In any business, it is essential to monitor the performance of actions taken and evaluate the results obtained. It is important, for example, to know precisely the efficiency of investments made in campaigns. For this, it is necessary to analyze the fundamental indicators to understand the scenario in which an organization finds itself. The indicators to evaluate the performance of a company, known as KPIs , are the most important metrics to be evaluated in a business – they show the results of what is being done at the moment and also how to improve them. One of these metrics is ROI, which stands for Return on Investment, which, as the name itself already defines, is the return on investment that was made in some action.

In this post, we will explain in detail what ROI is

How to calculate it, its importance for your business, practical examples and the advantages of measuring the return on any and all investments. Continue Engineering Email List reading to the end and find out! After all, what is ROI? ROI is one of the most important KPIs to be analyzed. As it allows you to know how much money a company or lost with investments made in actions or campaigns carried out in different channels, mainly in the area of ​​digital marketing . This indicator provides the final result of each strategy launched, in addition to measuring the cost of everything necessary to reach the expected result, identifying which investments are worthwhile, such as marketing strategies, new tools and training, among others .

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In addition to verifying the investments that are worthwhile

The ROI also helps to optimize those that are already being made. So that they can perform even better. Knowing the return on investment CU Leads of specific actions. It is possible to plan goals based on tangible data and understand what is going well and what is not. And thus be able to change the strategy. How to calculate ROI But it’s no use knowing what ROI means. Recognizing its importance and not knowing how to calculate it. Well, the formula works like this: ROI = (revenue generated – costs) / costs x 100. Explaining: the calculation is done by subtracting. The investment gain that was made by the cost of it and then dividing. The result of the subtracting the investment cost.

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