It turns out : ROI = (700,000 – 300,000) ÷ 300,000 × 100 = 133%
That is, we see that by reducing costs, the payback has also improved.
Sometimes, to increase ROI, it is necessary to pay attention to other factors that in one way or another affect expenses or revenue. For example, due to poor performance of the delivery service, some transactions are cancelled and this affects revenue. Or advertising and marketing activities are aimed at an audience that is not actually among the target customers.
It turns out that ROI optimization comes down to reducing costs and increasing revenue. But in each specific case, there will be a reason for low ROI. It is necessary to evaluate all stages, actions, tools that, one way or another, can affect profit generation.
TO SUMMARY
ROI is an indicator of return on investment that helps to quickly assess the current situation in a business.
ROI differs from ROMI and ROAS in that it shows the payback brazil email list of the business as a whole. If ROI is calculated only by marketing channels, then in fact we are talking about calculating ROMI.
ROI is useful to calculate when making decisions on further investment in a project and when tracking payback.
ROI does not work for all areas. For example,with a long sales cycle, the indicator will not show the real picture.
ROI is calculated based on data such as the sum of all investments and gross profit. A positive result is considered to be a value of 100% or higher.
ROI is optimized by reducing costs and increasing revenue, as well as by improving all related business processes.
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