When it comes to evaluating the effectiveness of email marketing , different indicators can be used. We have written a separate article about the most popular KPIs in email marketing . Now we will talk about how to calculate ROI, as well as what this parameter is needed for and what nuances there may be when calculating and using it.
To avoid beating around the bush, let's start with a ready-made form for online calculation.
Online ROI Calculator
What is ROI and what is this indicator for?
ROI stands for Return On Investment, literally translated as “profit on investment”. Actually, it already becomes clear what this indicator reflects – the ratio of profit to investment.
Alternative names:
Return On Costs (ROC)
profitability, ROR (Rate Of Return)
or holding period return, HPR (Holding Period Return).
ROI (return on investment) is a financial indicator that south-korea phone number data reflects the ratio of profit to investment. ROI can be calculated for the entire period of the project (portfolio, asset, etc.) or for a specific period of time: for a month, year, quarter.
The most common situation where ROI is used is to evaluate the effectiveness of investments. The investor can understand how much the income has grown or fallen relative to the volume of investments.
But ROI can have other uses as well:
Determining the effectiveness of investments in a specific advertising campaign or advertising channel.
Identification of unprofitable areas of activity, projects, distribution channels, advertising, etc.
Finding the break-even point of a project or campaign.
Evaluation of the overall efficiency of investments, including for attracting new investors.