« Back to Home

How to Measure the ROI of Your Customers

Posted on

How to Measure the ROI of Your Customers

ROI is one of the most important ways that you can show a customer that you are adding value for them. The trouble for some companies is that they have a difficult time seamlessly porting customer processes to a model that allows them to show the customer exactly how much money and time that they are saving by going to a new process.

Here are some tips on measuring the ROI of your customers when you work with them online.

Measure the process correctly

ROI isn't really that hard to show. You are merely comparing what you have been doing with what you plan to do. When you have a customer that is trying out a new product or service that has a new process built into that provides ROI, one key thing that you can do is to ensure that you have built your model correctly. In other words, map and measure both the old process and the new process completely so that you can compare them and be confident that the results that you are showing the customer are accurate.

Get buy-in from your clients

If you plan to make changes that automate a portion of your client's workday in the form of a feature, their management might be excited to save time and money. The workers may not be as excited because a portion of their job may go away until it is replaced by some other activity. You therefore want to try and ensure that as you propose the changes in a new release, you allow those affected by them to understand how it benefits them. When you do this, you erase any slow-downs that might throw off the measurement process that you put into place.

Use best practices

There are actually a few ways to arrive at ROI when you use a formula. It is even possible to create your own formula for ROI. On the other hand, your customers can often expect that you will have the best formula in the world on tap for them when you start the measurement process. You can therefore often rely upon world standards that represent best practices. The EC has a formula that is public that has been published that is a pretty good example of a simple way to calculate ROI for products or services.

Whether you are focused on using best practices, getting support from your clients, or ensuring that you are measuring processes correctly, when you start providing ROI statistics for your clients, it should expand your opportunities with their firms.