If you don’t know what negative ROI is, in this text. You will understand everything about this indicator and how to deal with it!. To understand what negative ROI means. The first step is to understand what ROI is, that is, “return on investment”, a term that you will hear many times when talking about marketing . Sri-Lanka Phone Number List The ROI is a return rate that identifies the organization that your company gets through in a certain period, calculated as a percentage.

These Investments Include Everything that Is Done with Future

such as new marketing campaigns or training for the sales team. The ROI calculation will help your company to identify which are the strategies that give results and can approximate your goals, as well as understand the performance of the marketing campaigns and the effectiveness of each of the communication channels. How to calculate ROI? What are the causes of a negative ROI? How to avoid negative ROI? How to calculate ROI?

The easiest way to calculate ROI is ROI = ((INCOME – COST) / COST) * 100To perform the calculation, you only have to identify the value of the income and the cost of the strategy to complete the formula above, so it will be possible to evaluate the performance. From this calculation, it is possible to evaluate the return of each investment that you analyze. The final result can vary a lot since it can be a negative or positive percentage. If the result is positive, it means that your investment is bringing a return, that is, profit for your company. Let’s look at an example, if the revenue from a customer acquisition strategy is $ 100 and the cost is $ 20, the ROI has a result of 400%.

From That, It Is Possible to Deduce that Every Dollar You Invest

will allow you to earn 4 dollars. In the case of the negative ROI result, the percentage is below zero and that means that in this investment the company is losing money.What are the causes of a negative ROI?  But, there are some reasons why the ROI of your company or strategy may be negative. High costOne of the causes of negative ROI is the need for a very high investment for a project to be viable .

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