How to Calculate the ROI of your Inbound Marketing Efforts

At RUNNER, we talk a lot about being a partner for our clients, and we mean that. We want to make sure our joint marketing efforts are affecting your bottom line in a positive way.

We also talk a lot about measuring the impact of our work by understanding the return on our clients’ investment (ROI) in inbound marketing, because without careful measurement and tracking, we can’t be sure our work is bringing you positive returns.

It’s important to not confuse activity with results. [tweet this]

We’re not in the business of throwing money at something and just hoping it works, and you’re probably not, either.

Here’s how to determine whether your inbound marketing program is showing returns:

1. Know your Base Figures

To get started you need to dig into your company data to find the following numbers:

  • Total Inbound Marketing Spend: how much have you spent on Inbound Marketing over a given period?
  • Lifetime Value of a Customer (LTV): What is the gross revenue expected over the entirety of a relationship with a customer?
  • Number of New Customers: How many customers have been acquired over a given period as a result of Inbound Marketing efforts?

2. Find your Cost per Acquisition

To find your Cost per Acquisition (“CPA” or cost to acquire one customer), you simply take your Total Inbound Marketing Spend over a given period and divide that by the Number of New Customers acquired over the same period. That’s your CPA.

3. Find your Per Customer ROI

Next, you need to know your Per Customer ROI, or the return on your inbound marketing investment for each customer. Take the Lifetime Value of a Customer (LTV) and subtract your Cost per Acquisition (CPA) to find your Per Customer ROI.

4. Get your Inbound Marketing ROI

The rest is easy. Multiply your Per Customer ROI by the Number of New Customers acquired to get your Inbound Marketing ROI.

How to Calculate the ROI of Inbound Marketing
Partnering with an inbound marketing agency that has the tools and the skill to be able to effectively measure their work is key to ensuring adaptability, and thus, success of your marketing efforts.

If you’re ready to talk real, measurable growth, we want to meet you! Contact us today for your free consultation.

Lacy Judd

Lacy Judd

Co-founder & Creative Director

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