Marketing Lead ROI

Marketing Lead ROI


Marketing Lead ROI is a measure of the success of your lead generation efforts. Marketing leads are those prospective clients the marketing team attracts through various online efforts. Marketing lead return on investment is determined by establishing how many leads converted into sales. Successfully determining marketing lead ROI enables marketing and sales teams to fine-tune their marketing lead generation efforts and create increasingly more effective campaigns designed to appeal to increasingly qualified leads.

Companies often invest a sizeable slice of their budget on generating leads through various means: content creation, email marketing, social media, etc. By nailing down your marketing lead ROI, you can quickly weed out those channels and methods that aren’t proving successful, or pinpoint the problem that is preventing their success.

Measuring and Calculating Your Marketing Lead ROI

Calculating your marketing lead ROI often comes down to having the right formula and measuring the right metrics. There is not a one-size-fits-all formula that can be used in every case to measure every level of risk or investment. However, the following formula is the basic return on investment calculation:

ROI formula

This formula works well for quick calculations, but more complex situations call for more sophisticated (and customized) formulas. It all depends on the investment and how you define a success return on investment. Here are some other ways to determine your ROI:

  • Return on Investment (%) = (Net profit / Investment) x 100
  • Return on Investment = gain from investment / cost of investment
  • Return on Investment = Volume of leads generated / (A+B+C+D+E)

In the final bullet point, A,B,C,D and E are the costs associated with your marketing campaigns, costs like lead/list acquisition, emailing to leads, content and website development and data cleansing. Thus, it’s always important to keep track of your investments. In addition to calculating your ROI through formulas, you can measure your marketing ROI through other means, such as:

  • Call tracking
  • Lead scoring
  • Click through rates (CTRs)
  • Response rates
  • Conversion rates


Marketing Lead ROI Tips: Metrics and KPIs Every Marketer Should Track

In addition to measuring marketing ROI, it’s also important to know what metrics to track and what key performance indicators (KPIs) to watch for. Keeping a detailed record of these measures is what separates high-performing companies from the rest:

  1. Number of inquiries. This is the number of people who showed interest in your offer.
  2. Number of leads. These are leads qualified as sales-ready.
  3. Number of opportunities. These are leads that move to the pipeline.
  4. Number of closed sales. These are the number of closed sales generated from marketing leads.
  5. Inquiry to lead ratio. This is the cost-per-lead.
  6. Lead to opportunity ratio. This is the cost-per-opportunity.
  7. Lead to pipeline revenue ratio. This is the cost-per-pipeline revenue.
  8. Lead to sale (win) ratio. This is the cost-per-closed sale.

Measuring and attributing marketing ROI is an essential part of running a successful business. By tracking these metrics and KPIs, businesses will have a better chance of keeping up with the fast pace of the ever-changing market. By recognizing where you need to improve and where you’re doing well, you will find yourself several steps ahead of companies who aren’t tracking these indicators.

Understanding the Benefits of Measuring Additional ROIs

Measuring overall marketing lead ROI comes down to evaluating the performance of individual campaigns and marketing channels. These channels include:

Social media marketing ROI

Social media is wildly popular as a marketing channel, but there is a wide variety to choose from, and it’s safe to say that not all of them will prove beneficial to your particular marketing needs. LinkedIn doesn’t have the same audience as Facebook, and Twitter reaches a different demographic than Pinterest. And not every social media channel relies on the same metrics to determine success, which means that for every channel, you’ll need to create your own formula to find your social media ROI.

For example, to find your Facebook Marketing ROI, you will likely track your number of followers. Facebook ROI can also be determined by observing which posts receive the most likes.

SEO marketing ROI

Your search engine optimization (SEO) ROI, is usually connected to your website’s performance: the number of unique visitors, the bounce rate, and the conversion rate on your optimized landing pages.

PPC Marketing ROI

Tracking metrics to measure your pay-per-click (PPC) ROI includes looking at more than just click-through rates. There are also credit card processing costs, the costs of returned goods and the salaries of those employees who answer phone and email inquiries.

Email Marketing ROI

As one of the most effective means of lead nurturing, email ROI often falls under lead nurturing ROI. But in order to find your email ROI by itself, add tracking links to your email campaigns. This allows you to see when subscribers click on the links. You can also see who visits your site via an email link and what they do once they’re on your site.

When you go to calculate the actual ROI, make sure you’re factoring in the cost of email, the number of sales from email campaigns, the average revenue per sale, the total revenue generated from email campaigns, the profit margin and the profit.

Content Marketing ROI

To figure out your content ROI, it’s important to know which avenues your leads are using to contact you. You will want to find 1) which channel is bringing in the most leads and 2) which are bringing in the most qualified leads (they aren’t always the same).

Call tracking is a very successful tool used for measuring inbound ROI. Tracking phone calls back to your content requires call tracking software that enables you to provision trackable numbers for your content. By using different numbers for different kinds of content, you can quickly see which kind of content is proving the most successful.

Marketing Lead ROI Tools and Statistics

Fortunately, in your quest to find a way to accurately measure how well you are winning over Internet marketing leads, there are also tools specifically designed to calculate marketing ROI. Here are a few examples:

  • Sales Lead ROI Calculator. This simple yet effective tool requires you to first enter answers to questions about your company’s sales into the calculator. It will then proceed to give you a number based on the answers you provided.
  • B2B Sales Leads Success Checklist. Sometimes a way to organize the many things you need to keep track of is all that it takes. Using a checklist to remind you of what you’ve done and what you need to do helps you stay focused on your priorities.
  • Data Diagnostic Tool. This tool assesses your B2B database to make sure it doesn’t have any gaps or inaccuracies in your current marketing data. It can also show you how to improve in email deliveries, segmentation data and contact information.


Get Your Own Free Leads Analysis to See How Sprint Marketing Can Improve Your Marketing Lead ROI Today

Sprint Marketing offers lead generation services that provide an accurate marketing lead ROI so that you can increase your web leads. We analyze and optimize your web marketing strategy and provide you with the latest B2B marketing promotion to best lift your online profile and attract web leads. Contact us for a free leads analysis today.