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A Refresher on Marketing ROI

Harvard Business Review

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.

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The Most Common Mistake People Make In Calculating ROI

Harvard Business Review

But before anyone writes a check, you need to calculate the return on investment (ROI) by comparing the expected benefits with the costs. Analyzing ROI isn’t always as simple as it sounds and there’s one mistake that many managers make: confusing cash and profit. Apples to apples, and all that.

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6 Digital Strategies, and Why Some Work Better than Others

Harvard Business Review

Based on our recent worldwide survey of 2,000 incumbent companies across all major industries and countries, we estimate that the average return on incumbent digital initiatives is below 10% — barely above the cost of capital. Insight Center. Crossing the Digital Divide. Sponsored by DXC Technology.

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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. That’s why good managers put so much focus on measuring and managing return on investment (ROI) as a basic operational practice. Don’t Get Trapped in Your P&L. Focus on Problems, Not Ideas.

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An HBR Refresher on Breakeven Quantity

Harvard Business Review

“It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. How do you calculate it?

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

Marketing is in the midst of an ROI revolution. ’” To reverse this perception and to get greater bang for marketing’s buck, we believe that CMOs must become true collaborators with CFOs and adopt a marketing ROI approach that’s driven by analytics. The opportunity is enormous. Get more for the money.

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