Return on Investment (ROI) is used by companies to understand the business value of investments and today it's one of the main drivers behind spending money on technology.

ROI is a family of financial measurements known as Net Present Value (NPV), Internal Rate of Return (IRR) and Payback and are all as important as each other.

NPV, IRR and Payback are the primary measures that define the business value of any investment and therefore is key within the board decision making process.

The ROI family represents Value (NPV), Rate (IRR) and Time (Payback). Value; how much money they will make on the investment. Rate; the yearly percentage returned on the funds used on the investment. Time; when they will get their initial investment back.

The objective of ROI in the sales process is to quantify and value the benefits rather than minimise the cost.

Clients need ROI based on their own specific circumstances. Industry standard claims for ROI in other countries or clients are irrelevant.

Next: Why use ROI? >>