Marketing ROI - Recurring and/or Irregular Revenues Excel Model Template

Description
This is a calculation that poses problems to most SaaS businesses or businesses with recurring irregular revenue. What is the actual ROI and average ROI of your marketing spend?

It gets complicated because the revenue that comes in from marketing spend and or sales spend may happen in irregular increments and for an in-determinant amount of time.

This templates paves the way for you to calculate such a figure accurately. As long as you known what clients are attached to a given spend, this will work.

So, the usability is pretty straight forward. It allows for an entry of spend per month. Then, based on knowing what clients could be directly attributed to that spend, you track the revenue of those clients into the future and the logic always measured that against the initial spend of the acquisition month. The model goes for up to a period of 10 years.

The measurement is in cohorts and you will have an ever-changing ROI potential as the revenues from those acquired clients comes in. This is going to be easier to use for firms that have a lower amount of larger clients, such as professional services firms. We are talking hundreds and maybe thousands, but not 100's of thousands or millions.

I have added in a time-based return figure, called IRR (internal rate of return), which differs from ROI in that it discounts the amount of time it takes to earn revenue. All it means is that eventually the IRR of a client will reach a figure and stop growing no matter how much revenues comes in from them in the future. The ROI will always grow if revenue keeps coming in.

I believe the IRR figure is a deeper and smarter number to track, but both are helpful in determining the actual production you are getting out of your spend.

This tracker is for actual figures so you would update it each month based on earned revenues that you can attribute to a given months' spend.

Additional logic has been added to track the amount of months it takes to earn back the marketing spend in a given month with revenue of clients attained from that spend as well as color-coding to better visualize things as good or bad.

In order to do these calculations, multiple matrix tabs were added in order to query.

You may also like this advanced customer acquisition cost and lifetime value calculator: https://www.eloquens.com/tool/KLeAcXmE/startups/software-as-a-service-saas/saas-metrics-excel-template-learn-how-to-calculate-and-track-actuals


This template is also included in one bundle:
- All Models Bundle: https://www.eloquens.com/tool/P8Y4TX4v/finance/financial-forecasting-models/financial-models-120-useful-and-usable-logic