ROI (Return on Investment) is a performance measure used to evaluate the efficiency of an investment. It measures the amount of return on an investment relative to its cost. The formula is: ROI = (Gain from Investment - Cost of Investment) / Cost of Investment × 100.

How do you calculate marketing ROI?

Marketing ROI is calculated by taking the revenue generated from marketing activities, subtracting the marketing costs, and dividing by the marketing costs. For example, if you spent $1,000 on marketing and generated $5,000 in revenue, your ROI would be 400%.

What is a good ROI percentage?

A good ROI depends on your industry and business model. Generally, an ROI above 100% means you're making more than you're spending. For marketing, ratios of 5:1 (500% ROI) are considered strong, while 10:1 is exceptional.

How can analytics improve my ROI?

Better analytics helps improve ROI by providing insights into customer behavior, identifying high-performing channels, optimizing conversion rates, reducing wasted ad spend, and enabling data-driven decision making. Studies show analytics improvements typically increase conversion rates by 15-25%.

What is payback period?

Payback period is the time it takes to recover the initial investment. For example, if you invest $1,000 and gain $250 per month, your payback period is 4 months. Shorter payback periods are generally better as you recover your investment faster.

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Your Current Metrics

Monthly Revenue$50,000

$0$1,000,000

Conversion Rate2.5%

0%20%

Average Order Value$100

$0$1000

Monthly Traffic10,000

01,000,000

Current Analytics Cost$150/mo

$0/mo$5000/mo

New Analytics Cost$99/mo

$0/mo$5000/mo

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