How To Calculate Marketing Efficiency Ratio in Sage CRM | Arithmix

Marketing is an essential aspect of any business, and it is crucial to measure its effectiveness. One way to do this is by calculating the marketing efficiency ratio. This ratio helps you determine the return on investment (ROI) of your marketing efforts. In this article, we will discuss what the marketing efficiency ratio is, when it is valuable to calculate it, and how to calculate it in Sage CRM.

What Is Marketing Efficiency Ratio?

The marketing efficiency ratio is a metric that measures the effectiveness of your marketing campaigns. It is calculated by dividing the revenue generated by your marketing efforts by the total cost of those efforts. The result is a ratio that shows how much revenue you earned for every dollar you spent on marketing.

For example, if you spent $1000 on a marketing campaign and generated $5000 in revenue, your marketing efficiency ratio would be 5:1. This means that for every dollar you spent on marketing, you earned five dollars in revenue.

The marketing efficiency ratio is a useful tool for evaluating the success of your marketing campaigns. It helps you identify which campaigns are generating the most revenue and which ones are not worth the investment.

When Is It Valuable To Calculate Marketing Efficiency Ratio?

Calculating the marketing efficiency ratio is valuable in several situations. It is especially useful when you are trying to:

• Determine the ROI of your marketing campaigns
• Identify which marketing campaigns are generating the most revenue
• Compare the effectiveness of different marketing channels
• Make data-driven decisions about your marketing strategy

By calculating the marketing efficiency ratio, you can make informed decisions about where to allocate your marketing budget and which campaigns to continue or discontinue.

How to Calculate Marketing Efficiency Ratio in Sage CRM

Calculating the marketing efficiency ratio in Sage CRM is a straightforward process. Follow these steps:

1. Identify the revenue generated by your marketing campaign. This can be done by tracking sales or leads generated by the campaign.
2. Determine the total cost of the marketing campaign. This includes all expenses related to the campaign, such as advertising costs, design fees, and staff time.
3. Divide the revenue generated by the total cost of the campaign. The result is your marketing efficiency ratio.

For example, if your marketing campaign generated $5000 in revenue and cost $1000, your marketing efficiency ratio would be 5:1.

Calculating the marketing efficiency ratio in Sage CRM is an essential step in evaluating the success of your marketing campaigns. By tracking this metric, you can make data-driven decisions about your marketing strategy and allocate your budget more effectively.

How Do You Calculate Marketing Efficiency Ratio in Sage CRM

Sage CRM 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 CRM 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 CRM, 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 CRM 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 CRM 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.