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FinanceROI

ROI (Return on Investment)

Quick answer

The metric measuring the net gain of an investment relative to its cost: (benefit - cost) / cost.

Key takeaways

  • Benefits: hours saved, chargebacks avoided, capital freed, sales recovered
  • Costs: implementation + operation over the analysed period
  • ROI = (benefits - costs) / costs

What ROI is

Return on Investment (ROI) expresses the return of an investment: ROI = (net benefit - investment cost) / investment cost. A 3x ROI means the investment generated three times its value.

Why it matters to the board

ROI is the common language of investment decisions. For operational software, the benefit comes from reducing manual work, errors, dead stock and retail penalties.

How it is calculated for an operational project

  • Benefits: hours saved, chargebacks avoided, capital freed, sales recovered
  • Costs: implementation + operation over the analysed period
  • ROI = (benefits - costs) / costs

How CRMconnect helps

CRMconnect measures real benefits (automated orders, chargebacks avoided, dead stock reduced) and offers dedicated ROI calculators, so the decision is made on concrete figures, not promises.

Real-world example

A distributor saved €14,200/month (manual work + chargebacks avoided) at a cost of €216/month + setup, reaching an ROI above 7x in the first year.

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Frequently asked

Difference between ROI and payback?+

Payback tells how long until you recover your investment; ROI tells how much you gain beyond what you invested, over a given period.

How do I estimate ROI before implementing?+

Starting from measurable current costs (manual hours, chargebacks, dead stock) and the realistic benefit of automation. CRMconnect calculators help with this.

Where CRMconnect fits

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