This figure is essential for measuring the performance and effectiveness of a strategy or project, whether in marketing, sales, equity investment or any other area of business.
“What is not thailand business email list measured cannot be improved ,” said consultant Peter Drucker. Therefore, every effort made within a company must be measured in terms of conversion and results to calculate the ROI .
What is Return on Investment?
Return on Investment or ROI is the index that calculates the profits obtained from an economic investment. It allows us to know whether a specific action has been profitable or not.
That is, it is one of the financial KPIs that shows how many euros have been earned or lost for each coin spent on an action, project, event, etc.
Why is ROI important for business?
ROI gives us an idea of the health of our business and how successful our investments have been .
It is a crucial metric for several reasons:
Informed decision making : Enables businesses to evaluate the profitability of different strategies and decide where to allocate resources in the future.
Resource optimization : Identify those investments that generate the highest returns and help adjust strategies to maximize benefits.
Investment justification : Facilitates the justification of expenses to managers, investors or stakeholders by demonstrating the profitability of an investment.
Continuous Improvement : By measuring performance, adjustments can be made to improve ROI, leading to consistent growth.
