The ROI Revolution: 5 Metrics You Aren’t Tracking (But Should Be) to Prove Your Marketing Worth

Return on Investment (ROI) has long been considered the holy grail of marketing metrics. For decades, marketers have focused on tracking traditional ROI to showcase the monetary value driven by their efforts. However, in today’s digital market, solely relying on old-school ROI calculations is no longer enough.

To truly prove marketing’s worth in the modern age, we need an ROI revolution – with new metrics that provide deeper insights into performance across every stage of the customer journey. In this post, we will explore 5 overlooked metrics you should start tracking now to showcase the full impact of your marketing campaigns.

5 Overlooked Metrics You Should Start Tracking In ROI Revolution

In the ROI revolution following are the 5 matrics which you should start tracking to improve marketing ROI for maximum profit:

1. Cost Per Lead

What it measures: The average cost to generate a lead through your marketing efforts.

Why it matters: Lower cost per lead indicates greater campaign efficiency and allows you to optimize spending.

How to calculate: Total marketing spend / Total new leads

Example: If you spent $5,000 on a campaign and generated 1,000 new leads, your cost per lead is $5.

2. Sales Velocity

What it measures: The average number of days between a new lead entering your database and converting into a customer.

Why it matters: Faster sales velocity indicates higher quality leads and a more effective sales process. Identify bottlenecks in your funnel.

How to calculate: Total time from lead creation to sale / Total number of leads converted

Example: If it took 90 days to close 10 leads, your sales velocity is 9 days.

3. Customer Lifetime Value (CLV)

What it measures: The total revenue generated from a customer throughout the entire relationship.

Why it matters: CLV shows the earning potential and loyalty of your customers. Optimize to retain high CLV customers.

How to calculate: Average Order Value x Purchase Frequency x Customer Lifespan

Example: If customers purchase $50 monthly over a 5-year lifespan, the CLV is $50 x 12 months x 5 years = $3,000

4. Marketing Contribution to Pipeline

What it measures: The percentage of sales pipeline revenue directly attributed to marketing activities.

Why it matters: Demonstrates marketing’s tangible impact on the sales process and revenue goals.

How to calculate: Revenue from marketing-generated leads / Total pipeline revenue

Example: If marketing drives a $100K pipeline out of $500K total, the contribution is 20%.

5. Net Promoter Score (NPS)

What it measures: Customer satisfaction and loyalty, based on their likelihood to recommend your brand.

Why it matters: Higher NPS indicates happier customers who drive growth through referrals and repeat business.

How to calculate: % Promoters (score 9-10) – % Detractors (score 0-6)

Example: If 60% are Promoters and 20% are Detractors, your NPS is 40.

Revolutionize Your Approach to Proving Marketing’s Worth

While ROI will always be an important metric, the marketing game has changed. To showcase the holistic business impact of your efforts, you need to move beyond vanity metrics like average ROI on marketing spend and track performance through every stage of the customer lifecycle – not just sales.

The metrics above show insights into lead quality, sales enablement, customer loyalty and brand sentiment. When analyzed together, they paint a comprehensive picture of marketing’s true contribution to revenue, pipeline and profits.

So be at the forefront of the ROI revolution. Empower your teams to showcase marketing’s worth across the organization with meaningful data. The time is now to break away from antiquated notions about proving value, once and for all.