How do I measure ROI from my trade business marketing?

Measuring marketing ROI for trade businesses requires tracking specific metrics and using the right calculations. Here's your comprehensive guide:

Essential ROI Metrics:

• Cost per Lead (CPL):
  • Formula: Total Ad Spend ÷ Number of Leads
  • Example: £1,000 spent ÷ 50 leads = £20 CPL
  • Benchmark: Aim for £15-£30 CPL for most trades
• Lead-to-Customer Conversion Rate:
  • Formula: (Number of Customers ÷ Number of Leads) × 100
  • Example: 10 customers from 50 leads = 20% conversion rate
  • Benchmark: 15-25% is typical for trade services
• Customer Lifetime Value (CLV):
  • Formula: Average Job Value × Number of Jobs per Year × Years of Loyalty
  • Example: £500 × 2 jobs × 3 years = £3,000 CLV
• Return on Ad Spend (ROAS):
  • Formula: Revenue from Ads ÷ Cost of Ads
  • Example: £5,000 revenue ÷ £1,000 ad spend = 5:1 ROAS
  • Benchmark: Aim for 3:1 minimum, 5:1 is excellent

Tracking Tools and Methods:

• Digital Campaigns:
  • Facebook Ads Manager
  • Google Ads Dashboard
  • Call tracking numbers
  • Form submission tracking
• Offline Marketing:
  • Unique phone numbers for different flyer areas
  • Asking customers how they found you
  • Tracking postcode response rates

ROI Improvement Strategies:

• Use TradeAdPlanner's postcode targeting to focus on high-value areas
• A/B test ad creatives and messages
• Optimize landing pages for conversion
• Follow up leads quickly (within 5 minutes when possible)
• Build a review collection system