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MARKETING SALES Aide: Simple ROI calculation

Measuring marketing communications results 

Granted that what follows is an oversimplication, it beats not having a clue about the value of your direct investment in marketing communications programs. 

You budget $10,000 for marketing communications this year. 

Your average commission income from an auto/home account or BOP is $200.  

So, you will need to produce 50 new accounts to cover your DIRECT Year 1 marketing communications investment.  

Your Lifetime Value of Customers (LVC) is 7 years.  So your ROI will be 6x $10,000 or $60,000 from the new customers gained this year minus your direct KEEP (retention) costs. 

 

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