Measuring the Effectiveness of Your Revenue Ecosystem

If growth activities may look like this:
• content marketing/thought leadership (blog or podcast)
• social media marketing
• paid advertising
• email marketing

How do you measure the effectiveness of your activities?

One school of thought is to measure by channel

base your return on investment based solely on 1:1 input:output.

This is a good starting point

however it’s limited.

Because when you build your revenue generating activities and habits

you start to see that it’s NOT the ONE thing but the combination of MANY things that get results

in other words you are creating

an ecosystem.

So how do you measure the effectiveness of this so called “ecosystem?”

You measure the effectiveness of your ecosystem by
• Adding all the revenue generating investments you make every month (ad spend, team, vendors, tools, anything having to do with GROWTH activities)
• Measuring the net new sales you generated in the given period

And from there, calculate
• your true cost of acquiring 1 more customer
• your return on revenue for that period OR if you focus on LTV, the net LTV of those new sales

Your return on revenue may be
• positive (it’s working)
• breakeven (it’s getting there)
• negative (if that’s not by design, somethings broken)

We will dive into how to optimize your RoR tomorrow.

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