How to Measure AR ROI—A Practical Guide Using the AREA Calculator

The AREA’s comprehensive research on AR ROI best practices reveals that organizations pioneering AR technology deployments and realizing superior ROI exhibit five common practices. This guide walks you through the practical application of these insights.

Step 1: Define Your Use Case and Gather Data

Start by clarifying your AR use case—maintenance, training, remote support, or something else. The AREA case study of an AR-enabled Maintenance Repair Operations (MRO) application shows how one healthcare services company achieved a 42% annual rate of return.

Gather baseline data through time and motion studies. In the AREA case study, the company conducted detailed studies with five maintenance technicians, revealing an average time savings of 58 minutes per repair task—a 45% improvement.

Step 2: Map Out Costs and Benefits

The AREA ROI Calculator helps you break down:

Direct Costs:
Software licenses and annual maintenance fees

• Hardware (AR devices, network infrastructure, servers)
• Labor costs (deployment, training, ongoing management)
• Consulting and professional servicesDirect Benefits:
• Productivity improvements (reduced task time, fewer errors)
• Cost reductions (eliminated hardware, software, services)
• Reduced inventory carrying costs
• Lower audit and accounting costsIndirect Benefits:
• Increased profits from improved customer satisfaction
• Reduced customer churn
• Enhanced safety and compliance
• The AREA research emphasizes the importance of translating all benefits into corresponding cash flows. For example, productivity improvements should be calculated using fully loaded annual costs (wages plus benefits) for all affected employees.

Step 3: Account for Digital Readiness

One of the most significant challenges in AR ROI analysis is accounting for “digital readiness” costs. Converting paper-based operations to digital formats can consume significant resources. AREA best practices suggest:

• Developing a formal or informal corporate digitization strategy
• Accounting for digital readiness costs separately from project-based ROI
• Digitizing resources in manageable chunks
• Leveraging existing digital assets whenever possible

Step 4: Analyze and Communicate Results

The AREA ROI Calculator provides clear outputs: payback period, net present value, and ROI percentage. In the case study example, the MRO deployment delivered:

• 42% annual rate of return
• €129,000 annual average net benefit
• Payback period of 3 years and 47 days

Pro Tips from AREA Best Practice:

• Conduct time and motion studies for accurate baseline data
• Involve end users throughout the process to ensure buy-in
• Use pilot projects to validate assumptions and refine your model
• Document both tangible and intangible benefits for a holistic view
• Assign a “Champion” to follow through on implementation¹⁰

For a visual walkthrough, check out the AREA’s Introduction to ROI Calculator and Use Cases video available on their website.