Calculating the ROI of implementing SaaS

Business strategy can’t be born and risen without a clear understanding of the investment value made and the return of the investment and their correlation.  This metric is ROI (return-on-investment). For calculating it we should consider the Internal Rate of Return (IRR) , the time it will take to implement the technology , thus the Payback Period and Net Present Value (NPV).

Why we need to calculate the return on investment of implementing SaaS?

Implementing new technology in the company is a matter of pros and cons, as all investments made to incorporate the technology should be returnable, even more, the return should be achieved in a measurable time. So the business must calculate the ROI of software, which will allow you to evaluate your technology decisions, moreover, it will help you:

To have a full understanding of the ROI of your all investments over time,

To be clear with your stakeholders and inverters or customers about your business expanses

To develop your company marketing and product management strategy 

To change of target point from the final value created to the investments made

As we figure it out, in the SaaS world, ROI must become an ongoing calculation not derived from the product development process! 

How ROI can vary for different SaaS sales?

To understand the whole importance of the process you should understand that ROI is the most important metric for measuring the number of purchases of your SaaS product. As you can see the popularity of SaaS platforms is increasing day by day changing platforms that need code generating to ready-on ones. Simple solutions like random shape generators make the design processes twice even three times easier, leaving the designer just a few easy steps. This type of product is becoming a root point in understanding how a good correlation of ROI and sales performance can be reached in SaaS.  

Where else the ROI can be a bullet point of technological implementation?

SaaS development doesn’t stop, it continues the development and winning of new areas, and new technological solutions appear, like Blockchain-as-a-Service (BaaS) are getting a turnover for Startups and new businesses. With the development of it both the businesses and vendors started to move their focus from blockchain implementation to their own needs, investments, and other bullet points. This can bring to fastening the processes of blockchain solutions thus greatly affecting quicker ROI.

The bitcoin market is quickly spreading its wings conquering new blockchain worlds, and if in not far past the only giant in the field was Bitcoin, now the cryptocurrency trade passed to a new era by appearing of new blockchain services like Ethereum with the high-performance area. So the blockchain technology is now living its best time thus raising the cost and return of investments. So calculating the whole ROI process has no difficulty. First what you need to do is to know how it performs and how it “makes money”. Like in SaaS blockchain platforms also need a careful investigation of market niche and implementation of a solid technical roadmap. Just have in mind that the implementation of a blockchain platform will give you a good opportunity to calculate your ROI.

To sum up, let’s remember that ROI can differ for different types of products, buyer profiles, and so on. The most important thing is to remember to calculate possible risks, speed-to-market that will help you to trigger your tremendous start.

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