How to measure marketing ROI
What you'll learn
- →The simple ROI formula (and its limits)
- →Attribution: first-touch, last-touch, multi-touch
- →How to handle long sales cycles
- →When ROI lies (and what to track instead)
Before you start
- □Marketing spend records
- □Revenue records
- □A spreadsheet
ROI is the conversation every owner wants — and the one most agencies dodge. A simple, honest model beats a fancy dashboard.
The steps
- Step 01
Sum total marketing spend per channel per month
Ads, tools, content, agency. Hidden costs (your time) count too.
- Step 02
Attribute revenue per channel
Use UTM links and ask customers 'how did you find us?' at checkout.
- Step 03
Calculate ROI: (Revenue − Cost) / Cost
100% ROI = doubled money. Most healthy channels are 200%+ over time.
- Step 04
Pick an attribution model and stick to it
Last-touch is simplest. Multi-touch is more accurate but harder. Consistency > sophistication.
- Step 05
Build a dashboard updated weekly
Google Sheets is fine. Channel × spend × revenue × ROI × notes.
- Step 06
Add LTV, not just first-sale revenue
A $50 customer who returns 10x is worth $500. ROI without LTV punishes paid channels.
- Step 07
Make budget decisions monthly
Reallocate from negative-ROI channels to positive ones.
Common questions
+What's a good marketing ROI?
3:1 (200% ROI) is healthy. Below 1:1 = stop spending. Above 5:1 = scale up.
+How do I track offline channels?
Unique phone numbers, coupon codes, or in-checkout surveys.
+Should I include my own time?
Yes, at your hourly rate. Otherwise content looks artificially free.
+What about brand awareness?
Track separately — brand isn't direct ROI, but it lifts every other channel.
+When should I expect ROI?
Search ads: same month. SEO/content: 6–12 months. Brand: 12+.
What to do next
Social Perks turns happy customers into a marketing team. Free 14-day trial. No card required.
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