Each conversion contributes to the Return on investment.
This piece suggests businesses should measure per-campaign Return on investment (ROI) in specific goal-oriented conversions to measure overall marketing ROI. Besides sales, marketers can look at other consumer behaviours, like signing up for a newsletter, that brings the customers closer to the end of the sales funnel.
Brands should know their Customer Acquisition Cost (CAC) to figure out the total amount they have invested in one customer. CAC can allow marketers to account for the money that they have spent to get new leads to sign up for a free trial or subscribe to their newsletter.
Measuring customer lifetime value (CLV) is another way to understand the marketing ROI through long term buyers. CLV can allow businesses to see the long-term impact of their marketing investments and adjust their spending according to the expected Return.
[4 minute read]