Campaign ROI Analysis Report: Calculation for ROI Percentage | Salesforce Exam ADX-201

ROI Calculation for Campaign | Salesforce Exam ADX-201

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Question

The Campaign ROI Analysis Report uses which of the following calculations to determine the ROI percentage for a campaign?

Answers

Explanations

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A. B. C. D.

D.

The Campaign ROI Analysis Report is used to determine the return on investment (ROI) for a marketing campaign in Salesforce. The ROI percentage represents the amount of revenue generated compared to the amount of money spent on the campaign.

Out of the given options, the correct calculation to determine the ROI percentage for a campaign is:

D. (Amount of Won Opportunities minus Actual Cost) / Actual Cost.

This formula calculates the ROI as a percentage by subtracting the actual cost of the campaign from the total amount of won opportunities, and then dividing that result by the actual cost.

Let's break down this formula further:

  1. Amount of Won Opportunities: This refers to the total revenue generated by the campaign. When a lead or contact is converted to an opportunity and that opportunity is closed as "Won", the amount of that opportunity is added to the total revenue generated by the campaign.

  2. Actual Cost: This refers to the total cost of running the campaign, including any expenses such as advertising, events, and staffing costs.

  3. (Amount of Won Opportunities minus Actual Cost): This is the total profit generated by the campaign.

  4. (Amount of Won Opportunities minus Actual Cost) / Actual Cost: This calculation determines the ROI percentage by dividing the total profit generated by the campaign by the actual cost of running the campaign.

For example, let's say that a marketing campaign generated $100,000 in revenue (Amount of Won Opportunities) and cost $50,000 to run (Actual Cost). The total profit generated by the campaign is $50,000 ($100,000 - $50,000), and the ROI percentage would be calculated as follows:

ROI = ($100,000 - $50,000) / $50,000 = 100%

Therefore, the ROI percentage for the campaign is 100%, indicating that for every dollar spent on the campaign, $2 were generated in revenue.