company that cannot measure
Posted: Mon Apr 21, 2025 5:44 am
“Peter Drucker says that a its results is not capable of making good decisions, and this is what ROI aims to help with, in strategic decision-making, based on cost-benefit.”
Just to give an example – ROI in e-commerce
Just to illustrate, your e-commerce store, this netherlands mobile database season, invested in a Google Ads campaign worth R$2,000. In this campaign, users made purchases and you earned R$7,000.
Therefore:
Calculating ROI is simple and there are two ways :
F1: ROI = (total return – investment) / investment
F2: ROI = [(total return – investment) / investment] x 100
Formula 1:
(7000 – 2000) / 2000
5000 / 2000 = 2.5
According to Formula 1, its ROI was 2.5.
Formula 2:
[(7000 – 2000) / 2000] x 100
(5000 / 2000) x 100
2.5 x 100 = 250%
According to Formula 2, its ROI was 250%.
In this example, the company undoubtedly tripled the value of the investment, that is, the final value shows the financial return achieved by the initial investment made in e-commerce.
Of course, this example is simple, just to understand how to calculate. However, when put into practice, you must pay attention to all the investments that were made in a given action or campaign.
You can also send email marketing/SMS marketing, social media campaigns, just add up all the investments and include them in the formulas.
Therefore, it is very important to measure ROI to know whether your business is making or losing money. If you ignore this metric, you run the risk of not achieving your marketing goals.
Just to give an example – ROI in e-commerce
Just to illustrate, your e-commerce store, this netherlands mobile database season, invested in a Google Ads campaign worth R$2,000. In this campaign, users made purchases and you earned R$7,000.
Therefore:
Calculating ROI is simple and there are two ways :
F1: ROI = (total return – investment) / investment
F2: ROI = [(total return – investment) / investment] x 100
Formula 1:
(7000 – 2000) / 2000
5000 / 2000 = 2.5
According to Formula 1, its ROI was 2.5.
Formula 2:
[(7000 – 2000) / 2000] x 100
(5000 / 2000) x 100
2.5 x 100 = 250%
According to Formula 2, its ROI was 250%.
In this example, the company undoubtedly tripled the value of the investment, that is, the final value shows the financial return achieved by the initial investment made in e-commerce.
Of course, this example is simple, just to understand how to calculate. However, when put into practice, you must pay attention to all the investments that were made in a given action or campaign.
You can also send email marketing/SMS marketing, social media campaigns, just add up all the investments and include them in the formulas.
Therefore, it is very important to measure ROI to know whether your business is making or losing money. If you ignore this metric, you run the risk of not achieving your marketing goals.