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Return on Investment
This workbook supports the Return on Investment subject at www.marketingmo.com.
Guidance for this workbook is available in the Marketing MO planning and management app. If a worksheet has gray and white cells, the white cells inside the gray area are inputs and the results will be
displayed in a printable format in the white area of the sheet. If a worksheet is all white, then the inputs and printable report are the same. Some of the worksheets are linked to previous worksheets. Feel
free to enter numbers into previous worksheet cell references if you haven't completed the previous sheets. Calculations and formulas aren't protected, so check blank cells in the report sheets before
entering values.
Some of the worksheets have tables with summary calculations at the end of the table. If you need to insert more rows, insert them in the middle of the data entry fields so the sum formulas capture the new
fields. Some of the worksheets have hidden rows or columns for formula calculations and deleting them will modify some of the features. If you modify worksheets and wish to return to the original format,
simply download a fresh copy from your account at www.marketingmo.com.
Copyright Moderandi Inc 2012
27.10.a
Calculate the cost of goods for a product if your finance team doesn't have the figure.
Results
27.10.b
Calculate the cost of goods for a service if your finance team doesn't have the figure.
Results
27.10.c
27.10.d
Determine the appropriate size of your marketing budget based on your annual goals & threshold ROI.
Results
Calculates your marketing budget maximum based on your ROI goals and revenue goals.
27.10.e
Marketing Investment
27.10.f
Determine a projected ROI or actual ROI for a marketing campaign, using one of three different methods: COG Method, Gross Profit Method, or CLV Method.
Results
27.10.g
Determine a projected ROI or actual ROI for a marketing campaign, using alternate methods.
Results
27.10.h
Determine the incremental ROI for increasing marketing expenditure -- to determine net ROI including the additional investment.
Results
27.10.i
27.10.j
Records your sales process conversion rates in case you haven't completed 5-Sales Process.
Results
Calculates conversion rates at each step in the sales process, as well as a final customer conversion rate.
Time period:
Total materials $
Labor specifically to produce the product (ie laborers who are assembling)
Total labor $
Production facility expenses (if facility is solely for this product; or use a % of
overhead)
TOTAL COGS $
#DIV/0!
2
Time period:
Total $
Total $
Total $
Total other $
TOTAL COGS $
#DIV/0!
3
Product or service
257811714.xls - c
COGs
Update date
If you're using the traditional formula, your ROI figure will be much higher than the formula that includes overhead and incremental expenses. However, the latter calculation is a
truer measure. See your finance team for assistance.
Total overhead $
Total revenue projected for the time period
% of revenue to allocate to overhead
#DIV/0!
Value
A
B
$
$
C
D
E
#DIV/0!
Value
F
G
$
$
H
I
J
Marketing Investment
Quickly tally the items in your campaign.
List all of the budget items for this campaign -costs that are just for this campaign and cannot
be recovered once implemented
Total $
257811714.xls - e
Cost
#DIV/0!
From worksheet a.
Marketing investment
Total units sold
Price per unit
Total revenue
$
$
Marketing investment
Gross Profit %
ROI: (D-A-E-F)/A
#DIV/0!
-
B
C
C
D
Gross Profit
#DIV/0!
ROI: (D-A-E-F)/A
#DIV/0!
-
#DIV/0!
Marketing investment:
# of new customers
Value of each new customer (CLV)
Projected profit
ROI (D-A)/A
257811714.xls - f
A
B
C
#DIV/0!
#DIV/0!
Now choose whether to calculate your ROI based on LIFETIME VALUE or Revenue / Gross Profit for this single purchase
F
Average lifetime value
*Can be calculated in 28.3 - CLV Calculation
Total value delivered (E*F)
#DIV/0!
OR
Total units sold from the campaign
257811714.xls - g
#DIV/0!
Projections for
ADDITIONAL
campaign
contribution ONLY
Current Campaign
Marketing investment
# of impressions
Expected response rate
Total responses: d = a * c
% of responses that will become customers
a
c
d
e
# of customers: f = d * e
Value of each new customer (CLV)
f
g
h
i
j
$
$
$
$
a
c
d
e
f
g
#DIV/0!
$
$
$
#DIV/0!
$
$
$
#DIV/0!
#DIV/0!
ROI
Hurdle rate
Current Campaign
Increased Investment
Revised ROI*
#DIV/0!
#DIV/0! *
#DIV/0!
Decision
#DIV/0!
*If increased investment ROI is negative, you may choose not to implement, even if it still produces a revised ROI higher than your hurdle rate.
257811714.xls - h
Campaign name
Date launched
Length of
campaign
Marketing
Investment
Hurdle rate
Portfolio Category
Projected ROI
Actual ROI
Hurdle rate
Success Criteria
(X)
Cost per X
Date last
updated
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
257811714.xls - i
10
Step #
1
2
3
4
5
6
7
8
9
10
100.0%
257811714.xls - j
Calculation:
Cumulative % of total
prospects who reach
this step
100.0%
11