Features of this ROMI calculator
- Step-by-step instructions, the numbered, blue arrows on the calculator, make it easy for non-financial users
- Easy-to-Use sliders allow you to play “what if” scenarios
- Built-in guidance into best-practice B2B conversion rates
To start, simply enter your numbers into the input fields, or hover your cursor over the step-by-step blue arrows to walk you through the process.
|Generating New Customers through Inbound Leads|
|Goal||Annual Visitors/ Prospects/ Clients||Associated Annual Costs|
Convert to Prospects
Close New Customers
|x Average Lifetime Revenue from New Customer($)|
|x Average Gross Margin|
|ROMI (Return on Marketing Investment)|
Why is ROMI so important?
First of all, ROMI is the ultimate measure for campaign value. Forget clicks or conversion. The campaigns that generate the most new revenue – per dollar invested – need to be continued. If ROMI doesn’t measure up, dump the campaign in favour of a better performing one.
Second, armed with real ROMI numbers, you can better defend your budgets and programs. Otherwise marketing will always be the first place for management to look when cutting costs.
Third, using ROMI as marketing’s key performance metric better aligns marketing with sales’ “show me the money” approach. Now both groups can finally row together to achieve the same goal.
Want more? If you are interested in calculating ROMI for other marketing applications, check out these related blog posts:
Need one-on-one guidance? Email us at firstname.lastname@example.org, and we’ll help you create a customized, bullet-proof financial case to present to the rest of your executive team.
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