A Refresher on Marketing ROI

Harvard Business

Marketing ROI analysis can help answer those questions. What is Marketing ROI, and How Do Companies Use It? Marketing ROI is exactly what it sounds like: a way of measuring the return on investment from the amount a company spends on marketing. Marketing ROI is a straightforward return-on-investment calculation. In its simplest form, it looks like this: The goal, as with any ROI calculation, is to end up with a positive number, and ideally as high a number as possible.

ROI 30

Case Math

Tom Spencer

Net Present Value: The NPV of an investment is the present value of the series of expected future cash flows generated by the investment minus the cost of the initial investment. Perpetuity: A perpetuity is a constant stream of identical cash flows with no end.

A Refresher on Payback Method

Harvard Business

There are a variety of ways to calculate a return on investment (ROI) — net present value , internal rate of return , breakeven — but the simplest is payback period. Payback is by far the most common ROI method used to express the return you’re getting on an investment.

Does Your Brand Inspire Customer Devotion?

Joellyn Sargent

The accelerated revenue that results from shorter sales cycles improves cash flow and increases profits, allowing funds to be reinvested for greater return on capital. This allows more efficient investments in demand generation and creates better ROI.

Death by 1,000 Subscriptions

Joellyn Sargent

Simply bill the credit card on file and cash flows in. It’s easy to budget, especially for small businesses on a cash accounting model. What’s the ROI? I just cancelled two membership services. Big news, huh? Not really. The move will save me about $160 month, not quite $2000 a year. That’s a significant savings, but it won’t make or break my business. What if I had 10 times that number of subscription services?

Business Valuation Lessons From ESOPs

Martinka Consulting

In the Discounted Future Cash Flow method profits are projected (same as the first issue) and discounted back to a present value. A well-run company rated a 5 out of six (a 20% ROI) is now an 8.33 (same rating percentage but now a 12% ROI). I’ve been working with a client company on the implementation of an ESOP (Employee Stock Ownership Plan).

ROI 40