What is ROI?
ROI relates the net result of an investment to its cost, usually as a percentage. Its calculation must clarify which revenues, costs, and period are included; it is not equivalent to gross revenue.
ROI is a metric that tells you how much money a company has lost or gained from investments (such as paid advertising, new tools, training, etc.).
This way, you can see which investments are worthwhile and how to improve those that are already working for better performance. Since it is one of the elements that allows you to understand and develop certain aspects to learn about, ROI helps achieve better results in processes.
This metric is important because it helps measure the contribution of specific initiatives to business results. Similarly, based on the return on investment, it is possible to plan objectives based on tangible results and understand if it is worth investing in certain channels.
