ROI (Return On Investment) is the economic value generated as a result of carrying out different marketing activities. With this data, we can measure the return we have obtained from an investment.
Why is ROI important?
One of the most important things to keep in mind when we carry out an Inbound Marketing strategy is to check its results and measure its profitability.
The ROI is very useful to evaluate this profitability, since it allows us to know how much each euro invested in a campaign has generated in sales.
Calculating it is essential to make the decision of future investments. We will have the information we need to assess which projects are most profitable and, therefore, set the path for us to follow in the future.
How to measure ROI?
One of the most important things to keep in mind when we carry out an Inbound Marketing strategy is to check its results and measure its profitability.
The ROI is very useful to evaluate this profitability. It becomes the relationship between marketing investment and the benefits generated , whether they are direct sales or obtaining leads.
To calculate it, the following formula is used:
ROI = (Profit – Investment) / Investment
Let's see it with an example. If we dedicate €500 in resources to carry out an Inbound Marketing course and obtain, after its completion, €1,500 of benefits, the return on investment will be 200%. That is, for every euro invested in the course, we obtain a return on investment of €2 (benefit).
This data is essential to evaluate a project. If the return on investment is positive it means that the project is profitable . Otherwise , if the result is negative, the investment is not profitable and we would be losing money .
Calculating the ROI is fundamental to making the decision of future investments . We will have the information we need to assess which projects are most profitable. In addition, they mark the path that we have to follow in the future.