It is worth knowing how to interpret the ROI range. A positive result does not always indicate that the campaign and product launch have become profitable. Remember that variables such as the time it takes to make a given product, the time devoted to work, are also included. This also affects the profitability of profit.
Let’s start with positive and negative values
\ A negative ROI indicator means that the telegram number database product implementation and marketing campaign turned out to be unprofitable. The cost of implementation exceeded the profits that we potentially gained during the sale. However, here’s a note. Sometimes a negative ROI is predictable. Especially if we look at the product in the long term. In such a case, however, it is best to give up calculating the indicator and focus on further promotional activities . It is worth returning to calculating the indicator later.
Remember that in the long-term phase of operation, zero results often appear. This means that the cost of implementing the product and campaign is equal to the profits. Such results often appear with new products.
If the profit exceeds the costs, a positive result may appear. It is worth comparing this with the expectations and goals set in the strategy , the results of the competition, the general market situation and prospects (e.g. it is worth comparing the ROI in the same period, year to year). The higher the ROI, the better.
Is it worth paying attention to the ROI indicator?
It is worth noting that ROI is just one of why building your own free website isn’t a good idea the variables that show how profitable a given campaign is. It does not include, for example, additional benefits such as general brand promotion during the marketing campaign , potential profit in the form of acquiring regular customers and a long-term sales strategy for a product or service.
Moreover, ROI does not take into account inflation, seasonality, employee salaries, etc. However, it is a simple and easy to analyze tool. For this reason, it is a basic indicator used in marketing analysis and allows for making business decisions.
ROI is also a universal indicator, which also allows for a quick assessment of profitability
It also works for any type singapore number of marketing campaign ( from SEO, through mailings to influencer marketing). It can also be a complement to other indicators of activities such as NPV (the difference between net profits and budget expectations), IRR (internal rate of return in the long term), PP (the time it takes to return on investment) and SROI (assessment of the project’s social activity).
It is worth including multiple metrics in your campaign summary to determine whether the campaign was effective and brought the expected benefits, or whether it needs to be modified.
