بسم الله الرحمن الرحيم
Bismillahir Rahmanir Raheem..
Hello, readers :)
Today's post will be about Return On Investment (ROI).
ROI is a measurement used to evaluate or compare the efficiency of one more more investments. ROI allows you to know how much profit you get in relation to capital invested.
The formula to find ROI is by dividing Gain from Investment minus Cost of Investment with the Cost of Investment, then multiply it by 100% since ROI is represented in percentage.
The company I will utilize to for today's discussion is Pizza Hut.
Pizza Hut is a restaurant that offers different styles of pizza, found in Kansas, 1958. Besides pizza, it also offers side dishes like salad, pasta, breadsticks, garlic bread, etc. It is noted in 2012 that more than 5,000 Pizza Hut restaurants were located in 94 different countries and territories.
Being such a large company, Pizza Hut surely wants to increase their sales. In this era, the main tool of marketing is social media. Pizza Hut has been starting to use social media (making a website) since 2007.
Let's back to ROI.
Pizza Hut launched an app for iPhone, iPad, Android, and Windows that allows customers to customize the pizza on their own and order directly from the app.
According to Mobile Marketer , Pizza Hut achieved over $1 Million of sales within first three months since the launching of the app. 50% of overall orders came from the app.
The Gain from Investment is divided into two, which are tangible and intangible.
Tangible gain is the profit that can be measured or quantified. Pizza Hut's tangible gain is obviously the profits they get in form of money.
Intangible gain is the other way around. The benefit is difficult to be measured or seen. One of the benefits of it may be brand awareness. Because of this innovative idea, people may be more aware and attracted towards Pizza Hut. The customers may want to try and experience the fun of creating their own Pizza and order it directly from the App.
As for the bases of ROI, this case suits more to "Increased Connections between need and Knowledge".
It affects the decision making capabilities of the customers. Compared to ordering directly at the restaurant, using the app can give more time to customers to select which foods to order. They even can create their own pizza.
It also stimulates innovation. By making their own pizza, customer will have a fun experience. Pizza Hut will also be the first innovative pizza restaurant in providing this service.
