# How To Calculate Marketing Efficiency Ratio in Freshsales | Arithmix

Learn how to measure the effectiveness of your marketing efforts in Freshsales with the Marketing Efficiency Ratio. Our step-by-step guide will help you calculate this important metric and optimize your marketing strategy for better results.

Marketing efficiency ratio is a metric that helps businesses understand how effective their marketing efforts are in generating revenue. It is a ratio of the total revenue generated by marketing efforts to the total cost of those efforts. In other words, it measures the return on investment (ROI) of marketing activities. By calculating this ratio, businesses can determine whether their marketing efforts are profitable or not.

## What Is Marketing Efficiency Ratio?

Marketing efficiency ratio is a metric that helps businesses understand how effective their marketing efforts are in generating revenue. It is a ratio of the total revenue generated by marketing efforts to the total cost of those efforts. In other words, it measures the return on investment (ROI) of marketing activities. By calculating this ratio, businesses can determine whether their marketing efforts are profitable or not.

Marketing efficiency ratio is calculated by dividing the total revenue generated by marketing efforts by the total cost of those efforts. The result is a ratio that indicates how much revenue is generated for every dollar spent on marketing. For example, if a business spends \$100 on marketing and generates \$500 in revenue, the marketing efficiency ratio would be 5:1.

Marketing efficiency ratio is an important metric for businesses to track because it helps them understand the effectiveness of their marketing efforts. By tracking this metric over time, businesses can identify trends and make adjustments to their marketing strategies to improve their ROI.

## When Is It Valuable To Calculate Marketing Efficiency Ratio?

Calculating marketing efficiency ratio is valuable for businesses of all sizes and industries. It is particularly useful for businesses that rely heavily on marketing to generate revenue, such as e-commerce businesses, software companies, and service providers.

Calculating marketing efficiency ratio is also valuable for businesses that are looking to optimize their marketing strategies. By understanding which marketing channels are most effective in generating revenue, businesses can allocate their marketing budget more effectively and improve their ROI.

Finally, calculating marketing efficiency ratio is valuable for businesses that are looking to measure the success of their marketing campaigns. By tracking this metric over time, businesses can determine whether their marketing efforts are improving or declining in effectiveness.

In conclusion, calculating marketing efficiency ratio is a valuable metric for businesses to track. By understanding how effective their marketing efforts are in generating revenue, businesses can make data-driven decisions to optimize their marketing strategies and improve their ROI.

## How Do You Calculate Marketing Efficiency Ratio in Freshsales

Freshsales itself isn’t naturally geared towards letting you calculate complex metrics like Marketing Efficiency Ratio. As an alternative, teams typically use products like Arithmix to import data from Freshsales and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Freshsales, combine it with data from other systems, and create calculations like Marketing Efficiency Ratio.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.