Marketing MetricsFormula Guide
Complete guide to calculating and understanding key marketing metrics.
ROI (Return on Investment)
Formula
((Revenue - Investment) / Investment) × 100Example
If Revenue = $10,000 and Investment = $5,000 ROI = ((10,000 - 5,000) / 5,000) × 100 = 100%
Measures the profitability of your marketing investments.
CTR (Click-Through Rate)
Formula
(Clicks / Impressions) × 100Example
If Clicks = 100 and Impressions = 1,000 CTR = (100 / 1,000) × 100 = 10%
Measures the effectiveness of your ads or email campaigns.
Conversion Rate
Formula
(Conversions / Total Visitors) × 100Example
If Conversions = 50 and Visitors = 1,000 Conversion Rate = (50 / 1,000) × 100 = 5%
Measures the percentage of visitors who complete a desired action.
CAC (Customer Acquisition Cost)
Formula
Total Marketing Spend / Number of New CustomersExample
If Marketing Spend = $10,000 and New Customers = 100 CAC = 10,000 / 100 = $100
Measures how much it costs to acquire a new customer.
CLV (Customer Lifetime Value)
Formula
Average Purchase Value × Purchase Frequency × Average Customer LifespanExample
If Avg Value = $100, Frequency = 4/year, Lifespan = 3 years CLV = 100 × 4 × 3 = $1,200
Measures the total value a customer brings over their lifetime.
Email Marketing Metrics
Formula
Open Rate = (Opened Emails / Delivered Emails) × 100
CTR = (Clicks / Delivered Emails) × 100Example
If Opens = 200, Clicks = 50, Delivered = 1,000 Open Rate = 20%, CTR = 5%
Key metrics for measuring email campaign performance.
Social Media ROI
Formula
((Social Media Revenue - Social Media Costs) / Social Media Costs) × 100Example
If Revenue = $20,000 and Costs = $5,000 ROI = ((20,000 - 5,000) / 5,000) × 100 = 300%
Measures the return on your social media marketing efforts.
Content Marketing ROI
Formula
((Content Revenue - Content Costs) / Content Costs) × 100Example
If Revenue = $15,000 and Costs = $3,000 ROI = ((15,000 - 3,000) / 3,000) × 100 = 400%
Measures the effectiveness of your content marketing strategy.