Don't overlook the diverse outcomes that can be gained from your investments
ROI is calculated based solely on the amount of money gained from an investment.
However, the "profit" gained from investment is not just sales revenue. Typical examples of "profit" that do not show up in monetary terms include the brand power of a company or product and customer satisfaction.
Brand power and customer satisfaction do not immediately translate into increased profits, but they can potentially lead to future profits by creating repeat customers and fans of your company or products, and by generating leads to potential customers through word of mouth.
In addition, for companies, activities such as volunteering and SDG initiatives that do not directly generate profits but enhance the company's image and presence are important. If you judge the value of a business only by ROI, you will miss out on many benefits, so be sure to analyze it comprehensively by combining it with various indicators.
Interpretation should be tailored to the investment horizon
While some businesses generate profits in the uk telegram phone number list short term, others require upfront investment and gradually build up profits over a long period of time.
In businesses that require upfront investment and build up profits over the long term, it is difficult to recoup profits immediately after starting the investment.
Therefore, the ROI will be low in the early stages of investment. Do not immediately conclude that an investment has failed just because the ROI is low at a certain stage, but rather consider it as the midpoint of a long-term business and interpret the ROI as an indicator to understand the current situation by comparing it with short-term, medium-term, and long-term goals within the overall schedule.
There's More Than One Way to Improve ROI
The first way to improve ROI is to increase sales.
However, since ROI looks at the balance between profits and investments, reviewing costs is also a necessary approach to improving ROI.
For example, by narrowing down your target user profile, you can reduce the number of ads you placed in a wide range of media and instead place ads in a more targeted medium... You can do that. Consider measures to reduce investment costs without significantly reducing profits, and aim to increase your ROI in terms of both sales and profits.