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Constructing the Business Case and Measuring the Return on Investment for e-Signature Technology

Revenue Growth

Do you lose customers during the time is takes to send application packages out in the mail or by courier?  Does your business require new sales and service channels to remain competitive and respond to the expectations of a changing customer demographic?  Consider the following revenue-based returns in your ROI calculation:
  • The expected revenue growth from wider operating windows (i.e. from 9-5 to 24X7).
  • The expected revenue to be realized through the addition of new channels (online, e-service) and through improved cross-selling abilities.
  • The additional revenue to be generated through automation of existing channels.
  • The increase in customer retention through introduction of Web-based transaction processing.

Cost Savings/Avoidance


Are manual, paper based processes resulting in soaring costs per transaction in your business?  Are your customer acquisition costs too high?  Are you paying a fortune for physical storage of documentation?  Consider the following cost savings and avoided costs when calculating your ROI:
  • The reduction in cost per transaction for the following: 
      1. Document printing & preparation (in-house or outsourced)
      2. Distribution via mail or courier
      3. Quality assurance
      4. Scanning & indexing
      5. Physical storage
  • The anticipated reduction in customer acquisition costs through fewer staff touch points, more efficient and automated processes and the introduction of Internet-based self service transaction processing methods.
  • The ability to leverage more value from pre-existing investments in content management, records management, e-forms and Web portals.

Competitiveness

Are your competitors easier to do business with than you?  Are your customers seeking more convenient alternatives to acquiring your product or service?  If you are striving for more efficient processes, shorter transaction processing and approval cycle times, and seeking to introduce new e-based business channels to improve your competitive advantage consider including the following estimations in your ROI analysis:
  • The anticipated growth in percentage of market share due to more efficient processes, shorter transaction processing and approval cycle times, and the introduction of new e-based business channels.  
  • The larger customer base that you will attract through use of electronic acquisition methods.
  • The number of customers who will switch from a competitor to your business due to more efficient and accessible services.

Compliance/Risk


Is missing, misfiled or incomplete documentation resulting in non-compliance fines, penalties or unfavorable settlements for your organization? Are your transactions time-sensitive and/or subject to service level agreements?  Are you confident in your ability to demonstrate to your auditors the exact process followed in a given transaction?  If the above scenarios resonate, consider including the following cost avoidance estimates in the ROI portion of your business case:
  • The auditing costs, time saved, and fines avoided through the availability of comprehensive audit trails and transaction evidence.
  • The penalty costs avoided by ensuring service level agreements are honored.
  • The legal cost savings and avoided settlement costs to be realized through the presentation of irrefutable transaction evidence in court or to avoid going to court in the first place.

Efficiency


What is your average transaction time using your current paper-based process?   Is staff spending valuable time following up on outstanding packages or documents?  What cost does your company incur when there is a delay in the process?   Time is money in today’s competitive climate.  If your goal is to improve efficiency and productivity consider including the following estimates in your ROI analysis:
  • The number of administration staff to be redeployed to revenue generating work through the elimination of manual document production and processing.
  • The percentage of productivity improvement to be realized through shorter transaction processing times, faster approval cycles, more reliable routing, reduction in manual intervention, and reduced data entry volume and time.
  • The ability to support business growth without increasing headcount due to additional staff workload capacity.

Customer Service


How satisfied are your customers with your services and wait times?  Could efficiencies in this area allow you to improve your customer satisfaction rating and put you in a position to win business away from the competition?  If you are seeking to leverage electronic signatures to improve service and satisfaction, add the following estimates to your ROI model:
  • The reduction in customer wait times in actual terms and as a percentage improvement. 
  • The percentage improvement in customer satisfaction levels through simpler, faster and better methods for transaction and form processing and approvals.

Environmental Responsibility

Do your customers, employees and shareholders value and reward environmental responsibility?  Does your organization have an environmental policy or paperless initiative?  If you are looking to electronic signatures as a means of achieving your environmental responsibility goals, add the following estimates to your ROI model:

  • The reduction in the amount of greenhouse gas emissions through elimination of ground freight transportation of documents.
  • The number of trees saved through paper reduction.
  • The shareholder value derived through positive public image and goodwill.

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