Strategy
ROI (Return on Investment)
Also known as: Return on Investment & Objectives and Key Results
Definition
ROI measures the return generated from an investment compared to its cost.
In practice
Used to evaluate the effectiveness and value of initiatives, projects, or campaigns.
The reality
ROI can be hard to measure accurately, especially for long-term or indirect benefits.
Also known as
Return on Investment & Objectives and Key Results
Plain English
What you get back compared to what you put in.
FAQ
Common questions
A few practical answers to the questions that usually come up around this term.
What is ROI?
ROI is the return generated from an investment relative to its cost.
How do you calculate ROI?
By dividing profit by cost and multiplying by 100.
Why is ROI important?
It helps assess whether investments are worthwhile.
What affects ROI?
Costs, revenue, and glossaryEfficiencyEfficiency measures how quickly and easily users can complete tasks once they are familiar with a system.Open glossary term of execution.
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