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How to Measure Marketing Automation ROI for Your Business

Posted: Mon Jan 20, 2025 6:15 am
by shukla7789
What is return on investment (ROI)?
Return on investment (ROI) considers how much you’re spending on a particular marketing tool or strategy and compares that to how much you’re earning from it. In short, it’s a way to measure the profit that something drives.

If you’re on this page, it means you have questions about the ROI of marketing automation tools. Maybe you’re wondering whether those tools are worth the investment, or maybe you already have one and want to know how to measure it.

We’ll cover several aspects of marketing automation on this page, including:

How to calculate your marketing automation ROI
How else can you measure the value of marketing automation?
How to improve your marketing automation ROI
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How to calculate your marketing automation ROI
Let’s start by talking about how to calculate the financial ROI of your marketing automation. This calculation is quite simple — simply subtract your sales growth from your marketing automation cost and divide the number you get by your marketing automation cost.

As a formula, it looks like this:

Marketing automation ROI = (marketing automation cost – sales growth) / marketing automation cost


ROI Calculator
Find your marketing ROI by completing the following:

Revenue
Total revenue generated from marketing
Marketing Costs
Total marketing expenses
ROI (%): 0%


Of course, the real trick is figuring out how to calculate marketing automation cost and sales growth. Each business measures those things differently, so it’s up to you to decide which expenses and earnings you count toward marketing automation.

How else can you measure the value of marketing automation?
When you think of ROI, the first thing that probably comes to mind is money. Typically, that’s the type of measurement that ROI is — a financial one. It’s a way of balancing expenses and earnings.

But ROI can be more than that. Financial ROI is the easiest one to track and measure, but when considering what you can get from a marketing automation tool, there are benefits beyond saving or earning you more money.