Marketing departments often measure the success of a campaign on their Return on Investment (ROI). The calculation of ROI measures the profitability in which profits are expressed as a percentage of investment.
Use the calculation formula below to determine your ROI.
ROI = (Income/Cost) * 100
Use the calculation formula below to determine your ROI.
ROI = (Income/Cost) * 100
Indeed ROI is an important metric for gauging the profitability of a business. In the world of e-commerce, particularly online retail stores, merchants often use COS (cost of sales), and conversion rate to determine their ROI.
Here’s the formula to calculate COS% & conversion% for online stores:
COS(%)= {Cost/Revenue}*100
conversion(%)= {No. of sales/No. of clicks}*100
When you say income, shouldn’t we clarify that and say profit. That would be the true ROI.
There is a large difference between “income” and profit.
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