How to calculate ROI (return on investment)
ROI is a great way to put into perspective what Frederick is doing for you and your business! Let’s get started on running some numbers.
First we will navigate to your Frederick account, and take a look at the dashboard report.
The data we will look at is “Estimated Revenue”. I recommend looking at completed months as opposed to months in progress, so make sure to start at least 1 month in the past. I also recommend taking at least 3 months worth of data into account to get the best idea of how your account is doing.
For March 2017, we can see that the revenue generated was $5,274. That is a really good month! Let’s note this number, and change our date range to February by toggling the highlighted drop down menu.
February received $5,038, now taking a look at January:
January received $1,519. This is a great example on why need a bigger sample size than one month for accurate averages. Business can fluctuate based on changes in season, life events, and different promotions.
Now that we have our revenue sets, we can calculate an average. To do this, we will add up the months revenue, and divide by how many months we had in total (for example: If you took a look at 5 months of data, we would divide by five).
Month 1 revenue + Month 2 +Month 3
Total # of months
$5274 + $5038 + $1519
This calculation comes out to: $3943.66. Awesome!
Next we need to take into account the investment you put into the program to calculate ROI.
The example account we are looking at has over 10,000 contacts, which puts them into the $299/mo pricing tier. We will take our average revenue per month, subtract this $299 investment, and divide that number by our monthly subscription price. That calculation looks like this:
Average revenue – Monthly subscription price
Monthly subscription price
$3943.66 - $299
After some quick calculations, we come up with: 12.19! In other words, through appointments and revenue generated, Frederick is multiplying your initial investment by 12 times!
These are awesome results, and the sky is the limit on where this number can go.
Have questions on what you can do to maximize your reults? You can always reach out to us at email@example.com for an account review by one of our specialists!