ROI is the return on investment ratio. It helps determine whether a project is profitable given all the investments made in it. In difficult times, companies often cut their promotion budget, which is not a prudent step. Marketing is a necessary investment to generate income. Assessing the return on investment can help you distribute your investments wisely, and thus increase the benefit from your investment.
How to calculate:
ROI = ((Revenue - Costs) / Costs) * 100%
How to improve the indicator:
Knowing ROI analytics is very important. It helps you understand whether you are making money or losing money. ROI is usually calculated when you need to make a management decision on kenya mobile phone number list a purchase, suspension of an advertising strategy or loyalty program. For example, before hiring a new hairdresser, it would be useful for a beauty salon to calculate how many clients a day he/she will be able to cut and how this will affect the income. A beauty salon can calculate the ROI for each purchase and decide what to buy. The main criterion is that the purchased product or service (for example, new equipment) will bring economic benefits. The same applies to the purchase of a software product; will it be able to provide time savings, operational efficiency and marketing improvements?
8. Churn rate (Customer churn rate)
Sales should focus not only on acquiring new customers, but also on retaining existing ones. This quality KPI measures and tracks lost customers and revenue over time. It tracks customers who tried your product but decided it wasn’t worth paying for (or weren’t worth paying so much for).