ROI is a measure of the profit or loss generated from an investment relative to the amount of money invested.

Return on Investment (ROI) is a measure of the profitability of a product or service. It is calculated by dividing the net profit generated by the product or service by the total cost of producing and delivering it. The higher the ROI, the more profitable the product or service is. Product Managers use ROI to evaluate their products and services, as well as to compare them to competitors’ offerings. ROI can also be used to determine how much money should be invested in a particular product or service, and whether it is worth continuing to invest in it. ROI can also be used to identify areas where improvements can be made in order to increase profitability.

1. Increased Sales: Calculating the return on investment of a marketing campaign by comparing the total sales generated to the cost of the campaign. 2. Cost Savings: Calculating the return on investment of a new technology by comparing the cost savings generated to the cost of implementing it. 3. Improved Efficiency: Calculating the return on investment of a new process by comparing the time saved to the cost of implementing it. 4. Increased Profits: Calculating the return on investment of a new product by comparing its profits to its development costs.