June 24, 2018

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Marketing ROI - Part 2

Part 2 of 2


Advertising has the ability to be measured effectively using sales response tools such as:

  • Keyed phone numbers For a radio, TV, or outdoor campaign
  • PURLs and landing pages For web campaigns

The important thing to remember when measuring the analytic response is to take into the account the ancillary benefits of advertising (further dissemination of your marketing and branding message, and long-term relationship marketing benefits that may not be immediately apparent).

Client Retention Campaigns

Calculating ROI for relationship marketing can sometimes be tricky. Relationship marketing emphasizes customer satisfaction and retention, rather than direct response. While relationship marketing may not directly solicit sales, it can be more important than your new sales efforts to your long-term success. It is estimated that 80% of your sales come from 20% of your customers, so retaining your best customers is vitally important. And remember, it costs six times more to win a new client than it does to keep an existing one. Furthermore, if you engage your prospects in relationship marketing you can grow your customer base.

While it can be difficult to quantify results of relationship marketing, there are some key figures that you can analyze to see if your relationship marketing is effective. Over the long run, you can look for trends in the following key metrics:

  • Client retention rate
  • Average annual sales per client
  • Annual percentage increase in sales per client
  • Referral rate This is a measure of the client or candidate leads that come from referrals. With relationship marketing, the trend should show an increase.
  • Lifetime value ROI This is a measure of the lifetime profit contribution for a specific client divided by the average cost of the relationship marketing campaign.


Website ROI can be difficult to quantify. Very few if any clients will ever tell you that they are using your firm because of your website. However:

- Nearly 95% of prospects will check out your website BEFORE agreeing to a meeting with you.

- More than 90% of candidates will review a company's website before applying for a job.

- One in four candidates will decide NOT to apply with a company because of their website.

While it may be difficult to measure exact ROI from your website there are some measures that can be taken:

  • Offer response - An offer with an online reply form is an effective way to measure client response.
  • Job board Measuring job applications from your job board will allow you to see how well you are engaging your candidates.
  • Cost / candidate Computing cost/candidate in relation to other mediums is an analytical way to measure your site.
  • Retention and fall off rate - Google Analytics can tell you how long visitors stay on your site and how many pages they visit (Google Analytics can also be used to measure the effectiveness of any SEO initiatives that you enact).

Sales Force

When the economy is going strong many sales reps fall into the routine of order taking rather than selling. As a matter of fact, if you have sales reps on your staff that were hired after 2001 they may have no idea of how to sell staffing in a recession. In an economic slowdown, your sales force needs to know how to strategically sell staffing.

Call and appointment quotas can be effective means for stimulating sales, but they should always be analyzed in relation to other efforts. For example, measure the response to a cold calling initiative in relation to the cost of enacting a relationship marketing email campaign. Many times it is more cost effective to engage your prospects through relationship email marketing, and allowing your sales reps to stop cold calling and engage in high level strategic selling to key accounts.

One important measure of ROI for sales is the recruiting cost of filling a job order. Remember to keep in mind your profit margin on a position before using a call service, online job board, or placing a classified ad to source the position.


Remember, none of your sales and marketing efforts are done in a vacuum, so it can be difficult to come up with an exact ROI for many of your initiatives, but if you use the tools in this article you should be able to analyze the results of your campaigns more effectively.

Read Part 1

-Matthew Faso

Remember, Haley Marketing can help! Whether you need assistance with direct marketing to get the door open or nurture marketing to keep it open, call on us. We have two new, and very cost effective solutions that can help your business to stand-out, stay top-of-mind, and increase sales.

Just give us a call if you'd like to know more: 1-888-696-2900.