roi-analysis

Vocabulary Word

Definition

'ROI-analysis' is looking at how well an investment did. 'ROI' means 'Return on Investment'. Basically, you compare the money you put into something (like a business or a project) with how much you got back to see if it was a good decision.

Examples in Different Contexts

In marketing analytics, 'ROI analysis' (Return on Investment) measures the effectiveness of marketing campaigns by comparing the gain from an investment to its cost. A marketing analyst might illustrate, 'Our ROI analysis showed that the digital advertising campaign yielded a higher return compared to traditional media spending.'

Practice Scenarios

Tech

Scenario:

The new software system comes with a significant upfront cost. However, it promises to streamline our processes and reduce manual work.

Response:

To validate their promise, we should complete an ROI-analysis on the new software system. Then we can be sure if the benefits outweigh the costs.

Business

Scenario:

After reviewing the business plan, I've some concerns about projected revenues. It's essential to ensure our financial resources are allocated wisely.

Response:

I agree, reallocating funds carefully is crucial. Perhaps conducting an ROI-analysis can help us make a more informed decision.