1. Find and Grow Your Email
Marketing ROI
Christopher S. Penn, Director of Inbound Marketing
www.WhatCounts.com

2. Fair Warning

3. http://www.whatcounts.com/pinterest

4. #wcroi

5. Find Grow

6. Find

7. What?
When?
How?

8. Return
on
Investment

9. Earned - Spent
= ROI
Spent

10. ROI is a financial equation.
Accept no substitutes.

11. Return on “influence”
Return on conversation
Return on engagement

12. 1,000 - 500
= 100%
500

13. 250 - 500
= -50%
500

14. Earned - Spent
= ROI
Spent

15. Marketers woefully undervalue
time spent as money in ROI.

17. Annual Income =Hourly
2,080

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

19. $50,000 = $24.04
2,080
5 x $24.04 =
$120.20

20. 1000 - 620.20
= 61.2%
620.20
100% ROI vs. 62% ROI

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

22. What?
When?
How?

23. ROI is not
everything

24. Audience
Prospects
Leads
Customers
Evangelists

25. ROI really important!

26. ROI is really important when you need
maximum results for tight resources.

27. ROI not as important!

28. ROI is not as important when you are
making strategic choices for investment.

29. What?
When?
How?

30. Earned - Spent
= ROI
Spent

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

32. 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%

33. 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%

34. But wait!

35. Last Touch Problem

37. Email
Webinar
PPC Ad
Blog Post
Sponsored
Tweet
Which caused the sale?

38. Old school single channel
ROI is broken

39. o t he
B ack t
boa rd
d raw ing

40. Income
Margin
Expense
Net Profit
Audience
Volume
Action

41. Income Product
Margin
Expense Operations
Net Profit
Audience Marketing
Volume
Action Sales

42. EPA

43. Earned - Spent
Number of Actions

44. Worksheet 3
Money Earned: $_______
Money Spent: $_______
Hourly Rate: $_______
Time Spent: _______
Time Spent in Money: $_______
Total Spent: $_______
Total Earned-Total Spent _______ EPA
Valuable Actions

45. So what?

48. Yes, but so what?

49. Last Touch Problem Solved
Goo gle

50. One Phrase:
MCF

51. Google Analytics Multichannel Funnels
get us much closer to real ROI.

52. Multichannel Revenue

53. Email “closed” 179 interactions for $67,987 but
helped 96 more for $36,796
Total Return: $104,783

54. Find email dependencies

55. Earned - Spent
= ROI
Spent

56. 104,783-3,300
3,300 = 3075%

57. The Big Picture of
Internet Marketing ROI

58. Grow

59. ROI is good for making post-campaign
keep or kill decisions.

60. ROI is not as good at helping you
diagnose and fix campaigns now.

61. Sales

62. Qualified Leads
Sales

63. Prequalified Leads
Qualified Leads
Sales

64. Interested Prospects
Prequalified Leads
Qualified Leads
Sales

65. Active Audience
Interested Prospects
Prequalified Leads
Qualified Leads
Sales

66. Potential Audience
Active Audience
Interested Prospects
Prequalified Leads
Qualified Leads
Sales

67. Potential Audience
Active Audience
Interested Prospects
Prequalified Leads
Qualified Leads
Sales

68. Potential Audience 800
Active Audience 400
Interested Prospects 200
Prequalified Leads 100
Qualified Leads 50
Sales 25

69. Potential Audience 800
50%
Active Audience 400
50%
Interested Prospects 200
50%
Prequalified Leads 100
50%
Qualified Leads 50
50%
Sales 25

70. Potential Audience 800
50%
Active Audience 400
25%
Interested Prospects 100
50%
Prequalified Leads 50
50%
Qualified Leads 25
50%
Sales 12.5

71. Diagram out your sales and marketing
KPIs and find the most broken step.

72. Potential Audience 800
50%
Active Audience 400
25%
Interested Prospects 100
50%
Prequalified Leads 50
50%
Qualified Leads 25
50%
Sales 12.5

73. How can we use email to
fix the broken step?

74. Active Audience 400
25%
Interested Prospects 100

75. Potential Audience 800
50%
Active Audience 400
37.5%
Interested Prospects 150
50%
Prequalified Leads 75
50%
Qualified Leads 37.5
50%
Sales 18.75

76. Find out if your email even got to your list

77. 168

78. Move email up in the chain

79. 32,214
32,214 32,214 32,214
32,214 Audience
107 80
Content

80. Test the optimum combination of performance

81. Buy something
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82. Affiliate marketing

83. Any opportunity to be
helpful is an
opportunity to earn
money. @chrisbrogan

84. Earned
Spent
Money

85. Find Grow

86. 866-804-0076
www.whatcounts.com
@WhatCounts
www.whatcounts.com/facebook
www.whatcounts.com/linkedin
www.whatcounts.com/gplus
www.whatcounts.com/pinterest

87. www.whatcounts.com/newbook

88. Questions?