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Measuring the ROI of Inbound Marketing

Measuring the ROI of Inbound Marketing. Presented by: Gabe Wahhab. President – Savvy Panda. @ gabewahhab @ savvypanda. Hi!. Your Expectations. More Traffic. More Leads. More Sales. Lower Cost. The Goal for Today. Cost of Customer Acquisition. COCA.

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Measuring the ROI of Inbound Marketing

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  1. Measuring the ROI of Inbound Marketing Presented by: Gabe Wahhab President – Savvy Panda @gabewahhab @savvypanda

  2. Hi!

  3. YourExpectations

  4. More Traffic

  5. More Leads

  6. More Sales

  7. Lower Cost

  8. The Goal for Today

  9. Cost of Customer Acquisition COCA Cost to Acquire Customer CAC

  10. Calculating COCA Ex. Startup SaaS Company Over 1 YearMarketing Salaries - $45,000Marketing Expenditures – $45,000Sales Salaries - $68,000Sales Expenditures - $2,000Total Cost – $160,000Customers Acquired – 40 COCA = 160,000 / 40 = $4,000

  11. Life Time Value LTV

  12. Calculating LTV Ex. Startup SaaS Company Over 1 YearAvg Customer Yearly Revenue - $12,000Profit Margin – 80% Avg Yearly Churn - 33% (aka 3 years)LTV = ($12,000 * .80) * (1 / 0.33)LTV = ($9,600) * (3) = $28,800 LTV = $28,800

  13. COCA:LTV Ratio Ex. Startup SaaS Company Over 1 YearCOCA = $4,000 LTV = $28,800COCA:LTV Ratio $28,800 / $4,000 = 7.2 COCA:LTV Ratio 1:7.2Profit – $992,000

  14. SaaS Minimum1:3

  15. Closed Loop Reporting

  16. Closed Loop Profit Ex. Startup SaaS Company Over 1 YearCustomers Acquired – 40 LTV = $28,800 $28,800 x 40 = 1.152M Pre Sales Cost Profits Generated – 1.152M

  17. Forecasted Value

  18. No Closed Loop Profit Est. Ex. Startup SaaS Company Over 1 YearSQL Leads Generated – 80 Avg Sales Close Ratio - 50%LTV = $28,80080 x .5 = 40$28,800 x 40 = 1.152M Estimated Pre Sales Cost Profits – 1.152M

  19. But What If…

  20. Questions Presented by: Gabe Wahhab President – Savvy Panda @gabewahhab @savvypanda

  21. Thank You

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