{"id":316,"date":"2016-09-02T15:00:49","date_gmt":"2016-09-02T14:00:49","guid":{"rendered":"https:\/\/www.feverbee.com\/roi\/?p=316"},"modified":"2023-05-03T12:37:58","modified_gmt":"2023-05-03T12:37:58","slug":"calculating-the-roi-of-community","status":"publish","type":"post","link":"https:\/\/www.feverbee.com\/roi\/calculating-the-roi-of-community\/","title":{"rendered":"Calculating the ROI Of Community"},"content":{"rendered":"<section class=\"content standard\"><div><\/p>\n<p><aside class=\"\"><\/p>\n<h1>15<\/h1>\n<h2>Calculating the ROI Of Community<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7\" src=\"\/wp-content\/uploads\/sites\/2\/2016\/09\/sponsored-by-sap.png\" alt=\"Sponsored by SAP\" width=\"113\" height=\"65\" \/><\/p>\n<p><\/aside><\/p>\n<p><article class=\"\"><\/p>\n<h3>Now, we\u2019re inching closer to the holy grail of community \u2013 the mythical ROI.<\/h3>\n<p>Once we have the return and costs, the ROI is really just one additional step away. We simply divide the profit by the costs to determine the return on investment.<\/p>\n<p><a href=\"\/wp-content\/uploads\/sites\/2\/Screenshot-2016-08-04-23.23.23.png\"><img loading=\"lazy\" decoding=\"async\" class=\"screenshot alignnone wp-image-543 size-full\" src=\"\/wp-content\/uploads\/sites\/2\/Screenshot-2016-08-04-23.23.23.png\" alt=\"screenshot-2016-08-04-23-23-23\" width=\"1027\" height=\"336\" \/><\/a><\/p>\n<p>For example, in the image above, the return on investment is 27.85% in the first year and 27.57% over seven years.<\/p>\n<p><div class=\"boxout\"><\/p>\n<p>This highlights the problem with using the total ROI. The total ROI might show a 27.57% ROI, but per year the community is now generating a 62% ROI.<\/p>\n<p>Hence, the decision to allocate resources should be made on the previous year\u2019s ROI, not the total ROI since the organization created the community.<\/p>\n<p>Be careful when communicating ROI not to fixate upon the total ROI but the ROI per year. As we will see next, how we communicate value is as important as how we calculate value.<\/p>\n<p><\/div><\/p>\n<p><\/article><\/p>\n<p><\/div><\/section>\n<section class=\"summary\"><div><article><h2>Summary<\/h2><\/p>\n<ol>\n<li>The return is the sum of all the additional revenue generated or costs saved through any measured above.<\/li>\n<li>The profit is the return less the cost of investment.<\/li>\n<li>The ROI is the profit divided by the cost of investment.<\/li>\n<li>The return, profit, and return on investment are simple to calculate when you have collected all the data.<\/li>\n<\/ol>\n<p><\/article><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-316","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO Pro 5.0.3 - aioseo.com -->\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Richard Millington\"\/>\n\t<link rel=\"canonical\" href=\"https:\/\/www.feverbee.com\/roi\/calculating-the-roi-of-community\/\" \/>\n\t\t<meta name=\"generator\" content=\"All in One SEO Pro (AIOSEO) 5.0.3\" \/>\n\t\t<meta property=\"og:locale\" content=\"en_US\" \/>\n\t\t<meta property=\"og:site_name\" content=\"roi -\" \/>\n\t\t<meta property=\"og:type\" 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