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1 Toolkit of the Month: Marketing & Marketing Automation
2 Marketing ROI Calculator
3 Marketing ROI Calculator Definitions Unique Opens: A single open by a single user. Unique Clicks: A single click by a single user. Hard Bounces: A permanent failure due to a non-existent address or a blocking condition by the receiver that returns the to the server that sent it. Soft Bounces: A temporary failure due to a full mailbox or an unavailable server that returns the to the server that sent it. Open Rate: The total number of s opened divided by the total number of s delivered as a percentage. Click Through Rate (CTR): The percentage of those clicking on a link out of the total number who see the link. Click To Open Rate (CTOR): The ratio of unique clicks as a percentage of unique opens. Generic Conversions: Can include, but is not limited to, any desired call to action that takes place in an marketing campaign (i.e. Generating Leads, Form Registration) Conversion Rate: The number or percentage of visitors who convert casual content views or website visits into desired actions.
4 Marketing ROI Calculator Enter the inputs required. The marketing caluclator will calculate the results of your marketing campaign. Inputs (Historical - All Marketing Campaigns) Inputs ( Marketing) Personalization Platform 4% s sent 20,000 Soft Bounces 172 Voice of the Customer Platform 2% Campaign Costs $5,000 Unsubscribes 25 Gamification Platform $120 Unique Opens 5,400 Number of Leads 45 Online Community Platform $400 Unique Clicks 500 Number of Sales 25 Advocacy & Loyalty Platform $1,500 Hard Bounces 125 Results ( Marketing) Open Rate Click Through Rate Click to Open Rate Conversion Rate Conversion Rate (Sale) (Lead) Revenue 27% 3% 9% 9% 5% $37,500
5 Marketing ROI Calculator Cost Per Lead Cost Per Sale $122 $120 $118 $116 $114 $112 $110 $108 $106 Cost Per Lead ( Marketing) Cost Per Lead (Historical) Cost Per Sale (Historical) $0 $200 $400 $600 Cost Per Sale ( Marketing)
6 Marketing ROI Calculator Lead to Sale Revenue vs. Cost $40,000 Sales $30,000 Revenue Leads $20,000 Cost $10, $0
7 Marketing Automation ROI Calculator
8 Instructions To see the overall financial impact that Marketing Automation can have on lead generation, lead scoring and lead nurturing combined, complete the worksheet "Cumulative Impact". Follow the directions in the "What to Enter" column of each worksheet. You only need to fill in the cells that are beige, all others will auto-calculate. Review the bold text in the notes column. You may want to adjust some of the formulas to match your organization's forcasting. All cells are modifiable to allow flexibility. By completing the "Cumulative Impact" worksheet, the "Financial Impact Summary" worksheet will automatically be completed. 5. Use the "Financial Impact Summary" as a communication tool and business case for acquiring a Marketing Automation solution for your team. This may be all you need to make the case.
9 Fill in the following worksheet. Use the instructions in the right hand column if you need assistance. Input data in the beige cells provided. White cells will automatically populate/calculate. Scroll to the bottom for ROI calculations. Financial Impact of Lead Generation, Scoring & Nurturing Changes with Marketing Automation Software Marketing Function Key Metrics & Cost Current Forecast (6 months) Change Due To Marketing Automation Notes What to Enter Lead Generation Search Engine Marketing Clicks/month 300, , % Marketing Automation will not directly affect your click volume in SEM campaigns. Enter how many clicks per month go to your paid and un-paid lead generation landing pages. Key Change Landing Page Conversion Rate 6.34% 7.61% 20.00% A/B testing of landing pages will increase conversion rate NOTE: This form calculates a 20% increase in landing page conversion rates. Adjust to your organization's forecast as necessary. Your current conversion rate of form completion/clicks AND your projected increase in conversion rate.
10 Financial Impact of Lead Generation, Scoring & Nurturing Changes with Marketing Automation Software Marketing Function Key Metrics & Cost Current Forecast (6 months) Change Due To Marketing Automation Notes What to Enter Lead Generation Search Engine Marketing Costs $30,000 $30, % No change in overall SEM budget, just getting more for your dollar. Your current monthly direct lead gen. costs. E.g., Google AdWords, Events, Paid Lists. Cost-per-lead $1.58 $ % With pay-per-click, more paid traffic converting to a lead results in decreased cost-per-lead. Inbound Marketing Leads/month 19,020 22, % % of Leads Lost to Lead Scrubbing 30.00% 30.00% 0.00% Often leads are lost after removal of duplicate entries or bad data. Enter your current scrub rate.
