Return on advertising investment
Customer Lifetime Value (CLTV)
It's important to understand the differences between different types of ROI so you can choose the right one. But most of these metrics are calculated in a similar way, regardless of which metric you use.

How is MROI calculated?
Marketing ROI is simply a return on investment calculation. It looks like this:

ROI Return nvestment

Simple ROI = (Sales – Marketing Cost)

The formula for ROI is pretty simple. It's the financial return israel phone number list generated by your marketing efforts, divided by the cost of your marketing investment.

As with any ROI, the goal is to achieve a positive outcome. Ideally, you want to maximize the return on every dollar spent.

You can track Marketing ROI by looking at cost or efficiency ratios and see how much money was generated for each dollar spent on Marketing.

Cost ratio = Return: Investment

A good marketer will always strive to generate revenue at a lower rate than they spend. An amazing campaign could generate a cost ratio of $8 for every dollar spent (8:1) with a simple marketing ROI of 700%.