# Marketing ROI Calculator Excel

This marketing ROI calculator will help you in measuring marketing roi for any direct mail marketing campaign.

Direct marketing is a method of advertising direct to targeted customers using marketing materials such as catalogs, direct marketing email, telephone calls, and promotional letters.

Direct marketing usually involves a database or direct marketing mailing list of potential customer names, demographic characteristics and contact details. This form of marketing normally has a message encouraging a customer to carry out a specific action (call to action) such as to telephone a free phone number or click on a website page.

Direct marketing is increasing in popularity as it is capable of tracking results and costs to provide a demonstrable return on investment. Due to its lower cost direct marketing solutions are often used by smaller businesses where the cost of TV and radio campaigns is prohibitive.

## Marketing Return on Investment

The return on investment ROI is the profit from the campaign divided by the total cost of the campaign, and the marketing roi formula can be stated as follows:

ROI = (Income from conversions – Campaign costs) / Campaign costs

## Using the Marketing ROI Calculator

The Excel marketing ROI calculator, available for download below, shows how to calculate marketing roi by entering details relating to the marketing campaign as follows.

• The number of items of mail sent and the total campaign costs are entered. The marketing ROI calculator calculates the cost for each item of mail sent.
• The estimated response rate is entered. This is the percentage of items of mail sent which get a response, and is normally in the range of 1% – 2%. The marketing ROI calculator calculates the expected number of responses, and the marketing campaign cost for each response received.
• The conversion rate is entered. The conversion rate is the percentage of responses which are expected to convert and take the action required. The action required is typically, for example, to make a purchase from the business. The marketing ROI calculator calculates the expected number of conversions and the marketing campaign cost per conversion.
• The expected income from each conversion is entered. This is the income the business anticipates from the required action being carried out. For example, if the required action is to make a purchase from the business, the income from each conversion is the gross profit from that purchase. The marketing ROI calculator calculates the campaign profit or loss by deducting the campaign costs from the total income from all conversions, and uses this to work out the return on investment ROI for the campaign.