The basic concepts of AutoROICalc start with thinking about whether our actions make sense and progress.
The purpose of business
What is the purpose of business? Yes, the profit in various ways. We can call it money, satisfaction, happiness, whatever. Sometimes (almost in each case) an effort is required to achieve the profit. So, this is the other side in the matter of money again, time, whatever. Here we can find the “golden” measure, called ROI.
ROI – What is the Return on Investment?
With ROI we try to measure the amount of return on a particular investment relative to the investment´s cost. Sounds like this is related to the finance and accounting segment only? Of course not. We can apply the ROI to any particular activity. Online marketing activities could be a good example. At a particular time period, we invest a certain amount of money in order to achieve profit. So, what will be the return on our investment?
To make it as clear as possible, as we can see, there are two fundamental items: cost and profit. We have a net profit after subtracting costs from the profit. The ROI gives us a percentage expression which is calculated by dividing this net profit (or loss) by its initial cost.
The Perfect Source of Truth
When do we know if we are successful? The answer is a positive ROI percentage or if the net profit is greater than zero. Based on this piece of information we can decide if we want or can invest more to achieve more net profit with what we have.
What’s the trick?
The catch is that we do require this piece of data to be current (to this moment preferably). And this is the part that can be painful, as it forces us to deal with difficult spreadsheets and tedious calculations. One piece of information and the means to obtain it can be difficult to come by.
Then here comes the AutoROICalc
The AutoROICalc can do it all for you. With a little effort and correct setup, you can get up-to-date ROI reports of your business activities regularly. Just imagine you open the mailbox at the start of your workday, and everything will be clear to make your next decisions. Of course, it is possible to view the up-to-date report at any time.
It´s important to be aware that all the business activities are not suitable to be measured with ROI. That´s why you can use AutoROICalc to track and report any kind of activity, for example, website traffic, website events, the number of customers that visited the business location, the number of customers that have made a purchase, etc.
How it works?
There are three steps, or sections: Records, Reports, and Dashboards.
Records
The Record speaks for itself. If there is some activity and we want to report it, first we must note and record it. This can be done manually, or better, automatically.
Reports
The Report does all the painful data mining to bring up a confident view for your decision-making. You build your Reports from scratch based on the nature of your data – the Records.
Dashboards
The Dashboard is simply a view of the Reports that are related to each other. Always real-time and up-to-date.