HubSpot-ROI-calculation: How to determine your return on investment (+ free calculator)

What is ROI and why is it important?

The return on investment (ROI) indicates how much profit you achieve from a particular investment. The general formula is as follows:

ROI = (profit - investment) / investment x 100

A precise calculation of the ROI enables effective budget planning, as unnecessary expenditure can be avoided and funds can be used in a targeted manner. In addition, success can be better measured and tracked in order to optimize the impact of marketing and sales activities. A well-founded ROI calculation also helps with important decision-making processes and shows stakeholders the value of an investment.

How to calculate the HubSpot ROI in just a few steps

• First of all, it is important to record all costs associated with the use of HubSpot. These include license costs for the various HubSpot hubs such as Marketing, Sales, Service, CMS and Operations. Customer service costs must also be taken into account. Not forgetting the time your team spends on onboarding and using the platform. The concept of Total Cost of Ownership (TCO) is suitable for this.

• In the next step, you should determine the revenue generated by HubSpot. Marketing and sales-related data such as the conversion rate, the number of marketing leads and the completion rate are used for this.
  
  

• As soon as these figures are available, the actual calculation can be carried out. An example: If your investment in HubSpot is EUR 10,000 and the additional revenue generated by HubSpot is EUR 50,000, the calculation is as follows:
  
  ROI = (50,000 - 10,000) / 10,000 x 100 = 400 %
  
  This means that every euro invested returns four euros.

Why many companies calculate ROI incorrectly

Many companies make mistakes when calculating ROI that lead to an incorrect assessment of profitability. One of the most common mistakes is taking too short-term a view. The full benefit of HubSpot often only unfolds after several months, which is why a long-term analysis is crucial.

Another common mistake is to ignore indirect effects. Improved processes and time savings in the team have an enormous long-term effect that is not immediately visible in the figures. In addition, the wrong comparative figures are often used. The ROI should not only be compared with previous marketing measures, but also with future potential in order to obtain a realistic assessment.

How HubSpot increases ROI

HubSpot offers numerous functions that contribute directly to improving ROI. The automation of marketing and sales processes not only saves time, but also increases the conversion rate. In addition, data-driven analyses enable targeted optimization of campaigns so that precisely those measures that make the greatest contribution to ROI can be strengthened. Smart CRM functions also improve lead qualification, which leads to a more efficient sales pipeline.