ROI (Return On Investment)

The ROI (Return On Investment) is the economic value generated by carrying out various marketingBusiness-to-business (B2B), also known as B-to-B, is a form of transaction between businesses, such ... More activities. With this data we can measure the return on an investment.

It measures the profitability of the total capital invested in the company, taking into account both the capital brought in as risk capital and the capital in the form of borrowed debt.

WHY IS ROI SO IMPORTANT? 🤔

One of the most important things to consider when implementing an Inbound Marketing strategy is to verify its results and measure its profitability. ROI is very useful to evaluate this profitability, because it allows us to know how much each euro invested in a campaign has generated in sales.

Its calculation is fundamental for making decisions on future investments. We will have the necessary information to assess which projects are most profitable and, therefore, establish the path to follow in the future.

HOW DO YOU CALCULATE IT? ⏱️

The following formula is used to calculate it:

ROI = (Profit – Investment) / Investment

Let’s see it with an example. If we dedicate 500 euros of resources to the realization of an Inbound Marketing course and we obtain, after its completion, 1,500 euros of benefits, the return on investment will be 200%. That is, for every euro invested in the course, we get a return on investment of 2 euros (profit).

These data are essential to evaluate a project. If the return on investment is positive, it means that the project is profitable. Otherwise, if the result is negative, the investment is not profitable and we would lose money. The calculation of the ROI is crucial for making the decision on future investments.

HOW DO YOU OPTIMIZE ROI? 📈

Most companies whose goal is to improve their presence and results through online actions, focus on increasing qualified and segmented leads (lead scoring), converting these businessBusiness-to-business (B2B), also known as B-to-B, is a form of transaction between businesses, such ... More opportunities and building loyalty. The main indicator in these cases that should be enhanced is the ROI.

SEO is the main source of lead generationLead generation is exactly what it sounds like: how your company generates leads or how you attract ... More within Inbound Marketing methodology. To increase or optimize ROI in these cases, it will be necessary to promote the corporate blog, organic traffic and content amplification through social channels.

Applying strategies such as Content Marketing contributes to ROI optimization, solves problems that have been left behind by the decline in business confidence, towards the effects of advertising in traditional media such as radio, television or print media. According to the latest report published by the company Hubspot:

• The blog as a content marketing strategy is 13 times more likely to generate a positive ROI.
• The participation through email marketing ranges from 1.5% to 4.79% depending on the industry.
• It is impossible to measure 100% ROI in traditional media.
• Content marketing will generate $300 billion by 2019.