Why do you need to calculate ROI?
Posted: Tue Jan 28, 2025 5:32 am
ROI in marketing is calculated before making a management decision. Purchasing materials, equipment, choosing an advertising channel, deciding to wind up a loyalty program - all this requires comparing options. But the most effective way to use ROI is in 4 directions:
In direct sales - via e-mail marketing, website form, catalog. The indicator gives an understanding of whether it is necessary to adjust the business strategy.
When conducting promotions and sales . Comparison of indicators for different formats and periods of special offers will help to choose the best option for sales promotion.
When planning customer loyalty measures . Organizing and organizing afghanistan email list data helps maintain long-term contact with customers.
When measuring the effectiveness of measures to eliminate negative reviews . If the customer, after neutralizing the negative attitude, again becomes a regular buyer, this has a positive effect on the company's income.When ROI is useless
ROI is not universal. There are many situations where calculating it is a waste of time. Here are the most common ones:
A product that people think about buying for a long time. These are usually expensive goods – real estate, a car, building materials. The client will click on contextual advertising, think about it for six months and eventually buy it, but due to deferred demand it becomes impossible to calculate ROI.
Significant difference in profit from transactions. For example, a real estate agency sold 1 apartment this month, and 3 next month.
Long-term investment at the initial stage.
It is also difficult to calculate ROI when it is not entirely clear what exactly led to the conversion – the advertising channel or the manager’s negotiating skills.
In direct sales - via e-mail marketing, website form, catalog. The indicator gives an understanding of whether it is necessary to adjust the business strategy.
When conducting promotions and sales . Comparison of indicators for different formats and periods of special offers will help to choose the best option for sales promotion.
When planning customer loyalty measures . Organizing and organizing afghanistan email list data helps maintain long-term contact with customers.
When measuring the effectiveness of measures to eliminate negative reviews . If the customer, after neutralizing the negative attitude, again becomes a regular buyer, this has a positive effect on the company's income.When ROI is useless
ROI is not universal. There are many situations where calculating it is a waste of time. Here are the most common ones:
A product that people think about buying for a long time. These are usually expensive goods – real estate, a car, building materials. The client will click on contextual advertising, think about it for six months and eventually buy it, but due to deferred demand it becomes impossible to calculate ROI.
Significant difference in profit from transactions. For example, a real estate agency sold 1 apartment this month, and 3 next month.
Long-term investment at the initial stage.
It is also difficult to calculate ROI when it is not entirely clear what exactly led to the conversion – the advertising channel or the manager’s negotiating skills.