The Alphabet Soup of Common Business Terms – Demystified!

Confused by the alphabet soup of business metrics you hear around the office? Here are some of the many business metrics you may hear, defined: KPI: this stands for Key Performance Indicator. A KPI is the outcome of a business objective, i.e. what you measure an objective against. ROI: Return on Investment, or ROI, is a measure of the business value you get out of a particular investment. For example, if you were to invest $500 on a website redesign, and your new website brought in 3x the revenue, after you subtract the costs you could say that the ROI of the website redesign was 200%, or an additional $1000. ROAS: Return on Ad Spend. Similar to ROI, this measures the business value you get out of an advertising investment.
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