How much value can you get from a marketing tool?
example:
Tool: marketing analytics service, combining several data sources
Cost: $100 per month
New Profit: $1000 from highlighting easy wins in SEO and PPC
Hours Saved: 10 hours of manual data gathering and formatting per month
Cost Per Hour Work: $50 per hour, estimate of all-inclusive employee cost. You could use value produced per hour, if the person’s time is very profitable.
Total Value: $1000 + 500 = $1500
Total Profit: $1500 – $100 = $1400
Tool ROI: $1400 / $100 = 1400%
Buy The Tool? Yes
note: Profit generated and hours saved will involve estimates. The confidence level of the estimates will influence the ROI needed to justify a purchase.
Was this useful? Check out our growing collection of marketing calculators.