ROI for Ads - Use Weighted Pipeline Deal Amounts for more actionable calculation

[benzil]

At the moment, ROI for Ads are very difficult to use in a meaningful way. 

We have two options to calculate ROI at present: 

A. Revenue from your deals

What this does:

this calculates the revenue from deals that are in a won state and uses this value to attribute ROI against the ad spend. 

Why is this a limited benefit?

It is only possible to see the "benefit" attributed to a particular campaign's Ad spend once all the deals that resulted from the clicks have matured to either a "closed" or "won" state. 

This means that we have to wait for a long time before we can compare the effect of changes we make to campaigns.

In a practical sense, this means for us, that the ROI figure we see 'this month' will only be meaningful if we know that all, or the majority of deals have matured. If we see a negative ROI, it doesn't necessarily mean anything, because the deals haven't yet matured - so the ROI figure, in this case, is impractical to use. 

B. Estimate revenue

What this does

this option allows the user to type in a fixed average sale price, and average sales conversion rate from contact to customer, to attribute a value to each contact.

Why is this a limited benefit?

This option doesn't account for the fact that
a) deals have different values
b) deals have different changes of being sold to

so is a very imprecise measure of ROI. 

The problem with this is it doesn't provide feedback to the team that is creating and managing the PPC ads, which Ads are producing more profitable Ads - because it assumes that all deals are 'equal' - when of course, they are not. 

My Recommended Solution

So my suggested solution to this is to use data that Hubspot already knows and utilises. 

Hubspot already accounts for the fact that not all deals are created equal, and not all deals have an equal chance of becoming closed/won. 

So the solution is, to my mind, simple & elegant.

Use this data to drive the ROI figure.

Hubspot could simply take the weight deal amount (the deal figure that the salesperson enters combined with the deal stage probability to close) , and use this as part of the calculation that drives ROI.