What is ROI?
ROI is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
ROI, or return on investment, measures the gain from an investment relative to its cost, expressed as a percentage. In sales it justifies purchases by showing buyers the value they will get versus what they pay, and internally it evaluates the payoff of tools, campaigns, and headcount. A clear ROI case is central to persuading economic buyers.
Key takeaways
- Gain from an investment relative to its cost, as a percentage.
- Justifies purchases to economic buyers.
- Also evaluates internal spend on tools and campaigns.
- A clear ROI case moves budget-holders to act.
Why it matters
Economic buyers approve spending based on return, not features. A credible ROI case, tied to the buyer's own metrics, is often what turns interest into an approved purchase.
How Ardovo handles it
Ardovo's deep deal object captures the metrics and value drivers behind a deal's ROI case, and Rook can assemble an ROI-focused proposal tied to the buyer's numbers, so the value is concrete, not hand-waved.
Frequently asked questions
How is ROI calculated?
Subtract the cost of an investment from the gain it produced, divide by the cost, and multiply by 100. A tool costing 10,000 dollars that returns 40,000 dollars in value has a 300 percent ROI.
Why is ROI important in selling?
Because economic buyers justify purchases by expected return. Framing your solution around the ROI the buyer will achieve, in their own metrics, makes the value tangible and the decision easier to approve.