Usually, people don’t tend to put words like marketing and math together. However, they really should. I realize that coronavirus and the stay at home orders that are happening across America are dominating headlines. These are difficult times. It’s tough to suddenly pivot and deal with the changes that are affecting every aspect of your professional and personal life. We’re right there with you.

And if you’re like us, you’re at home thinking about what you can do NOW to make sure that your business is ready for when America gets back to work. I have a suggestion. But it’s going to require you to crunch a few numbers, so get ready.


Why math is important in marketing

It’s one thing to create marketing goals and carry out those goals. However, if you don’t bring math into the equation, then those results mean nothing to you. Ultimately, you need to measure the results to determine if the campaign you’re running is successful or not.

The goal is to figure out if the money you’re spending on marketing is yielding the results that you want and in a financially feasible way. You need to calculate this out. Otherwise, you’re going to quickly waste your marketing budget on campaigns that don’t work.

If you do some marketing math now and look at some past campaigns, you may be able to determine which campaigns yielded great results for you. And which ones flopped. You might be surprised at what you find out.


Quick and Easy Math: Return on Investment (ROI)

A lot of people love the return on investment (ROI) measurement because it’s a fairly easy way to measure the overall success of your campaign.

Let’s say you spent $1,000 on a marketing campaign. That campaign directly translated into $4,000 in sales. Then your ROI is $3,000. That’s a 300% return on your investment. You calculate ROI by looking at your sales, subtracting expenses (in this case marketing) and you get your ROI.

If you divide that ROI by the initial investment, you can get the percentage ROI.


More Easy Math: Cost Per Lead/Sale

Another way to look at a marketing campaign is to see just how much it cost you for every sale you made. For example, let’s take another look at that $1,000 marketing campaign. If it yielded four sales, then the cost per sale was $250. If it yielded 10 sales, then the cost per sale would be $100. You can do the same math for leads.

To calculate the cost per lead or sale, simply take the amount you spent on the marketing campaign and divide it by the number of leads or sales the campaign generated.


Tougher Math: Conversion Rate

Another way to measure a campaign is called the conversion rate. This is where you look at how many people did what you wanted and compare it to how many people interacted with your marketing campaign overall.

Google Ads has a pretty good explanation of how the math works, so we’ll go with them.

“Conversion rates are calculated by simply taking the number of conversions and dividing that by the number of total ad interactions that can be tracked to a conversion during the same time period. For example, if you had 50 conversions from 1,000 interactions, your conversion rate would be 5%, since 50 ÷ 1,000 = 5%.”

Piece of cake, right?


Math that Takes Time: Customer Lifetime Value

This last one is one that takes years to gather but could be a great window into which marketing campaigns do the best for you. The Customer Lifetime Value (CLV), according to Shopify, is: “…the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.”

To calculate the CLV: take the average value of a customer’s purchase, multiply it by the number of times the customer will buy each year and multiply that by the average length of a customer relationship. That’s your CLV.



Analyzing your marketing campaigns is essential for narrowing down what reaches your target audience and ultimately makes the sale and what falls on deaf ears. It’s important to the success of your business that you take the time to evaluate all of your major marketing efforts.

Good luck and stay safe and healthy!


Written by Erika Towne