Measuring ROI – Difficult but not impossible

We all know calculating the ROI on marketing campaigns is crucial to profit optimization, but measuring the effectiveness of your activities seems next to impossible. How does a marketing professional even know what to measure or if only one measure can be attributed to a sale when multiple activities were involved? How do we know which activities have had the most impact? What does 'impact' really even mean?!

Before you get to overwhelmed, remember that measuring marketing ROI may be a daunting task, but it is not impossible. Here are some helpful methodologies to try out.

For Beginners

For companies just beginning to tackle measuring marketing ROI, most track their results through the single-attribution method. This means that the value of the sale gets attributed to the first, or last, tactic that touched the activity. It is an easy form of measurement, but it doesn't allow credit to be given to any other tactic. For example, when calculating the last touch, if a lead became a sale after a product demonstration, the demonstration would receive all the credit for the sale regardless of any other point of contact.


To improve upon the disadvantages of the former method, the multi-touch attribution method requires one to work backwards from the sale to identify each significant point of contact. After the points of contact have been identified, each receives either an equal percentage of the sale (if there were 3 points of contact, each is attributed with 1/3 of the sale) or an amount based on assumptions of its worth. Though assumptions hurt accuracy, this method focuses on each point pf contact and is very useful for long revenue cycles.


For those with access to large amounts of data, the full-market mix model provides an exceptionally accurate picture of the effectiveness and efficiency of your marketing campaigns. It measures the impact of all programs while taking any externalities into account through equations regarding revenue and ad spend for each variable. See an example here.

These are only 3 methods of the many out there. Every company has to look at their specific needs. At Roundhouse Marketing, we understand this when creating your ads, emails and direct mail. Contact us today to learn how our experts can ensure the profitability of your marketing campaigns.

Comments are closed