# How To Calculate Marketing Efficiency Ratio in Zendesk | Arithmix

Learn how to calculate the marketing efficiency ratio in Zendesk with our step-by-step guide. Improve your marketing strategy and track your ROI with ease.

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.

## 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. This ratio helps you determine how much revenue you are generating for every dollar you spend on marketing.

For example, if you spent \$10,000 on a marketing campaign and generated \$50,000 in revenue, your marketing efficiency ratio would be 5. This means that for every dollar you spent on marketing, you generated \$5 in revenue.

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

Calculating the marketing efficiency ratio is valuable in several situations. Firstly, it helps you determine the effectiveness of your marketing campaigns. If your ratio is low, it means that your marketing efforts are not generating enough revenue to justify the cost. In this case, you may need to re-evaluate your marketing strategy and make changes to improve your ROI.

Secondly, the marketing efficiency ratio is useful when comparing different marketing campaigns. By calculating the ratio for each campaign, you can determine which one is more effective in generating revenue. This information can help you allocate your marketing budget more effectively and focus on the campaigns that are generating the most revenue.

## How To Calculate Marketing Efficiency Ratio

To calculate the marketing efficiency ratio, you need to know the revenue generated by your marketing efforts and the total cost of those efforts. The formula for calculating the ratio is:

Marketing Efficiency Ratio = Revenue / Total Cost

For example, if your revenue is \$50,000 and your total marketing cost is \$10,000, your marketing efficiency ratio would be:

Marketing Efficiency Ratio = \$50,000 / \$10,000 = 5

As mentioned earlier, a ratio of 5 means that for every dollar you spent on marketing, you generated \$5 in revenue.

### In Conclusion

The marketing efficiency ratio is a valuable metric that helps you determine the effectiveness of your marketing campaigns. By calculating this ratio, you can determine the ROI of your marketing efforts and make informed decisions about your marketing budget. Remember to calculate the ratio for each campaign and use the information to allocate your marketing budget more effectively. With these tips, you can improve your marketing strategy and generate more revenue for your business.

## How Do You Calculate Marketing Efficiency Ratio in Zendesk

Zendesk 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 Zendesk 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 Zendesk, 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.