26 July 2023

ROI

Return on Investment (ROI) is a metric that measures the profit you make from your investments and the efficiency of several investments to determine which is the most efficient.

ROI is calculated by subtracting the cost of the investment from the revenue generated by the investment and dividing that by the investment cost. The resulting figure represents the percentage return on the investment.

A positive ROI indicates the investment has generated a profit, while a negative ROI indicates a loss. eCommerce businesses use ROI to assess their marketing efforts’ effectiveness and make data-driven decisions about future investments.

Written by Segmentify

26 July 2023

Related Terms

First-Party Data

First-party data is the data or information a company directly collects from its users or customers. It is collected through audience engagement, which can happen on the company website, app, social m...

Data Silos

Data silos refer to isolated management systems that operate independently without the ability to integrate with other systems. In the eCommerce context, these silos can originate from diverse sources...

CSAT

Customer Satisfaction Score (CSAT) is a metric used to measure how satisfied customers are with a product, service or their interaction with a business. CSAT is usually measured through surveys, which...

CRM

CRM is a software platform that assists businesses in managing their interactions and relationships with both potential and current customers. A CRM system may include: CRM aims to improve customer sa...

Book a Free Demo

ROI

Related Terms

First-Party Data

Data Silos

CSAT

CRM

Try it out on your own for free today