Measuring return on investment (ROI) for SaaS solutions in enterprise mobility is critical for businesses to determine the value of their software expenditures. This technique entails selecting relevant metrics and applying a transparent methodology to assess the advantages. Concentrating on key indicators and employing a systematic strategy may help businesses optimize profits and drive growth.
In this blog, we will look at the key metrics for software ROI calculation and offer a realistic approach for evaluating the financial effect of SaaS solutions in enterprise mobility. You will also learn practical ways to maximize your ROI.
Identifying Key Metrics for Software ROI Calculation
Cost Savings
Reduction in hardware and infrastructure expenses
No need to invest in expensive servers. Generally, your SaaS providers’ servers will host your SaaS applications so that you won’t need to purchase and maintain your physical infrastructure. One of your savings is the cost of electricity: no servers mean no energy to power them and cool them down. Moreover, not needing physical space to house this equipment eliminates additional costs.
Savings on maintenance and IT support
SaaS providers take care of all software updates, bug fixes, and technical support, which means you don’t need a big in-house IT team for these tasks. This saves you money on hiring IT staff and avoids the costs of managing and fixing the software internally. Plus, with fixed subscription fees, you can budget more effectively.
Productivity Gains
Improvement in employee efficiency
SaaS products are user-friendly, with features that make tasks faster and more accurate for employees. They streamline workflows, cutting down on time spent doing the same things over and over. This means employees can focus on more important tasks. Thus, everyone can get more done in less time, boosting overall productivity.
Enhanced collaboration and communication
Many SaaS solutions include features that facilitate better communication and collaboration among team members, such as real-time messaging, video conferencing, shared document editing, and project management tools. These features help teams work together more effectively, regardless of their physical location. Improved collaboration leads to faster decision-making, fewer misunderstandings, and a more cohesive work environment, all of which contribute to higher productivity and better outcomes.
Time Savings
Think of SaaS solutions as time-saving superheroes compared to traditional software. Unlike traditional software, which requires lengthy setups with complex installation and configuration steps, SaaS lets you dive right in after subscribing. This means no waiting around for installations or setups—you’re ready to go in no time.
Moreover, SaaS speeds up your business initiatives. With quick deployment, your organization can kick-start new projects and ideas without delay. This nimbleness allows you to seize market opportunities and respond swiftly to customer needs, giving you an advantage over competitors still stuck in setup mode.
Boost Revenue
SaaS tools are like secret weapons for supercharging your sales and service delivery. Take CRM SaaS, for instance. It helps your sales team wrangle leads more efficiently, closing more deals. In fact, many SaaS tools, such as unified endpoint management (UEM), simplify IT tasks, resulting in higher efficiency. In addition, research indicates[1] that businesses using SaaS for sales and customer service often see significant improvements in their revenue streams.
For example, the SaaS market in North America is leading with substantial enterprise adoption, driving better financial outcomes for businesses. Similarly, investing in sales intelligence platforms can turbocharge your sales team’s outreach efforts by reaching the right customers at the right buying stage.
Plus, many SaaS products come with mobile-friendly features, letting your team work from anywhere, anytime. This flexibility unlocks fresh revenue possibilities, like reaching customers through mobile platforms or empowering remote sales and service teams to thrive. By harnessing these mobile features, your business can tap into new markets and customer segments, potentially boosting your bottom line.
Methodology for Measuring Software ROI
Establishing Baseline Metrics
Current costs and productivity levels
Start by determining how much you spend and how productive your team is with your existing tools and processes. This includes all your current software, hardware, and related costs. Also, measure how efficiently your employees are working with these tools.
Existing revenue and customer satisfaction metrics
Determine how much revenue your business generates with your current setup and how satisfied your customers are. This can include sales figures, profit margins, and customer feedback or ratings. These metrics will help you understand your current performance before implementing the new SaaS solution.
Tracking Changes Post-Implementation
Monitoring cost reductions
After implementing the SaaS product, closely track your expenses to identify any reductions. This includes savings on hardware and infrastructure that you no longer need to purchase or maintain and decreased software updates and IT support costs since the SaaS provider handles these tasks. Document these savings to compare against your baseline costs.
Measuring productivity improvements
Observe how the new SaaS tool affects your team’s productivity. Measure specific improvements such as faster task completion times, increased output per employee, and enhanced workflow efficiency. To quantify these improvements, use metrics like the number of tasks completed, time taken for specific processes, and employee feedback.
Calculating time saved
Calculate the total amount of time saved due to the SaaS product. This includes the reduced time required for deployment and implementation compared to traditional software and ongoing time savings from automated processes and more accessible updates. Track time spent on these activities before and after SaaS implementation to quantify the difference.
Assessing revenue changes
Evaluate any changes in your revenue after adopting the SaaS solution. Look for increases in sales, improved service delivery efficiency, and the creation of new revenue streams enabled by the mobility features of the SaaS product. Measure sales growth, customer retention rates, and additional revenue from new market opportunities. Compare these revenue figures to your baseline metrics to determine the overall financial impact of the SaaS implementation.
