Measuring A New Clients ROI
New clients are the lifeblood of any business and effectively measuring their ROI can be tricky but it’s important in the development and refinement of your online marketing campaigns. The first question to ask yourself is: what is a new client worth? To answer that you must first estimate the total revenue that a new client is likely to generate over a period of 12 months. The second question would be: what percentage of new clients refer their friends or family to you? That number will very depending on your business category but it’s safe to assume that most new clients tend to refer others to your business in the early stages of your relationship, if they refer at all.
For now, lets say that new client referrals are 25%. Therefore, if a new client’s estimated first year revenue is $1,200 and the referral rate is 25%, the new client value is $1,500. If the cost of marketing to attract each new client is $125, the ROI for your marketing campaign would be 1,200%. Basically, in this example, for every $125 spent on marketing $1,500 is returned in revenue to your business. How can that be bad?
Whether your marketing in Denver, Colorado or across the country Madwire Media can help. We specialize in inbound marketing, from SEO, PPC, and SEM, and we’ll tailor an Internet marketing program for your business that will increase your conversions, leads, sales and profits. Give us a call today!
Tags: Colorado SEO, Denver search engine optimization, Denver SEO, Fort Collins SEO, inbound marketing, internet marketing, Search Engine Optimization (SEO)
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