If we go back for a moment to the e-commerce example we gave earlier, the ROI will be calculated like this:
By subtracting your campaign investment from your turnover, and dividing the result by the invested capital, you will have a positive ROI of 173%.
This means that for every euro invested, your campaign will generate a profit of 1.73 euros.
As you might imagine, this is an extremely simplified calculation, and does not take into account several factors, such as:
It is not always easy to attribute a sale to a uae email list specific channel.
Many products and services are purchased more than once.
Some promotional activities do not have an immediate ROI.
Nonetheless, it is essential to keep track of your ROI and use it as a guiding star to navigate the endless sea of marketing strategies.
Calculating Annualized ROI
Annualized ROI: How to Calculate It? Annualized ROI offers a solution to compensate for one of the main parameters that ROI does not take into account, namely the duration of the investment.
But how do you calculate the annualized ROI? Basically, it's a matter of adding 1 to the ROI you calculated earlier, raising the result to the number of years the investment was active, subtracting 1 from the total, and multiplying by 100.
Your marketing campaigns will likely involve more than one channel
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