MARCFREE TOOL
What’s your marketing really returning?
Plug in five numbers. See your marketing ROI, cost per customer and what a better close rate would be worth. No email required.
MARKETING ROI CALCULATOR
Your numbers, one month.
Your results
That’s – more gross profit a month, or – a year.
How it works. We use gross profit, not revenue, because that’s the money that actually pays for marketing.
Marketing ROI = (Gross profit from new customers − Marketing spend) ÷ Marketing spend
THE BIGGEST LEVER
Close rate beats more leads.
Try the sliders above. A few points of close rate usually beats a big jump in leads, and it costs far less. That’s why I start with the phones, follow-up and the sales handoff. At one 14-office group, fixing the phones cut missed calls 91%.
ROI QUESTIONS
Marketing ROI, answered plainly.
What is marketing ROI?
Marketing ROI is how much profit your marketing brings back for every dollar you spend on it. A 200% ROI means each $1 of marketing returned $3 in gross profit: your dollar back plus $2.
How do you calculate marketing ROI?
Take the gross profit from customers marketing brought in, subtract what you spent on marketing, then divide by the marketing spend. Marketing ROI = (gross profit from marketing − marketing spend) ÷ marketing spend.
Why use gross profit instead of revenue?
Revenue makes marketing look better than it is. A $10,000 sale with a 30% margin only brings in $3,000 to pay for the marketing. Gross profit shows the real return.
What is a good marketing ROI?
It depends on your margins and how long customers stay. Many marketers aim for about $5 in revenue for every $1 of spend, but the right target is the one that leaves real profit after marketing. If your ROI is negative on first sales, you need repeat business to make it pay.
Which number usually moves ROI the most?
Close rate. Getting more of the leads you already pay for to buy is usually cheaper than buying more leads. That’s why I start with follow-up, sales handoff and the phones before I add budget.
Want a second set of eyes on your numbers?
Bring your real figures. In 30 minutes I’ll show you where the biggest lift is hiding.