What it means in plain language
ROI, i.e. Return On Investment, is an indicator showing the ratio of the profit achieved through an investment to the cost of this investment.
Where it genuinely helps
ROI relates profit to total investment and should include implementation, labour, maintenance and unintended effects.
What to decide before acting
We set the time horizon, baseline and costs and benefits that cannot be assigned to one channel.
How to tell whether it works
We update the calculation with actual results, separating one-off investment, recurring cost and risk.
