5+1 Profitability Inbound Marketing: How to measure the ROI of a campaign of Inbound Marketing

5+1 Profitability Inbound Marketing: How to measure the ROI of a... | tinobusiness.com
5+1 Profitability Inbound Marketing: How to measure the ROI of a... | tinobusiness.com

One of the most important things when it comes to implementing a strategy of Inbound Marketing is to check results and measure profitability. During the different steps of the process are different data that we consider knowing what is working and what is failing. Each metric explains different things.

If you have obtained worse results than you expected, you take the time to find exactly what metrics needs to be improved.

For example:

If your landing page does not get too many visitors, you must make changes to generate increased traffic to your website and improve the call to action. If you get enough traffic on the landing page but the problem is that they do not convert, you must modify your design, try new offers and check your contact form. If converting leads to customers is very low, we can be committed two errors or the leads generated are not quality and therefore it is very difficult to end up becoming customers or the monitoring process led to leads out via email sequences and other techniques are not well focused.

The question now is, how do I know if my Inbound Marketing strategy is still profitable? And if not, how I can know at what point do better? Here are six metrics that should be very present to calculate the profitability of your Inbound Marketing:


Revenue generated (€)

5032bd260eb1ae49540003baThe first question is if your Inbound Marketing strategy generates revenue? If you are generating new customers online, the answer is YES. But is it profitable? To answer this question, we must know how much it costs to acquire a customer and how we are generating revenue from this client. If revenues are greater than the costs, then whether it will be profitable. For example, if we spent 200 euros on campaigns of Google Adwords to generate traffic that will later bring us a customer who generates income $ 1,000, in this case, is profitable. Therefore, knowing the cost of customer acquisition is critical to know whether the strategy is profitable.


Cost per Lead

Before we get clients generate leads, and just as there is a cost per customer, there is also a cost per lead. That is, as we have invested in obtaining a lead. Continuing the above example. If we spent 200 euros on Google Adwords and that allows us to capture traffic generated 50 leads, cost per lead is 4 euros. If we improve the conversion of the landing page, and we got that with those same 200 euros 75 leads are captured, cost per lead would drop to 2.6 €. Only with a change like this you can have a campaign becomes profitable if it was not before. Remember that the more leads, more customers.


Value of a Customer (Lifetime Value)

Just as it is important to know the cost of acquiring a customer, we must measure revenue to this client who generates us in his life as a client, that is the average value of a customer. A strategy to increase revenue, instead of getting more customers, is to increase the customer value. It is important to take this into account since it is possible that the cost of acquiring a customer is higher than the first transaction with this client. However, if we do well the work of loyalty, and new transactions are generated with this customer, we get the performance we want.

A practical example for you to understand this concept is that of online bookmakers. These bookies are willing to give you a coupon to enter € 50 bet on its website, as they know the lifetime value of an average customer is hundreds of euros.They do not mind losing some money on customer acquisition because they know that in the medium to long term these new customers are very profitable.


Conversion of traffic to leads

It is important to know the traffic it receives to our website but not as an isolated thing, because nothing helps us get thousands of hits (Organic hits) if we are able to convert that traffic into leads. So the important thing you should know is the conversion rate of traffic received leads. We know the general information of our website and the specific data of each landing page so that we can work individually on each of them to increase the conversion. It is better to receive 1,000 visitors and generate 200 leads, to receive 30,000 visitors and generate 10 leads.


Converting leads to sales

Through our website and landing pages grasp leads. These leads must go through a process of monitoring and “education” will allow us to convert them into customers (lead nurturing). In this process, we can evaluate the quality of these leads (lead scoring) and thus further assess which are the sources that we are generating higher quality leads.

For example, maybe a Facebook campaign we are generating 500 leads a month, but most of these do not pass the following steps of the qualification process and become only two new customers. However, our Linkedin campaigns generate 20 leads, but eventually five of them converted into a customer. Both campaigns can be profitable, but it is clear that Linkedin is a better source of capture leads and customers.

Therefore, it is important to know what percentage of conversion lead to the customer for each of the sources that have captured leads.


Inbound Marketing ROI

Calculating the ROI is critical to deciding on future investments. The ROI (return of investment) as the definition says is the return on investment, that is, the benefit you get from an investment. Y measured by the following formula:



5+1 Profitability Inbound Marketing: How to measure the ROI of a... | tinobusiness.com



ROI = (obtained benefit – investment) / investment

If we get a positive ROI means that we are getting good results in the strategy employed and therefore, can maintain or even increase that investment. Let’s watch this short video below to gain more ideas and I suggest the following books that you must have it if you are quite serious to improve your marketing strategy.

Inbound Marketing, Revised and Updated:

Attract, Engage, and Delight Customers Online
Brian Halligan



The Sales Acceleration Formula: 

Using Data, Technology, and Inbound Selling

to go from $0 to $100 Million 

Mark Roberge




Hope you found this article very useful and if you have any other suggestions, let us know below on the comment.



inbound marketing strategies, inbound marketing, inbound marketing ebook, inbound marketing vs outbound marketing, inbound marketing book, inbound marketing certification, what is inbound marketing, 


Leave a Reply