How do you calculate marketing ROI?
Marketing ROI is the revenue your marketing produced, minus what it cost, divided by what it cost. If you spent $2,000 on Google Ads in a month and those ads produced $8,000 in jobs, your ROI is ($8,000 − $2,000) ÷ $2,000 = 3, or 300%. The hard part isn't the maths. It's knowing which revenue came from which channel.
Step 1: Capture the source of every lead
- Use call tracking numbers for ads and your Google Business Profile
- Pass UTM tags from ads and emails into your website forms
- Store the source on the contact in your CRM
- Ask “How did you hear about us?” as a backup, not the only method
Step 2: Track leads through to revenue
A lead isn't revenue. Use pipeline stages in your CRM (new, contacted, quoted, booked, won, lost) and record the job value when a deal closes. Now each dollar of revenue is linked to the channel that produced it.
Step 3: Compare channels fairly
| Metric | Formula | Why it matters |
|---|---|---|
| Cost per lead | Spend ÷ leads | Early signal, but can mislead |
| Close rate | Won jobs ÷ leads | Shows lead quality and follow-up |
| Cost per booked job | Spend ÷ won jobs | The number to compare channels on |
| ROI | (Revenue − spend) ÷ spend | Whether the channel pays |
Don't forget follow-up
Many Kelowna businesses blame a channel when the real problem is slow follow-up. If leads wait hours for a reply, close rates drop no matter where they came from. Fixing speed-to-lead often improves ROI across every channel at once. See revenue growth systems.
Run your own numbers with the growth ROI calculator.
About the author
Josh Blyth, Founder & CEO
Josh founded Digital Marketing Kelowna to give Okanagan businesses the kind of connected marketing that usually only big companies can afford: websites, search, automation and AI working as one system.