What is Return on Investment (ROI)?

Return on Investment (ROI) measures the profitability of an investment. In B2B marketing and sales, it helps you see if your efforts are paying off. ROI is usually expressed as a percentage.

To calculate ROI, subtract the cost of an investment from its gain, then divide by the cost. For example, if you spend $1000 on an ad campaign that brings in $1500, your ROI is 50%.

Tracking ROI helps you make smart decisions about where to spend your resources. It shows which marketing channels or sales strategies are most effective. This can guide your budget allocation and strategy.

In B2B, calculating ROI can be complex due to long sales cycles and multiple touchpoints. It's important to consider both short-term and long-term returns. Many companies use CRM and analytics tools to help track and calculate ROI accurately.