How To Calculate Market Research ROI?

Determining the ROI of market research can be difficult because market research is not directly linked to profit. However, one option is to estimate the cost risk of making a poor business decision, estimate how much market research will reduce that risk, and calculate the cost savings. Another is to determine the value of the business activity, multiply by the degree of confidence in that activity that market research will provide, and divide by the cost of the research. Finally, future market research ROIs can be determined by analyzing the past benefits of previous research programs. Investment returns in market research are indirect, but tend to be high.