Use this marketing ROI calculator to see what one new customer is really worth to your business.
Why this one matters most
Plenty of businesses spend on marketing without ever checking the arithmetic.
Say your average sale is KSh 4,000. Say you keep 25 percent of that. Say you are thinking about KSh 80,000 a month on marketing. You would need about 80 extra customers every month just to break even. For most small businesses that is not ambitious. It is impossible. Better to know now.
Three ways people get this wrong
- Counting revenue instead of profit An extra KSh 500,000 in sales at a 15 percent margin is KSh 75,000 of profit. If marketing cost KSh 90,000, you lost money on a campaign that looked like a win.
- Forgetting capacity Doubling enquiries is only useful if you can serve them. A clinic that is already full should spend on higher value work, not more enquiries.
- Forgetting repeat customers If a customer buys four times, your maths is completely different from a business that sells once. That is what lets you outbid a competitor for the same click.
That is a useful result, not a failure. It usually means the budget is too big for your margin, or your close rate is the real problem, or your average sale is too small for paid traffic. In all three cases, fixing what you already have beats buying more traffic. We will tell you that rather than sell you a retainer.
