The Return on Investment (ROI) is an essential metric that businesses use to measure the efficiency and profitability of an investment. It provides a tangible, measurable value to assess the financial returns and gains from an investment.

In the case of Fit Quiz, the ROI metric shows the overall impact Fit Quiz has on your store's sales and returns.

The traditional formula for calculating ROI is:

This formula expresses the ROI ratio as a percentage.
In the context of Fit Quiz the formula expands to:

Here's what each term means:

Additional Sales – calculated by subtracting the sales conversion of shoppers who didn't use Fit Quiz from those who did. This difference shows the impact of Fit Quiz on overall sales and is used as the basis to calculate the "Additional Sales".

Return Savings – calculated by subtracting the return rate of items purchased without the Fit Quiz from those with it. This difference indicates the amount of returns prevented by the Fit Quiz. Based on market benchmark, we assume that cost associated with the return (shipping, packaging, warehouse expenses etc.) is about 15% of item's price and use that to calculate the "Return Savings".

Fit Quiz Costs – this represents the cost of using Fit Quiz for a given period. For pay-as-you-go subscriptions the costs will include both fixed and usage fees, and for annual subscriptions the costs will be calculated pro rata

To understand the monetary value, simply divide the ROI metric by 100%. For example, an ROI of 1,200% means that you gain $12 in additional sales and prevented returns for every $1 spent on the Fit Quiz.

The answer varies, but here are some general benchmarks: