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Glossary
Glossary

ROI

ROI relates the net result of an investment to the costs incurred. For a programme, specify the selected result, the total cost, and the period. Using the additional margin rather than the total revenue of members helps avoid a misleading interpretation of profitability.

Coup de Poing editorial team2 min
Measure performance

A concrete example

Fictitious example: €45,000 additional margin and €30,000 full cost give (45,000 − 30,000) / 30,000 = 50% ROI.

A point to consider

Using all member revenue often overestimates the gain. Check incrementality, margin, and costs before calculating.

Also calculate the break-even point

With a stable contribution margin rate, the additional revenue needed to break even corresponds to the total cost divided by this rate. In the example above, €30,000 in costs with a 30% margin require €100,000 in additional revenue. This benchmark is used to discuss the project's feasibility; it does not demonstrate that this volume will actually be generated.

Questions to ask your team

  • Do the costs and gains cover the same period?
  • Is the result still acceptable with a more conservative effect assumption?

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Glossary 2 min

Incrementality

Incrementality corresponds to the proportion of a result attributable to an action compared to what would have occurred without it. It is a matter of comparison and methodology. Since the most engaged customers may already be the most active, their performance alone is not enough to prove an additional effect.

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