Once you have calculated the above, you can quantify the short- and long-term benefits, giving you a concrete indication of how close you are to your goals.
The information that your boss, decision makers, and business partners want to know most is, in essence, "how much will it cost and how much will it profit?" Even if you can secure a large budget for promotion, your company will not make a profit if it does not get closer to the goal.
If you don't have specific figures for your uk telegram phone number list company's costs, you can provide examples of similar costs at other companies to provide evidence of ROI.
Know the net return on your investment
ROI can be used not only for upcoming plans and initiatives, but also to check the balance between investment and profit in ongoing projects.
The key point is that ROI measures profits, not sales. Even if a product sells well and revenues increase, if the product's cost price is high or the development period is significantly longer and requires large labor costs, the profits may not be sufficient.
ROI is calculated by subtracting costs, selling and administrative expenses, etc. from sales, so you can see only the pure investment effect. Checking ROI is essential not only for profits commensurate with the investment amount, but also for pursuing returns that are greater than the investment amount.
Ability to compare businesses of different scales
When you are faced with a decision such as, "Our company has multiple businesses running, and we need to decide which one we should invest in more in the future," the ROI of each business is one of the factors to consider when choosing which business to focus on.