Calculating your return on investment (ROI) is the ultimate measure of performance. An ROI analysis looks at the “back end” results of your campaign and tells you how much money, or profit, you are actually making. Businesses use ROI to measure company success, and you can use it to measure the results of a campaign, an offer, a list, new creative ideas, or any aspect of your marketing, product, or offer. ROI takes into account how much money you are making and the percent return and is a mini-P&L of campaign performance.
We use ROI analysis to test products, promotions, offers, and lists to see which ones generate the most sales, have the highest costs, and give you the highest profit margin. Making good decisions based on your test results is the roadmap to achieving your objectives. In some cases the results will be clear, and you will know which offer is better. In other cases you may get higher sales, but a lower profit margin. You’ll need to decide which result will help you meet your goals and stay on budget.
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