How To Calculate Marketing Efficiency Ratio in Sage Contractor | Arithmix

Marketing efficiency ratio is an important metric that helps businesses determine the effectiveness of their marketing efforts. It is a ratio that compares the cost of marketing to the revenue generated from those marketing efforts. In this article, we will discuss how to calculate marketing efficiency ratio in Sage Contractor, a popular accounting software used by many businesses.

What Is Marketing Efficiency Ratio?

Marketing efficiency ratio is a metric that helps businesses determine the return on investment (ROI) of their marketing efforts. It is calculated by dividing the total revenue generated from marketing efforts by the total cost of those efforts. The result is a ratio that indicates how much revenue was generated for every dollar spent on marketing.

For example, if a business spent $10,000 on marketing and generated $50,000 in revenue, the marketing efficiency ratio would be 5:1. This means that for every dollar spent on marketing, the business generated $5 in revenue.

When Is It Valuable To Calculate Marketing Efficiency Ratio?

Calculating marketing efficiency ratio is valuable for businesses of all sizes and industries. It helps businesses determine the effectiveness of their marketing efforts and identify areas for improvement. By calculating this ratio, businesses can make informed decisions about their marketing budget and strategy.

For example, if a business has a low marketing efficiency ratio, it may indicate that their marketing efforts are not generating enough revenue to justify the cost. In this case, the business may need to reevaluate their marketing strategy and make changes to improve their ROI.

On the other hand, if a business has a high marketing efficiency ratio, it may indicate that their marketing efforts are generating a significant amount of revenue for a relatively low cost. In this case, the business may want to allocate more resources to their marketing efforts to further increase their ROI.

In conclusion, calculating marketing efficiency ratio is a valuable metric for businesses to determine the effectiveness of their marketing efforts. By using Sage Contractor or other accounting software to calculate this ratio, businesses can make informed decisions about their marketing budget and strategy to improve their ROI.

How Do You Calculate Marketing Efficiency Ratio in Sage Contractor

Sage Contractor 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 Sage Contractor 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 Sage Contractor, 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.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Marketing Efficiency Ratio in Arithmix

Calculating metrics like Marketing Efficiency Ratio is simple in Arithmix. Once you've created your free account, you’ll be able to import your Sage Contractor data, and use it to create natural language formulas for metrics like Marketing Efficiency Ratio.

Arithmix is designed to give you the power to build any calculations you want on top of your Sage Contractor data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.