How to measure ROI in marketing and use it effectively

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their activities. In this article, we will explain how to calculate it correctly and when it is appropriate to rely on it. We will also look at the advantages and disadvantages of this method, alternative ways of evaluating investments and offer tips on how to improve ROI to get the most out of your activities.

What is ROI and why you should track it
ROI is an abbreviation for the English words return on investment or return on investment . It is an indicator that is used to assess the success and effectiveness of an investment. Simply put, ROI allows you to find out if the money you invested has returned to you , ideally, if it has brought profit. The amount of ROI determines whether and how much the investment, or rather the activity in which you invest, is worth it.

Calculating ROI is not complicated: you subtract the costs from the profit, divide the result by the costs again, and multiply this result by 100 to get a percentage. If the result is greater than zero, the investment was profitable.

The formula for calculating ROI looks like this:


When and why to track ROI
Return on investment or return on investment is a basic and frequently used indicator (not only) in marketing, for several reasons:

Deciding on activities based on measurement results
ROI allows you to objectively compare different activities, projects or campaigns and azerbaijan phone number data see which ones are delivering the best results. This allows you to better allocate resources and develop only the activities that are truly worthwhile.

Identification of inefficient activities and better budget planning
If you find that some projects or campaigns have low or negative ROI, you can optimize them or even terminate them so that they do not unnecessarily burden your budget . Conversely, for activities with high returns, you should consider investing more in them and scaling them.

Business development and increasing competitiveness
Regular ROI tracking also allows you to see how your business is evolving over time. With ongoing results, you will improve your ability to quickly respond to market changes and optimize your tactics and plans . This will help you operate efficiently, minimize unnecessary costs, and grow steadily.