From Cost Center to Growth Engine: Measure Marketing ROI Effectively

As a marketer, have you ever been asked to justify marketing spend?

Have you ever been asked by a potential customer how you plan on tracking ROI on marketing activities?

For many small and mid-sized businesses, marketing often feels like an expense that’s hard to justify.

• In fact, 61% of business leaders say proving ROI is their biggest marketing challenge, according to Hubspot.

Measuring ROI doesn’t have to be complicated! You just need to track the right things and link them back to business goals. A classic mistake is to ask, "how much should I spend on marketing?" - start with the right question, which is, "what are the business goals I want to achieve?" and work backwards from there to understand how marketing will help you achieve it.

Every euro or dollar spent on marketing should work as hard as possible to grow your business. Here’s how to make sure it does.

1. Start with Clear Goals

ROI looks different for every company. For some, it’s about bringing in new leads. For others, it’s about building visibility in the market or keeping customers loyal. The important part is to set clear, measurable goals upfront—otherwise, you won’t know what success looks like.

Tip: Write down one main marketing goal per quarter. The most realistic are those linked to lead generation and sales acquisition like “Generate 50 qualified leads” or “Increase Q4 sales by 5%”. Keep in mind in this case, it is also best to define what a qualified lead looks like, what the difference is between a Marketing Qualified Lead and a Sales Qualified Lead and who will be responsible for further qualifying each lead.

2. Focus on a Few Key Metrics

You don’t need dozens of dashboards to measure ROI, just a few key numbers that matter:

• Leads & Conversions: How many people have a need and show interest, and how many become paying customers?

• Customer Acquisition Cost (CAC): How much does it cost to get a new customer? On average, B2B companies spend about $205 per lead (but that can vary depending on sector).

• Customer Lifetime Value (CLV): How much is a customer worth to your business over time? If CLV is higher than CAC, your marketing is paying off.

• Revenue from Marketing Activities: Even a simple spreadsheet can help you connect sales back to specific campaigns.

3. Use Affordable Tools

You don’t need enterprise software to track ROI. Tools like Google Analytics, HubSpot CRM (or other similar CRMs), or even LinkedIn campaign reports can give you plenty of insights into which activities are working.

A MarTech stack analysis can help sort this out.

4. Think Beyond Quick Wins

Yes, it’s important to get leads and sales. But marketing also builds brand trust, which is critical for long-term success. According to Nielsen, brand awareness drives up to 60% of sales over time, so don’t underestimate the value of staying visible.

This is typically the part of marketing that's hard to see in numbers. For example, in B2B marketing, keeping your LinkedIn page frequent and relevant is crucial even if the immediate result isn't qualified leads. The growth and engagement numbers are just as important to make sure your brand is relevant.

5. Review, Learn, and Adjust

ROI measurement should be a regular habit.

• Companies that review marketing results quarterly are 30% more likely to outperform competitors (McKinsey).

Look at what’s working, stop what isn’t, and double down on the channels bringing results.

Where a Fractional Marketing Officer Can Help

For many small and mid-sized companies, the challenge isn’t just measuring ROI, it’s having the time and expertise to set up the right strategy in the first place. That’s where a Fractional Marketing Officer (FMO) can make the difference. Instead of hiring a full-time CMO, an FMO provides senior-level marketing leadership on a flexible basis to help define goals, select the right metrics, and build campaigns that drive measurable growth.

For small and mid-sized businesses, every marketing euro counts. By setting clear goals, tracking the right metrics, and reviewing regularly, marketing can shift from being a “nice-to-have” expense to becoming a true growth engine.

Want to learn more about growing businesses with marketing strategies that lead to measurable ROI so your investment creates the impact you need? Schedule a discovery call to learn more!