Return on Investment (ROI) is a term used to measure the value of an investment for your business. ROI is typically expressed as a percentage and is mostly referred to when discussing financial decisions.
ROI is commonly measured as net income divided by the original capital cost of the investment.
Detailed reports from each department within your company can more accurately identify its ROI, whether it's related to marketing or sales activities, like events, Pay-Per-Click (PPC) or software, for example.
ROI and reporting are essential to calculate the benefit an investor will receive in relation to their investment cost. Without an insight into how each department performs, identifying the areas that are more profitable and contribute directly to the growth of a business becomes increasingly difficult.
Detailed reports are key to steering strategic decision-making on where to invest your money.
The decision of investment is a strategic decision and an integral part of the general policy of the company.
If you're not receiving enough feedback on each area of your business, you will struggle to identify which areas are contributing to profit. Collecting clear data on how each area performs gives you a direct focus on what needs improvement and where time and money could be further invested.
The benefits of ROI relate to the support it provides investors and business owners to assess the prospect of an investment to avoid wasting time and money.
In-depth reports on which areas of the business provide a better ROI supports strategical decision-making when choosing where to invest more time and money for growth.
Evaluate the performance of projects on a regular basis. Acquiring the relevant data allows you to monitor each operation of your organisation to ensure everything is moving in the upward direction.
ROI is simple but effective. No more guessing which areas perform the best - use data to steer your decisions.
Implementing reporting to assess ROI can be tricky if you've not ventured down this route before. At ProsperoHub, we have experts who can optimise your reports through integrating HubSpot, a leading sales and marketing software with an impressive reporting dashboard.
We can support both you and your teams to understand how to measure ROI more effectively based on the results of various operations, and how to use this data to steer strategical decisions for the business.