Definition of 'Return On Investment - ROI'
A performance measure used to evaluate the
efficiency of an investment or to compare the
efficiency of a number of different investments.
Courtesy of investopedia.com
To calculate ROI, the benefit (return) of an
investment is divided by the cost of the
investment; the result is expressed as a
percentage or a ratio. The return on investment
(Gain on Investment – Cost of Investment)
ROI = Cost of Investment
What is your leadership really asking for
when they talk about ROI and metrics?
It’s More than Measuring Quantity
It’s More Than Tracking Activity
Measuring Impact, Affect, Change
• Track what you do
• Observe affect; Observe donor behavior
• Measure results
• Apply the ROI formula
• Supplement with qualitative returns
Three Key Areas for DR&S ROI
• Lifetime Value
Know Your Value
What is your leadership really asking for when
they talk about ROI and metrics?
• Start Small
• Set aside Time at Weekly or Monthly Intervals
• Make it a Personal Priority
• Get Buy In and Feedback from Leadership
• Be Strategic!
• Lynne Wester
Follow me on Twitter @donorguru
• Colleen A. Brade, CFRE