ROI Methodology® is nowadays used by businesses more often to measure the value of projects, programs, and business initiatives. In the past decades, we have also noticed that ROI is used in a variety of non-capital expenditures like human resources, technology, marketing, training, and more. ROI in reality is a single metric and a complete process of creating a perfect strategy for your business and also set objectives accordingly.
However, many Myths are surrounding ROI that makes it harder for businesses to believe in the concept and succeed.
Here is a proper evaluation of the misconceptions, let’s go through them:MYTH 1: We guarantee a positive ROI
REALITY: We help organizations turn negative ROI into positive resultsROI can be both positive and negative: The idea of the ROI Methodology is to have proper planning for your projects. ROI can be both negative and positive, depending upon your practical approach and the business measure that you have used. Programs and projects set through proper initial analysis and objectives can lead to a positive impact. Resulting in improving productivity, quality, and/or efficiency of the projects. It can also save time and reduce project costs.
In case you have a negative ROI, then also you can detect the loopholes easily and take positive measures in the future.Therefore, whether you have a positive or negative ROI it will always benefit your business.MYTH 2: ROI is too complex to measure.REALITY: The process of measuring ROI can be broken into simple steps
The ROI Methodology is broken down into simple steps. Moreover, the ROI V model and the ROI Phillips model can help you simplify your approach. Following the process, you can easily identify your project needs, set objectives, and create a proper project or program evaluation. The Phillips model offers organizations an effective four-step strategy for evaluating your program or project. ROI model works by focusing on the following areas:Data collectionFixing ObjectivesIsolating the impactsAccounting for intangible benefitsCalculating the return on investment (ROI)
Therefore, the approach of measuring your programs or projects is simple and easy if the methodology is properly understood.MYTH 3: ROI calculation should begin only after the program has been delivered/completed
REALITY: ROI is a complete and balanced approach to measure your programROI Methodology includes techniques on needs assessment, reviewing objectives or plan analysis, and finally evaluation of the project. The project is developed to achieve the objectives at each level. Therefore, ROI Methodology is a balanced approach and helps businesses to plan, and optimize the strategies according to the needs. It also helps in evaluating the results and calculating the Return On Investment of the particular project.
MYTH 4: ROI focuses only on Monetary ReturnsREALITY: Positive ROI is the result of the practices you included in your project
Increasing the budget for the projects without a proper plan will not bring you benefits. Rather you have to work on your plans properly. For the success of your program you have to focus on what makes the campaigns run, target audience, good CTA, focusing on USP, and so on. Question yourself as to why you want to program, what are the opportunities the program can bring to your business? Based on the analysis, set a budget and proper objectives. All these practices if executed properly will get you what you want, not just money. The strategies will also help you with your future projects.
The above-mentioned clarification of the myths surrounding ROI can help you create positive strategies for your business programs, projects, and initiatives. For more details related to ROI visit our website https://roiinstitute-india.com.