What is the ROI; It is the acronym of Return on Investment (ROI). More… It arises from the following fraction: ROI = (revenue of an investment – Cost of investment) / Cost of investmentAlways be positive and greater than one.
An indicator that positively affect the ROI, is the life cycle of a customer (CLV).
DigitalUp interests us the whole life cycle of a client includes 6 stages:
- Prospective client: Potential customers from research or from lists
- New customers: Customers who purchase for first time.
- Active customers: Customers who purchase products-services
- Repeated customers: Customers who want to retain their
- Occasional customers: Occasional customers: Seasonal clients, customers not repeated
- Former customers: Customers that have stopped cooperating with us
Also at DigitalUp we inspect ROAS: Return on Ad Spead, which shows how much the performance of each operation of the business is, such as new customer acquisition cost.