ROI

ROI stands for Return on Investment: a way to compare the benefit of an action or spend against its cost. In simple form: (gain − cost) ÷ cost, often shown as a percentage.

Businesses use ROI for ads, websites, tools, hires, and AI subscriptions. A related idea is KPI — the metric you track; ROI is specifically about value versus spend. Good ROI thinking includes the full cost (time, fees, training), not just the sticker price, and a clear definition of “gain” (revenue, savings, or risk avoided).

A real-life example of ROI

You spend $500/month on an AI writing tool that frees 20 hours of staff time. If that time is worth more than $500 in payroll or opportunity, the ROI is positive. If nobody uses the tool, the ROI is negative no matter how impressive the demo looked.

ROI isn’t always instant or purely financial — brand trust and retention matter too — but if you can’t name the return, you’re guessing. Pair ROI with analytics so claims stay grounded in data.