No business, except PSUs, is run without the aim to turn a profit. Return on Investment (ROI) is a financial metric which businesses use to evaluate the viability of an investment. ROI measures the amount of return on an investment relative to its cost. ROI tools are methods or software that help businesses measure whether an investment is worth the money spent. They are used to compare the cost of something, such as a new system, campaign, or project, with the benefits it brings, such as higher revenue, cost savings, better efficiency, or reduced risk.

Some ROI tools are simple, like spreadsheets and online calculators, like the one by QKS Group, while others are more advanced and can measure things like payback period, future returns, and different business scenarios. In simple terms, ROI tools help companies understand what they are getting back from the money they invest. ROI is also used for sales pitches.

ROI-based selling is a sales approach in which the seller focuses on showing the customer the financial value of buying a product or service. Instead of only talking about features, the seller explains how the offering can increase revenue, reduce costs, save time, lower risk, or improve efficiency, and then links those benefits to a clear return on investment.

In addition, ROI can also be used as a measure to gauge performance by showing whether the money spent on a project, campaign, product, or business activity is producing worthwhile results. A high ROI usually means the investment is performing well because it is generating strong returns compared with its cost. Low or negative ROI suggests the opposite. It can also check whether the money spent on a Customer Relationship Management led to better sales, efficiency, customer retention, or cost savings.

Businesses use ROI to judge the success of things like marketing campaigns, sales efforts, software purchases, training programs, or new business initiatives. It helps managers compare different investments, decide where to spend more money, and identify which activities are creating the most value. In simple terms, ROI works as a performance indicator because it connects spending directly to results.

Speaking of sales, what kind of ROI is considered good, especially from the sales angle? There is no single “good” ROI from a sales angle, because it depends on margin, deal size, and sales cycle. But here are some rough estimates:

• 0–10% ROI: usually weak
• 10–20% ROI: acceptable
• 20%+ ROI: generally good
• 50%+ ROI: very strong

In sales, teams also often judge ROI by how fast the investment pays back and whether it drives profitable revenue, not just top-line sales.