Comparing Against Baseline
Analyzing differences in key metrics
Compare the data collected after implementing the SaaS product with your baseline metrics. Look at the costs, productivity, time savings, and revenue changes. Analyze these differences to understand the impact of the SaaS solution on your business operations.
Identifying direct and indirect benefits
Determine the direct benefits, cost reduction, earnings growth, and indirect advantages, such as enhancing employee morale, increasing consumer satisfaction, and improving decision-making. How are these results driving growth and productivity in the organization as a whole, not just based on financial measures?
How to Increase Return on Software Investment
Here are some tips to drive adoption and reduce SaaS waste in your organization, ultimately increasing return on software investment.
Create a Training Plan for New Software
Ensure your employees are well-trained on new applications before implementation. Proper training boosts technology adoption and prevents employees from reverting to old practices, saving on costly implementation failures.
Accurate Customer Profiling and Segmentation
B2B data provides detailed information about your prospective or current customers, the industry they belong to, the size of their company, their buying behavior, and the difficulties that they experience. This B2B data allows businesses to create precise customer profiles and segment the market perfectly. Since each customer segment has its unique needs and pains, solutions providers can vary their SaaS offerings to address these needs. This results in high adoption and customer happiness—key conditions for a positive ROI.
Provide On-Demand Support
Beyond initial training, invest in on-demand support tailored to employees’ roles. This includes in-app guidance, FAQs, and step-by-step tutorials to help employees use the software effectively without leaving the app.
Optimize IT Spending with SaaS Management
Use SaaS management platforms to track software usage, eliminate redundancies, and manage licenses effectively. This helps reduce unnecessary expenditures and optimizes IT costs.
Enhance User Experience
Ensure a smooth and intuitive user interface (UI/UX) to boost application acceptance. An appealing design and easy navigation encourage users to engage with the software, increasing its overall effectiveness.
Iterate and Improve
Continuously improve the application based on user feedback and usage patterns. Regular updates and A/B testing ensure the software remains relevant and useful, enhancing employee satisfaction and ROI.
Encourage Employee Participation
Highlight new software’s benefits and address employees’ concerns to motivate them to embrace it. Engagement is crucial, especially for those who are less comfortable with digital changes.
Optimize Performance
Optimizing images and eliminating redundant features will ensure your application runs quickly and efficiently. Speed is critical for user satisfaction and overall productivity.
Customize for Specific Domains
Tailor the software to meet the specific needs of different teams, avoiding feature overload that can confuse users. A focused approach enhances usability and relevance for each domain.
By following the above strategies, organizations can drive better adoption, reduce waste, and significantly increase the ROI of their SaaS investments.
Ensuring Success: Essentials of SaaS ROI Measurement in Enterprise Mobility
Measuring software ROI in enterprise mobility is crucial for several reasons. Firstly, it helps you understand the value and impact these products have on your business. By carefully tracking and analyzing costs, productivity, time savings, and revenue, you know how the SaaS solution contributes to your overall business performance.
Understanding Costs and Savings
Accurate ROI measurement begins with a thorough assessment of cost savings. This involves direct costs, such as reduced hardware and maintenance expenses, and indirect costs, like lower IT support needs. Understanding these savings is vital for determining whether the SaaS investment is financially beneficial.
Boosting Productivity
Making your team more productive is a big win. SaaS tools are great at smoothing out processes, automating tasks, and helping team members collaborate better. You can tell if the software is doing its job by seeing if your team gets things done quicker and easier.
- Save Time
Time is precious, and SaaS tools help you save a lot of it. They make setting up, updating, and everyday tasks faster and simpler. Keeping track of the time you save with these tools can show you big benefits, like finishing projects faster and getting new ideas out to market sooner.
- Make More Money
Seeing how your SaaS tool affects your revenue is a big part of getting value from it. It could mean making more sales, delivering better service, or finding new ways to make money with mobile features. Looking at changes in revenue helps you see the financial gains you’re getting from using the SaaS tool.
- Smart Decision-Making
Businesses can make better decisions about their tech investment when they know the ROI of your software. Which SaaS tools offer the planet for your pound allows you to decide where you should be investing in the future.
- Prove It’s Worth It
Getting people to support your software investment is vital to demonstrating a clear ROI. Establishing the fact that software is not just a cost but also an asset that enables you to achieve and support your organization’s objectives and strive. This information is critical to establishing reliable backing and financing for tech projects.
- Stay Ahead of the Game
In the world of business tech, using the latest tools effectively is a must. Measuring ROI helps you ensure your SaaS tools give you the edge you need to stay competitive.
- Use Them Right
Finally, software ROI calculations ensure that you maximize your SaaS use for business success as long as possible. It prompts you to continually assess how you utilize tools and adapt for the better.
With so much potential in SaaS and new possibilities emerging daily, measuring software ROI can help you grow smart, run your business better, and ensure you’re never left behind in a swiftly changing market. Investing in the right technology can benefit your business, and the only way to determine that is by looking at ROI.
For all your IT needs in terms of secure and efficient device or endpoint management, investing in a SaaS solution like Scalefusion can ensure optimum ROI. Contact our experts to know more or schedule a demo. Get a 14-day free trial today!
References:
1. Clockwise Software
