ROI – Methods to Determine ROIBack to Glossary
ROI stands for return on investment. The return on investment measures or compares the benefit of an investment to what you would have without making that investment. ROI is expressed as a percentage. ROI includes your profits from your business, which is the amount of money you have left after expenses. One way to calculate your return on investment is to divide your gain from the investment by the cost of the investment. The higher the percentage is, the better the return.
Click to read 5 ways to increase your ROI with thank you pages.
Marketers’ Methods to Determine ROI
Businesses use ROI to determine their success, or if a certain business is worth pursuing. There are several different tools and methods you can use to determine your return on investment.
Internet marketers use Google analytics to track their marketing statistics. These analytics monitor different aspects of your website, such as visitor count, keywords, click through rate, expenses and more. You can set up custom goals and track anything helpful with determining your return on investment.
One good expense to track is the amount of money you’ve spent on advertisements. This will help you determine if the advertisements are worth the investment if you can set your analytics up in such a way that you know how much profit is generated by them.
Check out our blog for more information on conversion optimization