What does the input-output ratio mean? Win the education to share

Many friends asked what Taobao’s input-output ratio means when winning the championship? To put it simply, the output ratio is the investment in marketing and promotion, and all the profits obtained. In the best case, the input-output ratio is 2 to 1. Below we explain it in detail.

If the product income is 50%, the input-output ratio is 2, which is the bottom line. If the profit is less than 50%, it means a loss. Most of the Taobao Express trains are now losing money. If the big sellers win, they can keep losing money. If the small sellers win, they should stop as soon as possible. If the stock stops, it means making money, otherwise it will lose more deeply.

The formula calculation of input production is turnover/input consumption. For example, if you spend 10 yuan on Taobao Express today and sell it for 20 yuan, then the input-output ratio is actually ROI=²⁰⁄₁₀=2:1=2.

The input-output ratio refers to the proportion of the total industrial output value produced during the service life of all investment and operation of the project. It is applicable to the evaluation indicators of economic effects of high-tech projects, technological innovation projects and equipment upgrading projects. The lower the value, the better the economic effect.

The effect of applying the “input-output ratio” is to directly indicate the economics of the project and identify whether the project is economically feasible. The dynamic economic effect indicators have long been able to achieve this overall goal. Therefore, creating the functional relationship and arrangement and combination between the two is beneficial to select the input-output ratio indicator more appropriately and accurately.

In the dynamic economic effect index system, the index that can more immediately reflect the efficiency of capital use is the internal rate of return. The following inference is that when the project operating period nc (years), operating service life ng (years), the annual average project investment k in the operating period and the average annual growth value in the operating period are known, the input-output ratio Roi and the internal rate of return IRR Functional relationship. Set the cash flow diagram of the annual average project investment k and the annual average growth value in as follows.

There are various marketing and promotion indicators. The business department, marketing department, service center, and financial department of large e-commerce companies have different marketing and promotion index management systems. If you blindly follow the trend and select several indicators to calculate the marketing and promotion ROI, it is not only very easy to bias It is difficult to move the position, just in terms of the amount of tasks.

After struggling in theory and practice, everyone chose to use the CNPV formula to measure customer value to consider the long-term input-output ratio of marketing activities, and take customer lifetime value as an important evaluation index for marketing strategies.

When many decision-making bodies and leaders use the “input-output ratio”, they interpret its meaning as “the ratio of project input assets to output rate assets, that is, how much corporate assets can be exploded by one unit of assets invested in the project”.

I don’t know if you know it or not. Winning Education can say that “input-output ratio” is a static data indicator that reflects the economic effect of project investment. Therefore, in our specific operation process, it is the data that we need to pay great attention to.