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ROI or Return on Investment is the return on investment.
For the business world, every investment has a cost, and of course, measuring or evaluating the return on investment is important to see whether what we invest in is worth it or not (the measurement of return is called ROI).
As for the types of business investments that can measure ROI, they are all types of investments that require capital, whether it be marketing, advertising, AdWords, hiring an organizing team, creating campaigns, setting up booths, or even hiring staff at the event.
Why is this ROI measurement important?
For marketing teams, it is to measure work performance . Or for business, it is to measure the profits from investments. In order to be able to analyze further which investments are worth investing in and which investment areas should be fixed, improved or adjusted to gain more profits.
The higher the ROI value , the better.
Because it means that you get a very high return or profit compared to the cost of investment.
Or simply put, you may invest in a campaign with a small cost, but you will get profit from that campaign many times more than the cost you invested. This is called a high ROI .
The ROI calculation formula is easy to do as follows: ROI
Example: Cipher Co., Ltd. in a on for 10,000 baht. After the seminar, many customers were interested in Inbound Marketing services, and that month, more than 250,000 customers used Inbound Marketing services.
ROI can be calculated by inputting the data into the following formula:
You can see that from all the data, the can be calculated as high as 2400 % .
It shows that this investment yields very good profits, or in other words, excellent profits, because the ROI number is very high.
In general, any investment with an ROI of more than 100 % is considered a worthwhile investment.
If any investment has an ROI of less than 100 % , it is considered that the investment should not be invested anymore. The profit is not worth it. It should be improved or changed to another type of investment instead.
