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Term: ROI

Definition of the term "ROI"

ROI or Return on Investment is used to measure how a certain investment is doing. It is the ratio between net profit and the initial investment cost. In simple words it is used to understand how much profit, a certain invested capital is making. This is a marketing metric that should be monitored on every campaign. Email marketing is a channel that has very high ROI. Therefore, understanding ROI for email marketing campaigns can help businesses make better decisions when it comes to allocating resources. By taking into account factors such as conversion rate and average order value, businesses can calculate ROI to get a clear picture of how email marketing is performing. Additionally, ROI can also be used to compare the performance of different marketing channels, making it an essential metric for any business serious about marketing.

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