Why measuring SaaS return on investment holistically is vital to truly understanding value and success
Your business uses SaaS solutions to improve efficiency and productivity, and consolidate costs – essentially you’re using sophisticated tools do more with less.
You’re not alone; in 2021 Gartner predicts that SaaS market revenues will reach $113bn, with a further 25% increase to $141bn the following year.
You invest in SaaS under the assumption it will deliver value in some form or another – usually financial.
Understanding a lack of ROI is of course easily done when technology fails to do what it’s meant to.
However, when it comes to measuring a positive ROI of an entire ecosystem, things can get a little more difficult.
Often, purely financial calculations do not demonstrate true value.
A more holistic approach is required.
Measuring ROI is not a one size fits all approach
Wouldn’t it be wonderful if we could simply say that a new platform drove an additional £500k uplift in pipeline or an additional £1m in new business opportunities?
In reality, true ROI depends on a variety of proof points – both qualitative and quantitative – to measure success e.g. cost consolidation, CRM attribution, reduced customer churn, NOS or productivity savings.
Customer acquisition cost (CAC) and customer lifetime value (LTV) are popular methods of ROI measurement, but what about cost consolidation, for example?
We recently helped a large top-tier bank save £1m by consolidating into Artesian. Or how about value comparison?
We had another customer comment that “Artesian costs less than my daily coffee but gives me more in return”, or one that added context to their Artesian investment by saying that one deal alone pays for Artesian for the entire year.
Likewise, what about soft costs or metrics?
The difference your SaaS solution delivers to your people – is it saving them time to do more value-added activities, or have they got specific examples where the data or intelligence the platform delivered opened the door to a new opportunity that may otherwise have been closed?
ROI is best determined by ALL the benefits that the technology provides, and…
ROI can be improved with training and support
We call this the Artesian ROI challenge.
With training, you can increase the value of SaaS investment – driving increased usage and engagement.
As stickiness increases, so too will your ROI.
Take BT for example.
By measuring the value of Artesian quantitatively through their CRM system as well as monitoring usage, BT invested in the training and support needed to get their people engaged, and made their sales leaders accountable for success.
Through this approach, they were able to raise their ROI from £641,000 to £19 million in just 5 years.
Ready to accept the ROI challenge?
Join us if you are responsible for Artesian adoption in your organisation. This session will showcase proven ways to measure and report on ROI, aligning Artesian metrics to internal indicators. Preview our new BETA reports, giving you more clarity over usage, while hearing our top tips for consistent adoption.
Click here to watch a recording of Interactive Stream 1 from the Artesian Connect 21 Virtual Summit.
Or alternatively if you are new to Artesian and want to book a meeting to run through our ROI calculator and to see what’s possible first-hand, then click here.