Why Focusing On ROI Could Be Your #1 Mistake

The most frequently asked question in advertising and marketing is: What’s the ROI?ROI, which stands for return on investment, is what the corporate finance world describes as “the amount, expressed as a percentage, that is earned on a company’s total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid”.If that’s a bit of a mouthful for you, basically ROI is how much you make relative to your investment.But there’s a problem with focusing on what your ROI is. It becomes a tough question to answer, especially when you’re trying to justify it over time.There is no ROI when you send a survey or ask your client a question so you can help them.There is no ROI in sending a free solution to solve your client’s problems.There is no ROI in maintaining high-end client support for your email list.There is definitely no ROI in making it a point to reply every message you receive.…or at least, the “ROI” of these actions is not something you can directly calculate and probably very hard to measure.

via Why Focusing On ROI Could Be Your #1 Mistake.

Advertisements

About Bob Warfield

Here's my bio: http://www.smoothspan.com/management.html
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s