Half the money I spend on advertising is wasted; the trouble is I don’t know which half. , John Wanamaker.
This 100, year ,old quote still rings true today. The difference? Modern businesses have no excuse , ROI can be tracked with the right metrics.
1. Customer Acquisition Cost (CAC)
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How much you spend to acquire one new customer.
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Formula: Total Marketing Spend ÷ Number of New Customers.
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Lower CAC , more efficient campaigns.
2. Customer Lifetime Value (CLV)
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The revenue a customer brings during their entire relationship with your brand.
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Comparing CLV to CAC shows whether your marketing is truly profitable.
3. Conversion Rate
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Percentage of leads that turn into paying customers.
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Track across ads, landing pages, and email campaigns.
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Small improvements , big ROI gains.
4. Return on Ad Spend (ROAS)
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Revenue earned per $1 spent on ads.
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Helps identify your most profitable channels.
5. Organic Growth Metrics
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SEO traffic, engagement rates, email open/click rates.
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These compounding signals show if your marketing is building long-term momentum.
Measuring ROI isn’t about drowning in numbers , it’s about focusing on the 5 metrics that matter. When you track these consistently, you’ll know exactly where your marketing money is working hardest