Marketing ROI Calculator
Framework for Measuring True Campaign Profitability
Stop tracking vanity metrics like impressions and clicks. This framework shifts your focus to pipeline velocity, customer acquisition cost (CAC), and true revenue contribution.
Phase 1: Baseline Economics
You can't improve what you haven't accurately costed.
Do you have a fully loaded CAC (including software, salaries, and ad spend)?
What is your current Customer Lifetime Value (LTV)?
Are you tracking the LTV:CAC ratio (target is > 3:1)?
Do you know your blended payback period in months?
Have you separated branded vs. non-branded search acquisition costs?
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Phase 2: Pipeline Velocity
Leads don't pay the bills. Closed revenue does.
What is the average sales cycle length from first touch to closed-won?
Are you measuring the conversion rate between MQLs and SQLs?
Do you know the average deal size generated by specific marketing channels?
How much pipeline is currently stalled in the 'evaluation' phase?
Are you tracking the win rate of marketing-sourced vs. sales-sourced deals?
Phase 3: Attribution & Scaling
Find what works, kill what doesn't, and pour fuel on the fire.
Are you using multi-touch attribution or relying on flawed 'first-touch' models?
Which single channel provides the highest quality SQLs?
Have you identified campaigns that generate high traffic but zero revenue?
Are your marketing and sales teams aligned on a unified revenue dashboard?
Do you have a clear formula for when to increase ad spend on a winning campaign?
The ROI Matrix
Your CAC exceeds your LTV. Stop scaling immediately. You need to fix your pricing, retention, or targeting before spending more.
You are profitable, but payback periods are too long. Focus on improving sales velocity and killing low-performing channels.
Your LTV:CAC is healthy (> 3:1). You have a predictable revenue engine. Accelerate spend in your highest-converting channels.
Want to go deeper?
Every framework works best when adapted to your specific context. If this resonates, I'd love to hear how it lands in your world.
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