No one wants to support marketing activities that are losing their company money. But if you track the right marketing kpi’s and align your marketing initiatives to enable sales growth, your company will be able to make smart adjustments to strategies and budgets.
All entertainment companies should be tracking sales revenue from marketing and inbound marketing ROI in 2017. And if you’re not already doing this, shame on you. Here are 2 marketing formulas you should be using in 2017:
1. Sales revenue from marketing
How much money did your inbound marketing campaigns over the past year generate for your company or brand? This is great information to have. But to know your sales revenue from inbound marketing you have to be able to differentiate inbound marketing from outbound marketing.
You can calculate your sales revenue from inbound marketing with the following calculation:
(Total sales for the year) – (Total revenue from customers acquired through inbound marketing)
2. Inbound marketing ROI from your campaigns
Calculating your inbound marketing return on investment (from things like online ads, your newsletter, etc) will help you assess your monthly and annual performance — in other words, your quarterly GROWTH. It gives you the ability to create marketing plans, strategy briefs, and budgets for the following year or upcoming months. When you have this kind of information, you’ll know exactly how to get to where you want to be. it’s an amazing feeling!
Once you see your ROI from marketing activities, it helps you make smarter, data-driven decisions. You can use the formula below to start calculating your inbound marketing ROI:
(Sales Growth – Marketing Investment) / Marketing Investment = ROI