What is ROI
ROI is the abbreviation used for Return on Investment. Return on Investment refers to the returns achieved by a particular project of the company for the investment made. The efficiency of a particular project or an advertisement campaign can be judged with the help of return on investment. There are multiple benefits offered to the business, by regularly monitoring the return on investment of a particular project: –
- The return on investment helps the firm to identify the most efficient project taken up by the company.
- The positive aspects of the well performing project can be identified and used for future projects. This is made possible with the return on investment.
- Many times mistakes go unaware. Calculating the return on investment on the projects helps the firm to identify the loop holes of the project with the help of ROI. This also helps the firm to escape from heavy losses.
- The use of ROI also helps in exploiting the situation to earn more profits from the business. This is possible as ROI exposes the capacity of the project to earn profits.
These are a few benefits that are achieved by the firm, by regularly monitoring the Return on investment. There are different techniques available in the market to improve the ROI of a particular project or campaign. Some of the common methods used for improving ROI are mentioned below: –
Direct linking – This is one of the most popular methods used by firm to improve the ROI. The message regarding the company through direct mails or postcards can be sent the customers. This in turn encourages the customers to access your website and hence buy the products or services. Thus, direct linking helps in improving the web traffic and the business of the firm.
Search engine optimization for the websites – This is a ROI improvement technique which is used to improve the ROI on websites. When a website is search engine optimized, your website would be listed on the top list of the searches made by the search engine. This is based upon the keywords used in the content of the website. By doing the search engine optimization, your website gains better traffic and thus help in achieving better business for better ROI.
Advertising in different media – A marketing campaign or a project is successful by creating the right awareness among the people. Using advertising techniques like promotions, media advertising the awareness of the project or the campaign can be increased to gain more publicity. This in turn helps the business to gain more return on investment.Hence, return on investment should be measured and improved on a regular basis.