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HOW TO MEASURE YOUR RETURN ON INVESTMENT FROM SIGNS
WHAT IS RETURN ON INVESTMENT?
The return on investment or ROI of a project works out how much profit has been generated from a project compared to how much was spent. This is of vital importance with any business spend that is designed to grow profits. Otherwise spending may not lead to growth. Usually shown as a percentage, ROI is calculated with the below equation.
ROI = (PROFIT GENERATED-AMOUNT SPENT)/AMOUNT SPENT
So how do you get the numbers to calculate ROI? You need to be able to work out how much profit is being generated from your signage to know whether it is generating new customers. There are some ideas below on how you can keep a track of each.
Include an exclusive offer on your signage, when a customer takes up this offer you know they have seen your sign. Tell your customer’s to mention they have seen your sign, again, you will know they have seen it. Keep track of how many new customer’s redeem your exclusive offer or mention your sign. Then work out how much profit has been generated from these new customers.
This will be the total cost of your signs, including any maintenance and planning costs.
Plug the numbers into the equation to find your ROI percentage. By doing this for other projects as well such as social media activity or a new website, you can evaluate where you are best investing in your business.