Who this applies to#
- Use ROI only when the gain and investment cost belong to the same decision and measurement window
What Return on investment requires#
- Define the attribution, time window, and included cost before you compare campaign results
Shopify
Shopify keeps attributed sales and costs separate from broader store revenue; compare the same report each time, so define which report you are comparing
What this does not require#
- ROI is not revenue, gross profit, or return on ad spend; none can replace the calculation
Common mistakes#
- Dividing revenue by cost and calling it ROI
- Comparing windows with different attribution rules
Return on investment checklist#
- Start with the investment cost
- Define attributable gain
- Subtract cost
- Divide net gain by cost