We first highlight 6 of these statistical data:
B2B customers conduct 12 searches on average before checking a specific brand's website. ( Kapost )
Online buyers go through about 57% of the buying cycle on their own without talking to sales. ( Executive Board )
83% of online tech buyers found their vendor via Google search. ( MarketingSherpa )
B2B Marketers give the highest priority and dedicate most of their time to 3 main content types: blogs, eBooks, and whitepapers. ( Kapost )
Properly executed Inbound Marketing tactics are 10 times more effective for lead conversion compared to outbound methods. ( Gartner )
44% of brands that use marketing automation software see ROI within 6 months, while 75% see ROI after one year. ( Groove Digital Marketing )
Yes, it is true that the main advantage of the Inbound Marketing Methodology is that the results are completely measurable: number of visitors attracted to the website, number of leads that filled out forms, number of leads qualified as opportunities, number of opportunities approached by sales and converted into customers. So… if everything is measurable in Inbound Marketing and if its basis is content production: How to Calculate ROI in Inbound Marketing?
ROI CALCULATION TEMPLATE
How to calculate the ROI of Inbound Marketing?
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Before answering the million dollar question , we would like to highlight some of the latest statistics that highlight the importance of calculating the return on investment of your Marketing actions.
Considering the marketing activities with the highest ROI, marketers consider organic search or SEO (32% rated highly for ROI), content marketing (30%) and email marketing (30%) the most effective ( Smart Insights , Managing Digital Marketing research report, 2017)
39% of marketers say proving the ROI of their uk number list marketing activities is their top marketing challenge. ( HubSpot , State of Inbound 2017).
SaaS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence ( Tomasz Tunguz )
Inbound Marketing, as we have already discussed in other articles, means “attraction marketing”, and consists of attracting the attention and interest of the target audience ( buyer personas ) and “enchanting” them throughout the journey until they are ready to buy. And, of course, then continuing to add value to build loyalty, converting them into fans and true “ambassadors” of the company.
But it’s no use if you can’t measure performance and make the necessary adjustments to improve the results you’ve obtained. That’s why we ask the following questions: What is your customer acquisition cost? How much is your customer’s lifetime value? Do you know how to calculate the ROI of Inbound Marketing?
Calculating Inbound Marketing ROI
In general terms, ROI ( Return on Investment ) is the value that determines whether the invested capital is generating profit or loss. Regarding Inbound Marketing, we emphasize that it is a medium/long-term strategy. However, it tends to grow strongly between the 6th and 12th month if everything is done “by the book” – regularly publishing valuable content for the target audience, promoting it on the channels where they are present, and continuously monitoring it through marketing and sales.
Before calculating the ROI of Inbound Marketing, it is important to know how to answer two questions: What is the cost per customer acquisition (CAC – Customer Acquisition Cost)? How much is the lifetime value of a customer (LVT – Customer Lifetime Value)? In other words, determine the cost of acquiring customers (expenses with teams, promotion, tools, etc.), the number of new customers/businesses and the revenue generated by them in a given period of time.