Calculating Your Marketing ROI in 3 Easy Steps Webinar

1. Calculating Your
Marketing ROI
in 3 Easy Steps
Christopher S. Penn, VP Strategy and Innovation
www.BlueSkyFactory.com

2. Do try this at home.
blueskyfactory.com/webinars

3. The corporate plug:
If you send a lot of email (or want to),
we can help you make more money and
reach more customers. Ask us how.
www.BlueSkyFactory.com

4. #bsfwebinar
TweetAway
follow @blueskyfactory

5. Photo Credit: TheTruthAbout...

6. Diagnostic
vs.
Objective

7. TweetAway
Diagnostic metrics tell you how the trip is going.
Objective metrics tell you when you’re there.

8. Return
on
Investment

9. Photo Credit: AlanCleaver_2000

10. Web site traffic
Twitter followers
Blog comments
Advertisement clicks
Qualified leads

11. Photo credit: SashaW

12. Photo credit: Make Lemons

13. TweetAway
Follower count is as useful to ROI
as treadmill speed is to losing 20 pounds.

14. R
Photo credit: AMAgill
I

15. ROI
101

16. Earned - Spent
= ROI
Spent

17. 1,000 - 500
= 100%
500

18. 250 - 500
= -50%
500

19. Earned - Spent
= ROI
Spent

21. Annual Income =Hourly
2,080

22. Annual Income =Hourly
2,080
Hours x Rate
= Time
Spend in
Money

23. $50,000 = $24.04
2,080
5 x $24.04 =
$120.20

24. 1000 - 620.20
= 61.2%
620.20

25. Worksheet 1
Money Earned: $_______
Money Spent: $_______
Hourly Rate: $_______
Time Spent: _______
Time Spent in Money: $_______
Total Spent: $_______
Total Earned-Total Spent _______%
Total Spent

26. TweetAway
(Total earned - total spent) / total spent = ROI

27. Worksheet 2
Method PPC Email Twitter
Money Earned
Money Spent
Hourly Rate
Time Spent
Time as Money
Total Spent
Earned - Spent / Spent

28. Worksheet 2 Example
Method PPC Email Twitter
Money Earned $1,000.00
Money Spent $500.00
Hourly Rate $24.04
Time Spent 5
Time as Money $120.20
Total Spent $620.20
Earned - Spent / Spent 61.24%

29. Worksheet 2 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00
Money Spent $500.00 $5,000.00
Hourly Rate $24.04 $24.04
Time Spent 5 5
Time as Money $120.20 $120.20
Total Spent $620.20 $5,120.20
Earned - Spent / Spent 61.24% 145.36%

30. Worksheet 2 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00 $750.00
Money Spent $500.00 $5,000.00 $0.00
Hourly Rate $24.04 $24.04 $24.04
Time Spent 5 5 40
Time as Money $120.20 $120.20 $961.60
Total Spent $620.20 $5,120.20 $961.60
Earned - Spent / Spent 61.24% 145.36% -22.00%

31. Worksheet 2 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00 $750.00
Money Spent $500.00 $5,000.00 $0.00
Hourly Rate $24.04 $24.04 $24.04
Time Spent 5 5 40
Time as Money $120.20 $120.20 $961.60
Total Spent $620.20 $5,120.20 $961.60
ROI 61.24% 145.36% -22.00%

32. ROI

33. TweetAway
@cspenn wasn’t kidding. There really was a
giant cow in the webinar presentation.

34. EPL

35. Earned - Spent
Number of Leads

36. TweetAway
Net earnings per lead is a better tactical
number than pure ROI.

37. Worksheet 3
Method PPC Email Twitter
Money Earned
Total Spent
ROI
Number of Leads
Earned - Spent / Leads

38. Worksheet 3 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00 $750.00
Total Spent $620.20 $5,120.20 $961.60
ROI 61.24% 145.36% -22.00%
Number of Leads
Earned - Spent / Leads

