Return On Investment (ROI)

Return on investment (ROI) measures profit generated from investments. It equals the net financial gain realized from an initiative divided by the total spend required. ROI helps assess and compare the expected payoff across initiatives like marketing campaigns, sales technology, trainings, tradeshows, hiring, and more.

Higher ROI indicates greater operating efficiency and payback from investments. Sales leaders should track ROI across programs to guide optimal resource allocation and identify poor performers. ROI also conveys monetary impact and success when communicating program results. However, longer term value may exceed immediate ROI.