Assess the overall profitability of the project

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Calculating ROI (ROMI) is useful if you need to:

evaluate the results of the project for a certain period;
identify profitable and unprofitable products;
make a decision on continuing to invest in the project.
Using ROI as one of the performance indicators is appropriate for most types of business where costs and income can be accurately calculated. From a manicurist and car windshield repair to metal tile production and radio communication systems sales.

WHEN ROI DOESN'T WORK
ROI may seem like a universal tool for assessing brazil email list efficiency, but it is not. There are situations when calculating the coefficient will not help to determine the real return on investment:

LONG TRANSACTION CYCLE

When selling premium products or expensive services, the transaction is extended over time and divided into many stages, which complicates an objective calculation of ROI. Long sales cycles are often typical for the B2B sphere.

If it takes weeks, months or even years to make a decision, then focusing on ROI is ineffective. It turns out that in some period, huge investments in marketing are accompanied by almost no transactions and the ROI indicator reflects unprofitability. And in another period, minimal investments are accompanied by significant income and ROI indicates profit. If you are guided by the indicator, then you need to curtail unprofitable marketing activities. But in fact, it was they who stimulated the receipt of profit, but with a time delay.