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Analytics

What is ROI?

Also called: Return on Investment

ROI, or return on investment, compares what you gained from an investment with what it cost, showing whether marketing or software was worth it.

Return on investment, or ROI, measures the profit from an investment relative to its cost. The basic formula is gain minus cost, divided by cost. If you put in 100 and get back 150, your gain is 50 and your ROI is 50 percent.

It is the question behind every marketing, website or software decision: is this worth it? Comparing ROI across options helps you spend where it pays. It also keeps projects honest, since each one should connect to money earned or saved.

Not everything can be measured neatly. Brand building and time savings take longer to show, and attribution is imperfect. Be clear about what you count and over what time period. We set goals and tracking before a project starts, so you can judge the return later.

Example
A business automates a weekly manual report, calculates the staff hours saved, and compares them with the cost of the automation.

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