We calculate the ROI for the products

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ROI shows the profit received from the project as a percentage. Let's consider the possible calculation results and their meaning:

> 100% — investments have paid off and the project is making a profit.
= 100% – the investment paid off completely, that is, it returned double.
< 100% – investments were only partially recouped.
Knowing the result, you can determine what percentage of return each invested monetary unit provided.

EXAMPLE : of a cosmetics manufacturer - face cream for dry skin and face cream for oily skin.

In the first case, the ROI was 100%, for every ruble invested there was a return of 2 rubles. That is, the investment in promoting the cream for dry skin paid off.

The ROI of the cream for oily skin is 30%. This means that brazil email list the investment was only recouped by a third. Accordingly, the second product is unprofitable.


OLGA REUTOVA

Lecturer of the course "Internet Marketer" , Marketing Director at "Site Factory"

"An unprofitable payback indicator does not mean that the project should be immediately closed. But it is a sign that it is necessary to identify the reasons for the unprofitability, check other performance indicators, optimize the project partially or completely, and find a solution that will promote payback growth.

At the same time, there is no single ROI value that can be called good. For different types of businesses, the indicators will differ. But in any case, a good ROI should be above 100%, which indicates a full return on investment."