What is ROI?
ROI - Return on Investment - is a financial performance indicator twitter phone number data by companies to monitor the return on any type of investment. For example, to understand whether the acquisition of new equipment or the implementation of a marketing campaign is advantageous for the company.
Thus, calculating ROI allows us to identify the financial success of a given investment, the relationship between cost and benefit. It makes it possible to know the amount that the company can gain or lose with a particular investment.
Therefore, monitoring the return on investment is crucial for any business, allowing you to analyze what happened, foresee what could happen and identify, in the process, which aspects can be improved.
How to calculate ROI?
Calculating ROI is quite simple, using just one formula, which can be used to evaluate the business as a whole or to analyze a specific project or area.
ROI formula
Revenue is considered to be all amounts received through the sale of products and/or services. If you are analyzing only one area of the business or a specific project, you should only use the amounts related to those areas. For example, if you are calculating the ROI of products sold online, consider only the amounts coming from digital platforms.
In turn, costs are the expenses inherent to the project/area. Using the same example, costs may be related to the cost of using the platform, internet and communications expenses, and investment in content, advertising and marketing.
The final result of the formula is presented as a percentage, which makes it easier to understand what it represents.
