Marketing ROI | Sales Enablement

1. Conversion Calculations & Benchmarks
Updated Nov 6th, 2018
*Above Image:
Organic Search: 10,142 (Leads) / 657,052 (Visits) = 1.5% (0.0154356124)
[Visit-To-Lead]
Email Marketing: 5,187 (Leads) / 378,123 (Visits) = 1.4% (0.0137177585)
[Visit-To-Lead]
Organic Search: 36 (Customers) / 10,142 (Leads) = 0.4% (0.0035495957)
[Lead-To-Customer]
Email Marketing: 5 (Customers) / 5,187 (Leads) = 0.1% (0.0009639483)
[Lead-To-Customer]
Don Arceri

2. VISITORS (5-25%)- Companies that do 'online lead generation' effectively
convert 2-5% of their visitors.
- I.E. 500 Visitors at 2% conversion (500 x .02) = 10 Leads (Visit-To-Lead)
- I.E. 500 Visitors at 2.5% conversion (500 x .025) = 12.5 Leads (Visit-To-
Lead)
- I.E. 500 Visitors at 5% conversion (500 x .05) = 25 Leads (Visit-To-Lead)
- I.E. 500 Visitors at 10% conversion (500 x .10) = 50 Leads (Visit-To-Lead)
- I.E. 500 Visitors at 15% conversion (500 x .15) = 75 Leads (Visit-To-Lead)
- I.E. 500 Visitors at 20% conversion (500 x .20) = 100 Leads (Visit-To-
Lead)
- I.E. 500 Visitors at 25% conversion (500 x .25) = 125 Leads (Visit-To-Lead)
*LEADS (2-15%) - SEE ABOVE SCENARIO (Lead-To-Customer)
*Note: Create Matrices cheat sheet showing conversions from 1% through 25%
at intervals of 100 for visitors & leads.
May 25th, 2011 - Top 10% of HubSpot Customers (SEE BELOW IMAGE)
Monthly Visits: 161,797
Visit-To-Lead: 8.74%
Monthly Inbound Leads: 147
Lead-To-Customer: 53.48%
Monthly Customers: 562
*Below example calculation for "Organic Search": 9,395/276,942 =
.0339 = 3.4%

3. *Below example calculation for "Marketing Charts and Data":
20,271/85,245 = 0.2377 = 23.78%

5. ROI Calculation for Marketing Activities (Example)
If a sale was worth $x.xx, and the lead engages in only the download of an
Ebook, then that Ebook has an ROI equivalent of the total sale (minus the
cost to 'produce & promote' the Ebook).
If a sale was worth $x.xx, and the lead had engaged in 10 specific activities
– such as a downloading a whitepaper, attending a webinar, etc. – each of
those activities received one tenth of $x.xx. (minus the cost to 'produce &
promote' the Ebook).
Note: The expense for 'Produce & Promote' can include things like design
& copy, software subscriptions, and in some cases the time spent by
employees (if not using agency).
Ebook ROI Calculation (Lifetime Value):
Variable: Revenue Generated From Ebook
Fixed: Expense From 'Produce & Promote' (unless additional campaign
elements are implemented - typically a small increase).
Expense Breakdown for Ebook (Production & Promotion)
Employee Time: ($1,154)

6. 260 Work Days per year x 8 hours per day
2,080 hours per year
$60,000 salary employee
$60,000 / 2,080 work hours = $28.85 per hour
5 days x 8 hours (40 hours) to create Ebook
40 hours x $28.85 per hour = $1,154
Cost of Ebook for Employee Time = ($1,154)
Software Subscriptions: ($170.35)
HubSpot: $800/month
Adobe: $52.99/month
Shutterstock: $169/month
TOTAL: $1,021.99 per month
$1,021.99 / 30 days = $34.07 per day
$34.07 x 5 days (to create Ebook) = $170.35
Cost of Ebook for Software Subscriptions = ($170.35)
Total Expense (Employee Time + Software Subscriptions) =
($1,324.35)
ROI Calculation for Ebook: (CREATE EXCEL WORKBOOK)
Customer 1 (month 1):
Ebook Download: $600 purchase
Ebook Cost: $1,324.35 production
Ebook ROI: -$724.35 (production cost reduced)
Customer 2 (month 2):
Ebook Download: $1000 purchase
Ebook Cost: $724.35 production
Ebook ROI: $275.65 (production cost covered)
Customer 3 (month 3):
Ebook Download: $850 purchase
Ebook Cost: COVERED (add current ROI)
Ebook ROI: $1,125.65
Contact Lifecycle Stages: (Timeframe)

7. Subscriber > Lead = 'Number of Days'
Lead > MQL = 'Number of Days'
MQL > SQL = 'Number of Days'
SQL > Opportunity = 'Number of Days'
Opportunity > Customer = 'Number of Days'
Lead > Customer = 'Number of Days' (Full Sales Cycle)
Sales Enablement 'SLA Calculation' (Sales & Marketing Alignment)
In order to calculate the marketing side of your SLA, you’ll need the
following four metrics, which you can gather from your marketing
analytics tool and your CRM:
1. Total sales goal in terms of revenue quota
2. % revenue that comes from marketing-generated vs. sales-generated
leads
3. Average sales deal size
4. Average lead to customer close %
Then it’s time to do some calculations:
1. Sales quota multiplied by % revenue from marketing-generated leads =
Marketing-sourced revenue goal
i.e.) $560,000 x .70 (70%) = $392,000 [Marketing Revenue]
2. Marketing-sourced revenue goal / average sales deal size = #
customers needed
i.e.) $392,000 / $1,500 = 261 [Customers]
3. Customers / average lead to customer close % = # leads needed
i.e.) 261 / .09 (9%) = 2,903 [Leads]
Over time, a variety of factors can change the numbers used in your
calculations. It’s a good idea to recalculate the Marketing SLA periodically
-- either every month or every quarter. To do so, create a spreadsheet that
tracks your SLA calculations by month, which should include the following
metrics:
# marketing-generated leads
# of those leads that became customers
Revenue from those closed customers
Total revenue closed that month from marketing-generated leads

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Total revenue closed that month
Note: Average sales cycle (delayed revenue from 1+ month
opportunities)
With the above metrics, you can calculate the metrics used in your original
calculation on a monthly basis:
# marketing-generated leads that became customers / # marketing-
generated leads = lead to customer close %
i.e.) 261 / 2,903 = .09 (9%)
Revenue from closed customers / # of marketing-generated leads that
became customers = sales deal size
i.e.) $392,000 / 261 = $1,500
Total revenue closed from marketing-generated leads / total revenue
closed = % revenue from marketing-generated leads
i.e) $392,000 / $560,000 = .7 (70%)
To determine which values to use in calculating the coming month’s SLA,
you’ll want to take an average of 6-12 months, allowing for your average
sales cycle. For example, if your average sales cycle is 3 months and you’re
calculating the SLA for March 2014, take the average of the values for the
period June-November 2013.
Note: You can exchange months for the time frame used in your
business (quarter, year, etc.). Just make sure you use the same time
frame for both Sales and Marketing to maintain alignment.