(949) 214-4024 [email protected]

The ROI Calculators 

(click on a circle for the calculator)


These three ROI calculators allow you to do an in depth evaluation of the worth of your online marketing. Each ROI calculator provides different pricing levels, different online variables, and Integration of your Analytics.

ROI FormulaROI FormulaROI Formula  

The ROI Formula 


Business owners pay for online marketing and many times they wonder how much money they are actually making from it. On the other hand, online marketers want to prove their worth to their client by showing the value of their services. Either way this ROI formula is a great tool for determining the value of your online marketing services.

Creating the right ROI formula is tricky because every business is different. Some businesses provide multiple services and products and at multiple price levels. With a wide range of sales prices, how do you measure the value of each marketing metric. Some businesses provide their services online which gives them the advantage of seeing each full conversion, but many businesses are not. The final conversion for them happens offline. For the offline businesses, are there particular online actions that take place that are more valuable than others? This online marketing ROI formula takes all of these aspects into consideration. Click on the calculator above that is relevant to your services. Make sure to pay attention to the guide that is displayed below in order to use the calculators accurately.

 

roi formula

ROI Formula Guide 


The ROI formula requires data from analytics. If you are evaluating your “Search Engine Marketing” service make sure that your website is set up with Google Analytics. The same goes for the “Email Marketing” service. Email service providers like Mail Chimp, provide this information.

The data that you plug in must be consistent for the formula to work. If you choose to put in your monthly marketing cost, make sure that your analytics data is set for only a month as well.

Price Levels 


Why?

Some companies offer multiple services/ products at different price levels. If you only provide a service/product at one price level then choose “PRICE LEVEL 1.”

Amount

Do not stress to much about finding the exact price. The ROI formula does not actually include this price into the equation. It is only used as a standard to help you determine the value of the variables.

 

 

roi formula

Example

Plumber: Price Levels

Price Level 1: $300 (Garbage Disposal)

Price Level 2: $1000 (Water Heater)

Price Level 3: $2500 (Bathroom Remodel)

Percentages

If you have more than one price level for your business then it is important to determine how much each price level contributes towards the whole business. This will help gather a more accurate ROI projection because it takes into account the probability of each price level occurring and calculates its according to its amount.  

 

The Variables


 

 

The variables are the different actions that the user performs that contribute towards the conversion process. Different variables are further in the conversion process and therefore hold more weight. For example, when it comes to a service company, having a user open an email is not as valuable as having a user go to the contact page of the website.

Why?

You have the option to choose your variables because depending on the business (industry) each variable holds a different value, if any value at all.

 

roi formula

Value 


 

Example: 

One user goes to the company’s “Contact page”  to call about a garbage disposal ($300). Another user goes to the “Contact page” to call about a bathroom remodel ($2500.) If the business owner is being honest, the return on investment from the second call is worth much more than the first because the sale is much higher. In this case, it is important to set a high value under the “Contact page” for Tier 3.

Online Services

Determining the value of the variable is very crucial to the ROI formula. This should be easy for companies that offer their services and products online because the sales process begins and ends online. Therefore Google Analytics will be able to tell you exactly how many leads turned into a full conversion. A full conversion equals the value of the sale.  If I sell books online, and a sale came from my marketing services then the value of the marketing equals that sale because the sale would have been non-existent without it.

Offline Services

However, when it comes to companies that provide their services offline, these variables do not represent a full conversion. They are the passes that lead to the touchdown. This step takes a level of honesty. How much would you pay for the following variable to take place? Remember, the variable may not be a touchdown but it still holds high value. For this reason, the Tier prices that you chose are displayed above each set of variables. They are not included into the actual equation. The Tier prices are a reminder of the value each variable brings when leading up to the conversion.

Aggregated Data

The ROI formula automatically subtracts the preceding variables in the conversion path in order to avoid double counting the same lead.  For instance, if a user opened the email, clicked through to the website, and visited the contact page then all three values will not be included because it is the same lead. Only the Contact page will be included because it is the farthest step in the conversion path of this particular user.

 

 

roi formula
roi formula

Email Marketing Variables


All of the following data is available in your email campaign reports.

Opened

Define:

Indicates how many users opened your email.

Value:

Even if a user only opens the email it still holds value because it increases your company’s brand awareness. The ROI formula automatically subtracts the preceding variables from “opened” in order to avoid double counting the same lead.

Forwarded 

Define:

Indicates how many times a user forwarded your email to another user.

Value:

A forwarded email means that either the user thought your email was interesting and wanted to share it, or they knew someone that would be interested in your services and the decided to share it.

