What is ROI? How do you measure the ROI for a sales training program?
The Sales training program on Return-On-Investment by Ramez Helou, founder of The Academy For Sales and Excellence is very simple, powerful and effective for the sales proffessionals who purposefully hardworking for fetching the exellence in sales.
Promotions are a necessary expense of running your business and increasing brand awareness and sales.
During your sales campaign, regularly collect data on the promotion. For example, if it is an online campaign, record data on the number of daily impressions and clicks the campaign delivers. If it’s a print campaign, get data on the circulation and distribution of the campaign. Before your sales promotion runs, target your advertising vehicles based on a target audience profile and the sales goals you wish to accomplish.
Determine results of your sales promotion as they relate to your business. For sales promotions, the most obvious measure of return is revenue generated from the promotion. Review your sales numbers to determine the amount of sales that resulted from your promotion. In order to get a more accurate view of how many sales were a direct result of the campaign, use trackable sales methods in your ad. For example, use unique website landing pages or phone numbers in the ads so you can directly track the number of sales that result from these channels. Once you know the amount of sales revenue that results from your promotion, determine your gross profits from those sales by subtracting the cost of the goods sold from your revenue. For example, if you sell a shirt for $10, but it costs you $3 to buy it, when you sell 10 shirts, your revenue is $100, but your profit is $70.
Calculate the total cost to run the sales promotion. Track these expenses from the onset of the project to get an accurate account of expenditures. Costs could include the sales promotion purchase price, freelance or design fees, and any employee time or resources put into the complete sales promotion process.
Calculate your return on investment for the campaign by subtracting your sales promotion total cost from your gross profits, dividing that number by your sales promotion cost and then multiplying that number by 100 to get a percentage. For example, if your promotion yielded $1,000 in profit but cost $500, your ROI would be 100 percent. An ROI of 100 percent means the promotion led to a profit that was twice the cost. It’s important to note that this number is a profit in relation to the total expenses of the campaign. The “return” in the ROI equation is in direct proportion to the amount spent, or the investment
In this video, you people can watch how to capture your ROI for Sales Training Program in a simple and effective way.
Watch below and share with us your Success Stories!