How to Measure ROI on Your SaaS in 90 Days

Why Measure ROI?

A SaaS subscription is an investment. Without measuring returns, you cannot justify the cost or optimize usage. Here is a simple framework to measure ROI in 90 days.

The Three ROI Metrics

1. Time Saved

#### How to Measure

• Track hours spent on administrative tasks before and after implementation
• Use a simple timesheet: log 5 minutes at end of each day on admin tasks
• Compare weekly averages

#### Target

• 30 days: 20% reduction in admin time
• 60 days: 40% reduction in admin time
• 90 days: 50% reduction in admin time

2. Revenue Leakage Closed

#### How to Measure

• Track pending payments before and after implementation
• Monitor fee collection rates (collected / total invoiced)
• Calculate average days to payment

#### Target

• 30 days: Fee collection rate improves by 10%
• 60 days: Average payment time reduces by 5 days
• 90 days: Revenue leakage drops below 2%

3. Error Reduction

#### How to Measure

• Count data entry errors per week (wrong amounts, duplicate entries, missing records)
• Track customer complaints related to billing or scheduling
• Monitor staff corrections needed

#### Target

• 30 days: Errors reduce by 30%
• 60 days: Errors reduce by 60%
• 90 days: Errors reduce by 80%

90-Day Measurement Plan

Days 1-30: Baseline

Week 1: Establish baseline metrics

• [ ] Count total admin hours per week
• [ ] Calculate current fee collection rate
• [ ] Count data entry errors
• [ ] Document current pain points

Week 2-4: Implement and track

• [ ] Set up 1Grow with core workflows
• [ ] Begin tracking metrics weekly
• [ ] Note any immediate improvements

Days 31-60: Optimization

Week 5-6: Expand usage

• [ ] Add more team members to the platform
• [ ] Automate one additional workflow
• [ ] Compare metrics to baseline

Week 7-8: Refine processes

• [ ] Address any training gaps
• [ ] Optimize workflow configurations
• [ ] Document process improvements

Days 61-90: Measurement

Week 9-10: Final measurement

• [ ] Complete final metric calculations
• [ ] Calculate ROI using the formula below
• [ ] Document lessons learned

Week 11-12: Reporting

• [ ] Create ROI report for stakeholders
• [ ] Plan next 90-day goals
• [ ] Identify further optimization opportunities

ROI Calculation Formula

``` ROI = (Value of Benefits - Cost of Software) / Cost of Software * 100

Example:

• Time saved: 15 hours/week * Rs 500/hour = Rs 75,000/month
• Revenue recovered: Rs 50,000/month (from reduced leakage)
• Error reduction: Rs 20,000/month (from fewer corrections)
• Total value: Rs 145,000/month
• Software cost: Rs 2,499/month
• ROI = (145,000 - 2,499) / 2,499 * 100 = 5,702%

```

ROI Tracking Template

| Metric | Baseline | 30 Days | 60 Days | 90 Days | |--------|----------|---------|---------|--------| | Admin hours/week | | | | | | Fee collection rate | | | | | | Errors per week | | | | | | Revenue leakage % | | | | | | Staff satisfaction | | | | |

Tips for Accurate Measurement

Be consistent: Measure at the same time each week

Use the same method: Don't change how you count mid-measurement

Include soft benefits: Staff satisfaction, customer feedback

Compare apples to apples: Use the same time periods

Document everything: Keep notes on what changed and why