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Marketing ROI Report
The Marketing ROI Report is an indispensable tool for businesses aiming to gauge the effectiveness and profitability of their business development endeavors. By measuring the return on investment of marketing campaigns, it offers a comprehensive comparison between the revenue generated from lead generation activities and the associated costs.
The Marketing ROI Report also provides a profit and loss extrapolation to show what will happen if (all other things being equal) the number of new customers acquired, and the rate of customer retention remains the same over the next 5 years
Typical Use: To help clients identify and understand if their marketing ‘investments’ are delivering a positive return and to facilitate a ‘what if’ discussion to explore the potential to redeploy marketing ‘investment’ more wisely.
The Marketing ROI Report delves deep into seven pivotal areas of activity:
- New Customer Acquisition: Understand how effective your marketing strategies are in attracting new clients.
- Customer Retention/Attrition: Gauge the longevity of your customer relationships and identify potential areas of concern.
- Projection of Business Performance: Get a forecast of your business trajectory over the next 5 years, based on current marketing ROI trends.
- Cost of Acquisition: Determine the financial investment required to secure a new customer.
- Cost to Service Total Customers: Analyze the overall expenditure involved in maintaining your existing clientele.
- Revenue Analysis: Discover the revenue generated per £ of marketing-related expenditure, ensuring you get the best bang for your buck.
- Key Supplier Expenditure Trends: Stay updated on the spending patterns with your key suppliers.
How The Marketing ROI Report Works:
Once a client is synchronised on the VFD Pro portal and there’s relevant data in their accounting system, the Marketing ROI Report is automatically generated. Despite its depth of information, the report is concise, spanning just three pages, making it an efficient tool for businesses to quickly grasp the effectiveness of their marketing strategies.
Benefits of the Marketing ROI Report:
The Marketing ROI Report not only bridges the gap between finance and marketing but also ensures that businesses are investing their resources wisely. With its clear insights, businesses can make informed decisions, optimising their marketing investments for maximum returns. For advisors, this report is an invaluable asset, enhancing the ROI of their advisory services and strengthening client relationships.
In the ever-evolving landscape of business, understanding Marketing ROI is crucial. With VFD Pro’s Marketing ROI Report, businesses get a clear, concise, and comprehensive view of their marketing efforts, ensuring every pound spent is a step towards greater profitability.
Example Marketing ROI Report
An example of the report’ can be accessed here.
Marketing Return on Investment
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Marketing Return on Investment – FAQ’s
ROI stands for ‘Return on Investment’ in marketing. It is a metric which measures the profitability of a marketing campaign or strategy. It helps businesses determine the effectiveness of their marketing efforts by comparing the revenue generated from marketing activities to the cost incurred.
To measure long-term return you can utilise this report. This report extracts data, analyses sales and marketing expenditure, and calculates the return on investment over a specified period of time. It also provides a profit and loss extrapolation to forecast the ROI over the next 5 years.
To record costs you can use the report in combination with other reports and models available in the platform. The report helps you extract data and analyse sales and marketing expenditure, while other reports can provide insights into specific marketing channels or campaigns. By accurately recording and categorising costs in your accounting system, you can calculate the return by dividing the revenue generated by the marketing campaign by the total cost.
To calculate return on email acitivity, you can use the report or other performance reports. Start by tracking the revenue generated from email campaigns and subtracting the total cost of executing those campaigns. Then, divide the resulting number by the total cost and multiply by 100 to get the ROI percentage.
To calculate return for social media activity, you can use the report in combination with other reports. Start by measuring the revenue generated from social media campaigns and subtracting the total cost of those campaigns. Then, divide the resulting number by the total cost and multiply by 100 to get the ROI percentage. By consistently tracking and analyzing social media metrics, you can assess the return of your social media efforts.
The VFD Pro Marketing ROI Report is a valuable tool for measuring marketing ROI. By extracting data, analysing sales, and marketing expenditure, this report provides a comprehensive overview of the return on investment for your marketing activities. Additionally, you can measure marketing ROI by tracking the revenue generated from marketing campaigns and comparing it to the total cost incurred. Consistently monitoring and analyzing these metrics will give you insights into the effectiveness and profitability of your marketing efforts.