Why is ROI important to the success of my business?

[zihadhasan01827]

As you can see in our ebook Digital Marketing 3.0 , the topic is very broad and offers an incredible variety of methods and tools for those who want to do business on the Internet. But, many options can confuse even those who already know the subject well.

Aside from that, remember that Digital Marketing actions, although reliable and effective, can offer different results depending on your market niche, target audience, among other details.

Therefore, monitoring ROI is essential. It helps answer some deep questions about your business, such as these:

What are the company's biggest sources of profit?
What are the most effective communication channels?
Are marketing initiatives performing as expected?
Has the sales process proven to be efficient?
Is customer service contributing to customer netherlands mobile database loyalty or falling short?
Of course, it is useless to expect to find detailed information only by analyzing a specific period of return on investment , but it will give you a good direction of where to look.

Then, using other important metrics and indicators , you can drill down to where improvements need to be made.

How to calculate ROI?
The easiest way to calculate ROI is by following this formula:

ROI = [(income - costs) / costs] x 100

You can use it holistically, to analyze the business as a whole, or specifically, to evaluate a project or area, individually. By working this way, it is possible to identify errors and problems in any part of the business.

In addition, the final result is in percentage, which makes it easy to compare the ROI of different actions or strategies. To make this process easier, we have created an interactive calculator , so you just need to enter your numbers and press the "calculate" button.