Below we tell you what ROI is , how to analyze it, why it is useful to know the ROI of actions you carry out in your business and how to improve it.
What is meant by ROI
As we mentioned earlier, ROI (Return on Investment) is a metric. In other words, an indicator that is used to know if the investment in an action has how to use overseas chinese in australia data to boost sales been recovered. Its calculation is nothing out of the ordinary, a basic and simple formula that allows you to know if a campaign, for example, has been effective:
The ROI result is the return obtained from an investment, a campaign, an event, an action, expressed as a percentage. The higher the ROI, the greater the return on investment and the greater the benefit obtained from carrying out that action.
Expressed another way: the ROI result tells us how much profit we have obtained for each euro invested.
For example, you organize a face-to-face event to which you invite potential clients to gain their trust and, with the aim, that some decide to hire your services: rent a room for €300, print some brochures for €100, invite them to a snack for
Congratulations, your event has been a success and the ROI of this action exceeds 100%.
How to analyze ROI?
Now, although calculating ROI is a simple matter, the truth is that analyzing this metric has its nuances, especially if we are talking about a marketing campaign.
It's not about getting down to calculating the ROI of all your actions with a calculator in hand. In fact, it's best to have a marketing or accounting analysis expert who not only calculates the ROI, but who has the ability to draw a conclusion on the performance analysis of the actions.
This means that you should not just focus on the ROI result figure . The idea is to create different scenarios to make certain assumptions or hypotheses.
For example, if it would have been possible to obtain those sales without having held the event.
Therefore, ROI calculations and subsequent analysis allow us to evaluate not only the results, but also to measure the impact of the actions, their performance and make more realistic predictions.
Why is it useful to know and analyze ROI for your business?
Now that you know what ROI is and why it is important to analyze it, it is time for you to know why it is useful to know the ROI for your business. In short, the advantages of calculating the ROI.
