Return on investment (ROI) for marketing find out why it matters so much!

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safi2021
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Joined: Tue Feb 07, 2023 11:11 am

Return on investment (ROI) for marketing find out why it matters so much!

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It is essential to monitor some key performance indicators for proper business management. One of the most important is the marketing ROI, that is, the return on investments obtained with marketing actions. The issue is that many managers still don't know the concept of ROI and don't even know how to apply it in practice — a big problem. By applying it, it is possible to prioritize investments, identify what has really generated returns and make strategic decisions. With that in mind, we have created a small guide especially for you. Today, you'll find out what marketing ROI is, its importance and how to monitor it in practice. Good reading! Marketing ROI concept ROI is an acronym for Return On Investment, translated to Return On Investment. It is one of the most used indicators worldwide, allowing managers or entrepreneurs to have a clear perspective on the percentage of return on an investment.

This indicator can be used after carrying out a certain activity, seeking to verify the final results. Another possibility is to use it as a predictive analysis, aiming to predict whether or not a particular investment will be profitable. Calculating ROI is relatively simple. It consists Sweden WhatsApp Number List of the ratio between the profit obtained in an operation (or that will be obtained, if it is a predictive analysis) and the total amount invested for it. In this way, it is possible to know whether or not the investment made was worth it. Why calculate the ROI of marketing in the company The lack of monitoring of indicators is a factor that culminates in the low competitiveness of companies, resulting in their bankruptcy in the medium term. According to a SEBRAE report , out of every ten companies that close, six suffer from a lack of performance indicators.

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As said ROI is one of the most important indicators and ensures a systemic view of a given business activity. By applying the calculation, the manager can decide whether or not to continue investing in a stock, according to the benefits brought to the company. Thus, decisions are no longer subsidized only by the manager's “guesses” and start to have consistent bases of analysis. Consequently, the company becomes more competitive in the market, eliminates ineffective investments and optimizes its profitability. Calculation is also useful for focusing on marketing campaigns that really pay off. If internal communication actions are helping to increase employee engagement, for example, it is possible to safely reinforce investments. How the ROI calculation can be applied ROI must be calculated based on real data about marketing actions and their costs.
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