11 Financial Impact of Lead Generation, Scoring & Nurturing Changes with Marketing Automation Software Marketing Function Key Metrics & Cost Current Forecast (6 months) Change Due To Marketing Automation Notes What to Enter Lead Scoring % of Leads Deemed Sales-Ready % 25.00% % Lead scoring will decrease the monthly volume of sales-ready leads initially, but will dramatically increase the quality. NOTE: This form calculates that 25% of inbound leads will be scored "sales-ready". The remainder will go to lead nurturing data base. Most organizations without Marketing Automation forward all Leads to Sales. Key Change Sales-Ready Leads/month 13,314 3, % Fewer leads are considered sales-ready, but sales-ready leads will be more qualified.
12 Financial Impact of Lead Generation, Scoring & Nurturing Changes with Marketing Automation Software Marketing Function Key Metrics & Cost Current Forecast (6 months) Change Due To Marketing Automation Notes What to Enter Lead Scoring Key Change Opportunities/ Lead 20.00% 80.00% % NOTE: This form assumes that 80% of leads scored as sales-ready will convert to opportunities. You can adjust this metric to fit your organization's expectations. Enter your current opportunity/leads rate AND your forcasted increase in opportunity/leads Opportunities/ month 2,663 3, % Overall slight increase in volume of opportunities per month despite drop in leads entered into funnel.
13 Financial Impact of Lead Generation, Scoring & Nurturing Changes with Marketing Automation Software Marketing Function Key Metrics & Cost Current Forecast (6 months) Change Due To Marketing Automation Notes What to Enter Lead Nurturing Lead data base 100, , % Nurturing can/will increase your data base if you purchase lists and work towards warming them to a sales-ready state. For the purpose of this calculator this was excluded. Enter the number of leads in your data base. Key Change % of Sales-ready leads coming from the lead data base 0.00% 2.00% N/A NOTE: This form adds 2% as the expected volume of warm leads coming from your lead data base. Adjust for your organization if necessary. Enter the current % of leads being warmed from your data base (enter 0 if you are not doing lead warming) AND your projected rate of increase in volume warm leads.
14 Financial Impact of Lead Generation, Scoring & Nurturing Changes with Marketing Automation Software Marketing Function Key Metrics & Cost Current Forecast (6 months) Change Due To Marketing Automation Notes What to Enter Lead Nurturing Sales Opportunities from Lead data base/month 0 2,000 N/A Opportunities from nurturing the data base. Key Change Total Opportunities/ month 2,663 5, % Opportunities from lead scoring inbound marketing leads AND opportunities from nurturing the data base.
15 Financial Impact of Lead Generation, Scoring & Nurturing Changes with Marketing Automation Software Marketing Function Key Metrics & Cost Current Forecast (6 months) Change Due To Marketing Automation Notes What to Enter Sales Key Change Sales/Opportunities 6.44% 6.76% 5.00% With lead scoring and Lead nurturing, leads are sent to sales at the right phase in the buying cycle. This will increase the sales conversion rate. NOTE: This form calculates a 5% increase. Adjust to fit your organization. Enter your current sales/ opportunity conversion rate AND your projected increase in rate of sales/opportunities. Sales/month % Average Sale Marketing Automation Software cost/ month $1,000 1,000 1, % Average sale may increase but is not used in this ROI calculation Enter your average sale value. Enter your average sale value.
16 ROI of Marketing Automation - Cumulative Impact of Lead Generation, Scoring & Nurturing Before Marketing Automation After Marketing Automation Revenue from Inbound Leads $171, Lead Generation Cost $30, ROI % Revenue from Inbound Leads $351, Lead Generation Cost $30, LMA software/month $4, Monthly cost $34, ROI %
17 Financial Impact & ROI of Marketing Automation $400, % Review the financial impact of Marketing Automation below, and chart to the right. $350,000 $300,000 Before Marketing Automation Revenue/Month Revenue (Inbound Leads) $171, $250,000 $200,000 $150, % Lead Generation Cost $30, $100,000 Return on Investment (ROI) % After Marketing Automation Revenue/Month $50,000 $0 Before Marketing Automation After Marketing Automation Revenue from Inbound Leads $351, Lead Generation Cost Revenue (Inbound Leads) ROI (Before/After) Lead Generation Cost $30, Marketing Automation software/month $4, Monthly cost $34, Return on Investment (ROI) % Note: Prior to Marketing Automation leads are typically generated and sent directly to sales. Note: Marketing Automation can also be used to increase client engagement, and manage campaigns to clients/partners/media. These benefits have been excluded from this workbook in order to focus on the more metric-driven and standardized marketing automation benefits.
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