What is ROI & KPI?

Question

What is ROI & KPI?

Accepted Answer

ROI stands for Return on Investment and KPI stands for Key Performance Indicator.

ROI is a measure of the profitability of an investment. It is calculated by dividing the net profit by the initial investment and expressing it as a percentage.
KPIs are specific metrics used to evaluate the success of a particular activity or campaign. They help in measuring the performance and effectiveness of marketing efforts.
Examples of KPIs in digital marketing include website traffic, conversion rates, click-through rates, and social media engagement.
ROI helps in determining the financial success of a marketing campaign, while KPIs provide insights into the overall performance and effectiveness of marketing strategies.

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