OIS maximizes sales' and marketing's total ROI

OIS’s sales and marketing ROI is mathematically optimal, given the assumptions explicit in the OIS model. The prescriptive math programming technique employed by OIS, mixed integer and linear programming (MILP), uniquely identifies the following three planning elements that maximize profit (MaxP):

  1. the specific sales and marketing expenditures (S)
  2. the associated forecast those expenditures drive and
  3. the costs required to make and fulfill the associated forecast (Cost)

The ROI of the sales and marketing expenditures, S, is defined as MaxP/S. This is maximized because:

  1. If reducing S would increase MaxP, the MILP program will choose to do so.
  2. Similarly, if increasing S would increase MaxP, the MILP will choose to do so.

Thus MaxP/S is as good as it can possibly be; i.e., it is maximized, there is no better ROI possible. See Wiley article for more details.

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