Every business decision—whether it’s hiring new talent, switching vendors, or launching a marketing campaign—comes down to one critical question: what’s the return on investment? For marketers and business leaders, measuring ROI is both an art and a science. It’s about more than crunching numbers; it’s about understanding efficiency, long-term value, and the hidden costs that can quietly erode profit.
To shed light on this challenge, we asked eight business leaders to share how they evaluate ROI in real-world scenarios. Their insights span from customer lifetime value to operational efficiency, offering practical frameworks you can apply to your own organization.
Track Revenue Changes, Not Just Costs
I measure ROI by considering the actual change that the decision will bring and not necessarily the cost. If I introduce a new worker, I consider the number of additional jobs we would be able to accomplish per week without any delays. Assuming we complete an additional three jobs each week and our average job generates $740, that employee will generate an additional $2,220 of weekly revenue. If their total cost to the business is under that figure, they are returning value. I do not wait three months to track that. I start counting the weeks since week one and adjust the plan according to what occurred in the first 30 days.
For vendors, I monitor waste reduction and delay on back orders. If a supplier switch reduces the average delivery time from four days to one, and this reduces three follow-up calls per job and avoids rescheduling, then that means I have actual savings. It saves time, maintains jobs in motion and eliminates rework. I monitor lost revenue and not just expenses. Assuming that the delays used to cost us two job slots per week, that is more than 1400 dollars wasted. I use those numbers to decide whether a vendor is worth keeping.
On the marketing side, I break things down channel by channel and compare it to completed job revenue, not just clicks or calls. If we spend $800 on Google Ads in one week and bring in 11 new confirmed bookings from that same week, then I check what those jobs were worth. If they pulled in $7,600 in revenue, that campaign worked. If it has only produced calls but no bookings were made, that means I will flag it right away. I do not count ROI in terms of engagement. I use it as a measurement of the work we have booked and the time the work entailed. When we earn 5,000 dollars and consume 40 hours of labor to achieve that goal, I reconsider. It is more about efficiency rather than noise.
Steven Bahbah, Managing Director, Service First Plumbing
Measure Long-Term Value Beyond Initial Investment
With new employees, such as a senior artist, we would not only measure work done, but also monitor a 10 percent decrease in the average delivery time within six months, a five percent rise in their client satisfaction, and their capability to train junior personnel and save approximately 500 dollars per junior artist per quarter in training expenditures. An example of implementing the ROI of a flexible work policy is that when applied, the policy increases employee retention by three percent, and decreases the number of days per employee per year of absenteeism by one day.
On the marketing side, we are interested in Customer Lifetime Value (CLTV) compared to Customer Acquisition Cost (CAC), and we realize that a client that we acquire through a $2,000 LinkedIn campaign, who brings us in $100,000 over their lifetime is a significant investment. We also follow Brand Equity Multiplier on content marketing, with a $10,000 investment, we can expect a 20 percent quarter over quarter growth of organic traffic and the possibility of shortening sales cycles by 15 percent, turning one 10k project into a 10k-20k project each two months by increasing our authority.
Alex Smith, Manager & Co-owner, Render 3D Quick
Focus on Customer Journey Metrics, Not Sales
The area where I closely consider ROI is marketing, especially online advertising. I do not only consider the total sales or impressions but I also consider the micro conversions within the funnel. As an example, when we are running a campaign, I will measure the number of people who go through the ad and then interact with it, followed by signing up to take our product quiz or subscribe to our mailing list. That will tell me whether or not the message is hitting home long before we ever reach the point of purchase.
After that I look at customer acquisition cost (CAC) vs lifetime value (LTV). When we are bringing back customers that not only purchase once but repurchase or even subscribe to additional services, this is where ROI comes in. I also count the rate of customers who referred other people after passing through a campaign, that referral percentage is a hidden layer of return to which we pay close attention.
This precise approach assists me in choosing which advertising medium and messages, in fact, creates long-term value rather than one-time sales.
Kira Byrd, Co-Founder & Co-Owner, Curl Centric
Data-Driven Practice Growth Yields Exceptional Returns
I am tuned into what makes my practice successful, such as getting competent clinicians to work there and placing advertisements about my Bartholin laser therapy. My compass is tracking ROI, I want every dollar to go toward the growth and patient care. I gauge the value of a new physician assistant when I hire him or her. They will handle 25 more patients a month at 175 each and earn 4375 compared to the 4000 salary. Referrals are fueled by Yelp reviews that glow after their work, which add 12,000 dollars a year. It is worth spending that money.
