Marketing and business terms can be a beast. For non-experts, it can all seem like fancy mumbo-jumbo. Here’s a funny way to keep track of some basic ROI terms! Let’s start at the beginning: ROI is short for Return on Investment. In layman’s terms, this measures what you get back compared to what you put in. So, let’s say you invest in ads, an email campaign, or a new website design. The goal in any of these ventures is to achieve the maximum return for minimal investment. The higher the ROI, the better.
As a business owner or marketer, it’s important to keep track of your ROI because it can be a good indication of what’s working and what needs to be changed.
Of course, some investments can be difficult indicators to measure ROI. For example, implementing Search Engine Optimization in a website while increasing your social media presence can make it difficult to determine if your optimization was indeed profitable or not.
When measuring ROI, monetary investment isn’t the only thing that you can consider. If, for example, you set up a strong social media presence without spending the extra cash, this doesn’t mean that you invested 0$ and now you’re gaining 1000$. Time is also an investment, so you can divide your earnings by the time you spent in the process.
If you want to know more about the in and outs of ROI, in super trendy hipster terms, check out today’s infographic!