39. Worksheet 3 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00 $750.00
Total Spent $620.20 $5,120.20 $961.60
ROI 61.24% 145.36% -22.00%
Number of Leads 100 1,256 75
Earned - Spent / Leads $3.80 $5.92 -$2.82

40. Average EPL

41. Worksheet 3 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00 $750.00
Total Spent $620.20 $5,120.20 $961.60
ROI 61.24% 145.36% -22.00%
Number of Leads 100 1,256 75
Earned - Spent / Leads $3.80 $5.92 -$2.82

42. Average EPL:
$2.30

43. What’s the ROI?

44. TweetAway
Average net earnings per lead helps you
understand when you might lose money on
marketing tactics.

45. Google
Analytics

46. Google Analytics Settings

47. GA: Goal Conversions

48. GA: Top Content Report

49. GA: Top Keywords Report

50. GA: Referring Sites Report

51. GA: Campaign Report

52. Case Study

53. www.BostonMartialArts.com

58. Case Study
Method Web Site Facebook Twitter
Money Earned
Money Spent
Hourly Rate
Time Spent
Time as Money
Total Spent
Earned - Spent / Spent

59. Case Study
Method Web Site Facebook Twitter
Money Earned $264,600.00
Money Spent $4,000.00
Hourly Rate $40.00
Time Spent 260
Time as Money $10,400.00
Total Spent $14,400.00
Earned - Spent / Spent 1,737.50%

60. Case Study
Method Web Site Facebook Twitter
Money Earned $264,600.00 $7,200.00
Money Spent $4,000.00 $0.00
Hourly Rate $40.00 $40.00
Time Spent 260 260
Time as Money $10,400.00 $10,400.00
Total Spent $14,400.00 $10,400.00
Earned - Spent / Spent 1,737.50% -30.77%

61. Case Study
Method Web Site Facebook Twitter
Money Earned $264,600.00 $7,200.00 $1,800.00
Money Spent $4,000.00 $0.00 $0.00
Hourly Rate $40.00 $40.00 $40.00
Time Spent 260 260 260
Time as Money $10,400.00 $10,400.00 $10,400.00
Total Spent $14,400.00 $10,400.00 $10,400.00
Earned - Spent / Spent 1,737.50% -30.77% -82.69%

62. Now what?

63. Case Study
Method Web Site Facebook Twitter
Money Earned $264,600.00 $7,200.00 $1,800.00
Money Spent $4,000.00 $0.00 $0.00
Hourly Rate $40.00 $40.00 $40.00
Time Spent 260 260 260
Time as Money $10,400.00 $10,400.00 $10,400.00
Total Spent $14,400.00 $10,400.00 $10,400.00
Earned - Spent / Spent 1,737.50% -30.77% -82.69%

64. Case Study
Method Web Site Facebook Twitter
Money Earned $264,600.00 $23,400.00 $23,400.00
Money Spent $4,000.00 $0.00 $0.00
Hourly Rate $40.00 $40.00 $40.00
Time Spent 260 260 260
Time as Money $10,400.00 $10,400.00 $10,400.00
Total Spent $14,400.00 $10,400.00 $10,400.00
Earned - Spent / Spent 1,737.50% 125.00% 125.00%

65. Case Study
Method Web Site Facebook Twitter
Money Earned $264,600.00 $7,200.00 $1,800.00
Money Spent $4,000.00 $0.00 $0.00
Hourly Rate $40.00 $40.00 $40.00
Time Spent 260 130 43
Time as Money $10,400.00 $5,200.00 $1,720.00
Total Spent $14,400.00 $5,200.00 $1,720.00
Earned - Spent / Spent 1,737.50% 38.46% 4.65%

66. Act!

67. TweetAway
All metrics, even ROI, are meaningless unless
you take action from what you learn.

68. Review
Diagnostic vs. Objective
ROI 101
EPL + GA
Measure and Act!

69. Do try this at home.
blueskyfactory.com/webinars

70. questions?
#bsfwebinar

71. www.blueskyfactory.com
www.christopherspenn.com
@blueskyfactory
@cspenn