I am precise when it comes to marketing. The Facebook ad campaign costing me 2,500 dollars of doing a good advertisement to the Intimate Renewal procedure resulted in 12 new patients with the procedure costing 2,000 dollars each and therefore the ROI was 860 percent ($24,000 – 2,500)/2,500 x 100). Special landing pages are used to monitor each booking. A change of laser cartridge supplier reduced the cost by 15% or 7,500 per year and increased patient outcomes. My mission is obvious, I will utilize data to create a practice that patients adore. Any investment has to bring in, more patients, better care, increase profits. It is the way I am in the lead in cosmetic gynecology.
Dr. David Ghozland, Owner and OB/GYN, David Ghozland
Look Past Numbers to Long-Term Business Impact
ROI measurement in advertising has to do with the ability to measure what matters, your bottom line. Consider an example, for example, in which we spent 10,000 on focused advertising and got 300 new clients. That provided us with a cost per acquisition of 33 dollars. The average client was worth 800 dollars. The payoff was not on the initial expense, it was on the long term expansion. The actual lesson is to concentrate on long-term value rather than the temporary benefits.
The figures are not the full picture when it comes to implementation of new vendors or policies. The actual payoff is manifested in more even operations, a better team, and better relationships with clients. We have experienced improved retention and operations even though those do not immediately make it to the spreadsheets. What counts is the long-lasting impacts on your business, team and customers. The pay back is much more than the direct cost.
Dr. Eleonora Fedonenko, Doctor of Medicine, Your Laser Skin Care
Calculate Full Sales Costs, Not Just Leads
I think looking at ROI on sales efforts is a really interesting exercise that many business owners or sales team leaders don’t consider.
When I think about ROI on sales efforts, I’m looking beyond just ad spend vs lead volume. Instead, I’m factoring in the full cost of getting that lead across the finish line. That includes time spent following up, labor hours from the sales team, and the actual value of the contract, both short and long term. Some clients take so much hand-holding that even if they close, the ROI just doesn’t pencil out. I think more business owners need to be honest about that math.
In some cases, the smartest move is to walk away. If a lead requires an abnormal amount of attention or keeps pushing boundaries, we’ll either let them go or introduce things like requiring a signed Client Service Agreement in order to continue the scoping conversation, or paid consulting time during the sales process. It sets a clear line and protects team capacity for higher-ROI opportunities.
Especially in early-stage or service-based businesses where labor is the biggest cost, ROI isn’t just a marketing number but should include operational cost as well.
Makena Finger Zannini, CEO, The Boutique COO
Cut or Double Down Based on Results
ROI is how I decide what to kill, what to keep, and what to double down on.
I measure ROI using ROAS from acquisition spend, factoring in product cost, shipping, and revenue to track actual profit return. For non-paid efforts like new creative, website improvements, or other owned assets, I look at how those changes impact conversion rate at each stage of the funnel. When I invest time into improving product pages for our weight lifting belts or work with athletes promoting our lifting gear, I track if it lifts conversions. If it doesn’t move the needle, I cut it or course correct fast. Everything in the business needs to either improve the funnel or grow the margin. Simple.
Adam Boucher, Head of Marketing, Turtle Strength
Align ROI Metrics With Specific Business Goals
The process of ROI measurement starts by defining specific goals and selecting relevant performance indicators (KPIs) that connect to particular initiatives. The implementation of new hires or policies requires productivity metrics and cost savings and employee retention rates as measurable indicators. The evaluation of vendor changes depends on cost efficiency and quality improvements and time savings metrics.
The return on investment (ROI) measurement for marketing activities depends on three key performance indicators: customer acquisition cost (CAC), lifetime value (LTV) and conversion rates. The use of analytics tools enables organizations to monitor campaign performance which leads to data-based adjustments. The evaluation of success requires aligning ROI metrics with business objectives to achieve a complete understanding of performance.
Linda Chavez, Founder & CEO, Seniors Life Insurance Finder
ROI Is Not One-Size-Fits-All
What works for a fast-growing e-commerce brand may look very different for a professional services firm or healthcare practice. The key is to define success upfront, measure outcomes that align with your goals, and stay willing to adjust when the data tells you something new.
By learning from these eight approaches, you can sharpen your ROI strategy and ensure every dollar spent—whether on marketing, staffing, or vendors—delivers meaningful business growth.