Can ROI be measured in more than money?

Can ROI be measured in more than money?

Can ROI be measured in more than money?

Can ROI be measured in more than money?

What is ROI?

ROI stands for return on investment. Put simply, it refers to the amount of money you generate after making an investment in something. But can ROI be measured in more than money? 

How do you calculate ROI?

To calculate your return on investment, you divide the benefit of the investment (how much you profited) by its cost. The result is then usually expressed as a percentage or a ratio.

 

Of course, the most obvious way to measure your ROI is by looking at the financial figures. But there are other ways you could measure it as well, especially if you think outside the box.

What else does ROI tell you about your business?

How much time you’ll save.

 

Usually, when you save money on something, you’re saving time as well. Take a piece of office equipment, for example.

 

You have two options. Option one: invest in a cheaper piece of equipment, say a printer. Because it’s cheaper, it doesn’t optimise printing volume, quality, or speed. It also may only come with basic printing features. You also may have to hire maintenance for repairs if it breaks down.

 

More importantly, you may end up updating your printer more frequently if you’re going for the less expensive models. Time to wait for printing, maintenance, or replacing models is going to be pretty substantial, right?

 

Let’s take a look at option two: you invest in a more expensive printer. It has all the extra features, prints at large volumes, prints more quickly and prints to a higher quality. Not to mention, it lasts longer.

 

With option two, you get more copies in less time, you save time on maintenance, and you also save time on having to replace the outdated or faulty equipment.

 

If you’re looking for a time saver as well as a money saver, then it’s worth taking your ROI into account in that way. It can really benefit your business in the long run.

 

How you’ll be faring against your competitors.

 

You can also look at your ROI in terms of how it’s keeping you ahead of the game against your competitors.

 

Take your ROI on marketing strategy, for example. One way to start calculating your marketing ROI is to compare your efficiency and effectiveness with your competitors’ marketing strategies.

 

Look at how they market themselves on their website, social media, and any other marketing platforms. If they’re spending a lot of money on marketing, are they reaping the benefits?

 

If the answer is yes, then you can take a look at how you could get more ROI from your marketing. If the answer is no, then you’ll know what to avoid for your marketing strategy.

 

The more you learn about your competitors and their marketing efficiency, the easier it becomes to rise above them.

Want some more advice?

At In Business, we love helping fellow businesses and professionals make the most out of their business strategies. That’s why we love connecting, collaborating, and offering advice with one another.

 

No one can be an expert at everything, so why not join a group that’s full of experts in different fields? Get in touch with us to find out more about joining!