Tag Archives: return

Returns

Definition:
Percentage of returned products. The cause of the measured returns are worth measuring: are they damaged or broken or is the customer simply not satisfied with it?

Calculation:
Returned products / Total sold products

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability; Customer Satisfaction

Return on Marketing Investment (ROMI)

Definition:
Return on Marketing Investment (ROMI) can help you in optimizing your earings from marketing activities. Improving ROMI says your marketing effectiveness has grown, resulting in higher revenues and market share.

Calculation:
(Earnings / marketing investment) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Return on Investment

Definition:
The revenues (before interest, taxes and dividends) earned on invested capital. Calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid.

Calculation:
(revenues / investment) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability