Understanding the return on investment of a campaign is a key part of any marketer’s role. It’s important to understand the performance of past successes or failures, in order to optimize campaigns in the future. This is important for yourself as an individual, but also your boss, who I’m sure wants to understand the results of the company’s cash being spent.
To calculate Marketing ROI, the calculation is relatively simple:
(Sales Revenue – Marketing Spend) / Marketing Spend = Marketing ROI
So if you spent £1,000 sponsoring an event and received £10,000 in sales as a result, the calculation looks like the following…
(£10,000 – £1,000) / £1,000 = 9x or 900%
Marketing ROI, whilst a simple calculation, is never quite straight forward in reality, especially with so many digital marketing platforms being used. But if you are using Salesforce, you are already on your way to full closed-loop-marketing analytics.
Salesforce has an object called Campaigns, that allows marketers to set up details of their campaigns including start dates, budgeted cost, and other details. Being a CRM, Salesforce allows you to load in the Leads or Contacts that you wish to target as part of this Campaign. Whether it is a physical event, online webinar, or email campaign, you can directly connect the individual to the campaign, which is half the battle of measuring marketing ROI.
Once someone is connected to one of these Campaigns goes through the sales cycle and makes a purchase, we have connected the campaign, the spend, and the revenue. All the ingredients we need to calculate ROI!
Marketing ROI in Salesforce
If you’re already using Salesforce & the Campaign object as described in the section above, you are well on your way to working out Marketing ROI.
Salesforce has a help article that describes a standard report that helps you calculate this. However, this seems to be an old article for classic and not Lightning. I therefore find it a lot more useful to create a Formula Field on Campaigns that works this out for you, you can then use this field in reports and dashboards.
Here are the steps to follow to create your own Marketing ROI Field.
- Go to Setup > Object Manager > Campaigns
- Select Fields & Relationships
- Select New field, and create a Formula field
- Give it a name, and select “Percent” as the formula type
- Copy and paste this text into the formula field (Without speech marks)
- “(AmountWonOpportunities – ActualCost ) / ActualCost”
- Add your new field to the page layout and you’re done!
Calculate Google Ads ROI
If you are using a digital advertising platform such as Google Ads to generate leads for your business, the calculation becomes a little bit different. In order to match your advertising spend with your Opportunity revenue, you need to understand which Leads came through a Google Ad.
At Nymble, we have nailed this down with our Marketing ROI system.