ROI ManagementPerformance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.
A Higher Financial Altitude
A high ROI means the investment’s gains favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. In purely economic terms, it is one way of relating profits to capital invested. Return on investment is a performance measure used by businesses to identify the efficiency of an investment or number of different investments.
At Upturn our main focus is to get the Clients the ROI in one of the most used profitability ratios in terms of flexibility. We also focus on Social media statistics ROI which pinpoints the effectiveness of social media campaigns – for example how many clicks or likes are generated for a unit of effort. Similarly, marketing statistics ROI tries to identify the return attributable to advertising or marketing campaigns. When using ROI to compare investments, it’s important to use the same inputs to get an accurate comparison.
Return on Investment Strategy
Specify your Business Measures and Drivers that supports
Decide on your Business Measures and goals and look at the outcomes you are trying to achieve in terms of financial indicators – profit, sales, costs, assets, etc.
Identifying your driver that supports the Business by providing you the information for market research, statistical analysis, experience, or case studies of other companies.
Prioritize Business Driver impact on Business Measures
Prioritize and estimate the impact of each driver on the Business Measures. The most important outcome is that you define your view as to the relative weighting of each Business Driver on the Business Measures.
Create a set of Strategic ROI Measures
Create a set of key measures for each driver so that you can directly and easily correlate changes in the driver with changes in the Business Measures.
Measure Strategic Return on Investment
Tactical ROI results from each Tactical Approach should then be correlated against Business Driver changes. We can exactly determine which Business Drivers impact on Business Measures which in turns impact on Business Drivers.
Optimize Tactical Return on Investment
Depending on the size and complexity of your business, the elements in each of these steps can be expanded or contracted to suit your needs. The important thing to note is that you should strive to maximize not just Tactical outcomes but also Strategic ones.