Measurement & ROI:
How Do I Calculate ABX Program ROI?
ABX ROI is a finance-ready calculation based on incremental gross profit attributable to your ABX program minus fully loaded costs—then divided by those costs. This guide shows definitions, formulas, and a repeatable workflow Sales and Finance can sign off on.
Calculate ABX ROI as ROMI: ROI = (Incremental Gross Profit − Program Cost) ÷ Program Cost. Use incremental (with/without) revenue, not all revenue touched; convert to gross profit (revenue × margin), subtract fully loaded ABX costs (media, data, tech allocation, labor), and document attribution scope with Finance.
ABX ROI: The Non-Negotiables
Workflow: From Touches to Finance-Ready ROI
Use this 6-step process to produce a defensible ROI number and companion metrics executives trust.
ABX ROI Calculation Workflow
- Agree on scope & cohorts — Target account list, buying groups, sourced vs influenced rules, lookbacks, and control cohort definition.
- Measure lift — Use A/B geography, matched accounts, or pre/post baselines to estimate incremental revenue from ABX programs.
- Convert to gross profit — Incremental Revenue × Gross Margin % (use product/segment margins when possible).
- Sum fully loaded costs — Media, data, content, events, tech allocations, labor/agency, operations overhead.
- Compute ROI & payback — ROI = (Inc. GP − Cost) ÷ Cost; Payback (months) = Cost ÷ (Inc. GP ÷ months-in-window).
- Publish a finance pack — Show assumptions, sensitivity (±10% margin/attribution), and reconciliations to Finance pipeline and bookings.
ROI Methods Comparison Matrix
| Method | What It Answers | Formula / Definition | Best For | Watchouts |
|---|---|---|---|---|
| ROMI (Incremental) | Return on marketing investment after costs. | (Inc. Gross Profit − Program Cost) ÷ Program Cost | Quarterly ABX reviews; board summaries. | Requires high-quality lift estimate and margin accuracy. |
| CAC Payback | Time to recover ABX acquisition cost. | Program Cost ÷ Monthly GP from ABX-won deals | Cash efficiency & budgeting. | Ignores lifetime expansion unless included in GP. |
| NPV / LTV Uplift | Value created over lifetime with discounting. | ΔLTV (ABX cohort − control) discounted at WACC | Expansion & multi-year ABX programs. | Sensitive to churn/expansion assumptions. |
| Attributed ROI | Return using attribution model (e.g., W-shape). | (Attributed GP − Cost) ÷ Cost within model scope | Program/channel optimization. | Model bias; reconcile to Finance totals. |
Client Snapshot: Executive Workshops ABX
120 target accounts were split matched-pair. ABX accounts received 1:1 executive workshops and tailored content hubs. In 90 days, ABX generated $2.1M incremental revenue at 65% gross margin → $1.365M incremental GP. Fully loaded program cost = $420k. ROI = (1.365M − 0.420M) ÷ 0.420M = 2.25×. Payback at $228k GP/month ≈ 1.84 months.
Tie ROI to The Loop™ stages and publish a single ABX Finance Pack with scope, lift method, and reconciliations to pipeline and bookings.
ABX ROI FAQs
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