Total Clicks (Website link) 

Define:

Determined by the “call to action button” displayed on the email campaign. It can either link to the company website or the business phone number.  In this calculator it represents a click to the website.

Value:

Total clicks has high value because it means that the email generated enough interest for the person to look for further information on the website.

Call Button

Define:

When your email campaign does provide a “call to action button” with the business phone number provided then the clicks indicate a “Call Button.” However it does require the user to be viewing the email from a mobile device to have the capability to make the call.

Value:

This is almost a full conversion. The user saw the email, needed your services, and decided to give you a call. This should be set at a very high value.

Search Engine Marketing Variables


 

All of this data can be found in Google Analytics. To learn how to gather this information take a look at Inputting the Data.

Contact Page

Define:

Indicates that the user has visited the page where the company contact information is located.

Value:

The Contact is the most common goal for offline businesses. The main goal is to have the customer drive to your location or call the business phone. If the user views the contact page they are most likely interested in your services and want to make a purchase. The Contact page is almost a full conversion and should be valued very high.

Data Input:

You may gather this data from Google Analytics. Go to the “Site Content” section under the “Behavior” tab. Then click on “All Pages.” This page displays the activity that has happened on each page. Look at the unique page views under your contact page.

Direct Call 

Define:

Indicates that the company has placed their phone number on their website with a tracking code. This is common for mobile responsive websites where the user can make a direct call from the website.

Value:

If available for your website, this should be valued even higher than the contact page because it represents an actual phone call.

Data Input:

It is necessary to have already set a “goal” for this variable (located in the admin section.) The phone number on the website must also have a tracking code. The tracking code must be inputed into Google Analytics. You can do this by making a custom goal and choosing  the “event” type goal. Then place your tracking code into the “action” condition. Once your goal has been setup you can gather the data in the “Conversion” tab located on the left bar.

Make a Purchase

Define:

Indicates a purchase has been made. This variable is for companies that sell services and products online.

Value:

This is for online companies, and it represents a full conversion.  It should be valued equal to the sale price.

Data Input:

It is necessary to have already set a “goal” for this variable. You can do this by going to the goal section in your admin panel. When adding a new goal the variable should be an option under “revenue.” Once your goal has been setup you can gather the data in the “Conversion” tab located on the left bar.

Create an Account

Define:

This variable is for companies that provide online services that include memberships and accounts that the users log into.

Value:


This is for online companies, and it represents a full conversion.  It should be valued equal to the sale price.

Data Input:

It is necessary to have already set a “goal” for this variable. You can do this by going to the goal section in your admin panel. When adding a new goal the variable should be an option under “acquisition.” Once your goal has been setup you can gather the data in the “Conversion” tab located on the left bar.

Unique Page Views

Define:

This variable aggregates page views by the same user during the same session so that the same user is not getting accounted for twice. Choosing unique page views versus page views allows more accurate data for looking at return on investment.

Value:

This action is at the beginning of the conversion process but it is still valuable. It indicates that the marketing company is drawing people to the website, and they are generating interest about the company. The ROI formula automatically subtracts the preceding variables from unique page views in order to avoid double counting the same lead.

Data Input:

“Unique Page Views” is found in your Google Analytics under the “Overview” section in the “Behavior” tab located on the left bar.

Subscribe to Newsletter / Join Group

Define:

This variable is for companies that provide information to their consumers through consistent updates and emails.

Value:

If this is the primary service that your company provides then this would be considered a full conversion. If your company uses this for marketing, then it is very valuable because it allows for your company to create a relationship with the customer.

Data Input:

It is necessary to have already set a “goal” for this variable. You can do this by going to the goal section in your admin panel. When adding a new goal the variable should be an option under “engagement.” Once your goal has been setup you can gather the data in the “Conversion” tab located on the left bar.

Look at Reviews

Define:

This variable is when the user views the testimonials on the company website.

Value:

Many users like to shop around and compare prices and quality with other companies. But this step still indicates that the shopper views your company as contender for their purchase.

Data Input:

You may gather this data from Google Analytics under the “All Pages” section in the “Behavior” tab located on the left bar. This page displays the activity that has happened on each page. Look at the unique page views under your testimonial page.

Look at Services / Features/ Products 

Define:

Indicates that the user has shown interest in the company’s services/products and may be considering a purchase. This variable is for companies that provide pages with information about their service/products.

Value:

Many users like to shop around and compare prices with other companies. But this step still indicates that the shopper views your company as contender for their purchase.

Data Input:

You may gather this data from Google Analytics under the “All Pages” section in the “Behavior” tab located on the left bar. This page displays the activity that has happened on each page. Look at the unique page views under your “services/ products/ features” page.