39. How to prove ROI with your marketing
UPDATED KPI SHEET: I put a link to the wrong sheet in the original post. The new one is here: https://docs.google.com/spreadsheets/d/1NYqN_QdbU7PPQ_v1LR9KycEdGNtm7a4LTugo09IADLk/edit
Most new clients I speak to have never worked with someone who could prove an ROI.
Which is crazy, because it's not that complicated.
By tracking in a spreadsheet month over month the following metrics, you should be able to quickly see whether your marketing is performing well or not.
1. Revenue
2. Marketing expenses
3. New leads/subscribers
4. New customers/closed deals
5. Cost per lead (marketing expenses / number of leads)
6. Cost per new customer acquisition (marketing expenses / number of new customers)
7. Marketing costs as a percent of revenue (marketing expenses / revenue)
The result of this gives you a floating average that tells you whether your efforts are resulting in a profitable flow of new leads or customers.
Assuming you know your approximate lifetime value of each new customer, it will be immediately apparent whether you're moving the needle or becoming an expense.
Got questions? Let me know!
Yours,
—k
