An Introduction to Return on Investment (ROI)
In this article:
- What is Return on Investment (ROI)?
→ Why is it important to measure?
- Marsello's ROI definition
→ Revenue generated using Marsello definitions
→ Marsello investment
- Common Questions
What is Return on Investment (ROI)?
Marketing ROI is the return on your investment from your marketing strategies. It measures the money received compared to the initial investment.
Why measuring ROI is important
Marketing ROI helps determine the success of your marketing efforts and also assists in making marketing budget decisions for the present and future initiatives. It defines (with real numbers) the success of your marketing and empowers you with data to help you steer your marketing efforts forward. For example, your store may see a really good ROI on SMS Campaigns, therefore you could put more focus towards the SMS campaigns of your marketing strategy.
The ROI goal is to make more than you invest, i.e. make more than a dollar for every dollar you spend.
Marsello's ROI definition
ROI in your Marsello admin compares the total revenue you’ve generated as a result of the marketing you’ve run using Marsello over your investment in your Marsello subscription.
ROI = Total revenue generated using Marsello / Total amount spent on Marsello
Because Marsello integrates seamlessly with your eCommerce and POS, results are accurate tracked against sales data, giving you ROI you can trust.
Revenue generated using Marsello definitions:
🤖 Total Revenue Generated Using Marsello Definition: The total amount of revenue that is directly attributed to Marsello's marketing features.
🤖 Email Campaigns Attribution Definition: Any order that has been made within 10 days of the customer opening and/or clicking on the email campaign or any order that includes a discount code sent via the email campaign.
🤖 Automation Attribution Definition: Any order that has been made within 10 days of the customer opening and/or clicking on the automated email or any order that includes a discount code sent via the automated email.
🤖 Loyalty Program Attribution Definitions:
- Loyalty Reward revenue: Any order that includes a loyalty reward discount code.
- Referral Program revenue: Any orders that have been made by a successfully referred customer.
🤖 SMS Campaigns Attribution Definition: Any order that has been made within 10 days of the customer receiving the SMS message.
📝 Note: Marsello only attributes discount codes that have been created by the Marsello platform, it does not include discount codes manually created in your POS and/or eCommerce platforms.
The Marsello investment is the total amount that you have spent on your Marsello subscription since installation.
- Where can I see more information on the revenue generated?
In your Marsello admin, you can see the total amount of revenue generated. If you would like to see what marketing features helped generate this revenue, you can see a breakdown on your Marsello Performance insights dashboard.
📖 Learn more: Understanding your Marsello Performance & Customer insights
- How can I improve my ROI?
The businesses that are experiencing 10X ROI on Marsello are using a combination of features.
We recommend trying the following features to help improve your ROI:
> Create a loyalty program with 4+ earn point options & at least 3 rewards
> Enable at least 4 Automations, for example; Thank first-time customers, Happy Birthday, Win-Back customers, and the Abandoned cart recovery automation.
> Send at least 1 email campaign monthly
> Send at least 1 SMS campaign monthly
📖 Learn more: https://www.marsello.com/features
Remember our Customer Success team are here to help, so please don't hesitate to reach out through the chat icon. We'll happily have a look at your current Marsello marketing and offer suggestions on how to help you increase your ROI.
- How is ROI calculated during the free trial period?
Marsello still uses the same ROI calculation, however, the Marsello investment is based on an estimate on what your monthly subscription would be.