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ROI (Return on Investment)

ROI measures the profitability of an investment as a percentage of the original investment. For marketing, ROI compares revenue or profit generated against marketing costs. Positive ROI indicates marketing spending generates more value than it costs.

How This Applies to Home Care Marketing

Marketing ROI for home care must account for client lifetime value. A $5,000 monthly marketing budget generating 5 clients worth $40,000 each in lifetime value represents $200,000 return on $5,000 investment—exceptional ROI often invisible in monthly analysis.

Track ROI by channel to understand which investments perform best. Include all costs (staff time, agency fees, ad spend, tools) and measure against actual revenue from acquired clients. Allow sufficient time for the full client lifecycle to calculate accurate ROI.

Key Takeaway

Calculate marketing ROI using client lifetime value and full cost accounting. Home care’s recurring revenue model often produces excellent ROI that isn’t apparent in short-term analysis of monthly marketing spend.

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