ROI (Return on Investment)
Definition: A performance measure used to evaluate the efficiency of an investment or compare investments.
Understanding ROI (Return on Investment)
Return on Investment is a financial metric that measures the profitability of an investment relative to its cost. It's calculated by dividing net profit by investment cost and multiplying by 100 to get a percentage. In marketing, ROI helps measure campaign effectiveness and allocate budgets efficiently. A positive ROI means the investment gained more than it cost; negative means a loss. ROI should be considered alongside other metrics for a complete picture.
More business Terms
KPI (Key Performance Indicator)
Measurable values that demonstrate how effectively a company is achieving key business objectives.
Target Audience
The specific group of people a product, service, or marketing message is intended to reach.
Value Proposition
A clear statement that explains how your product solves customer problems, delivers benefits, and why customers should choose you.