How Is No-Code Automation ROI Calculated? (Part 3/3)
💰 The ROI Equation
⚙️ Welcome to Part 3/3 in the series: How Is No-Code Automation ROI Calculated?
In this article, we’ll discuss identifying quick wins, calculating ROI for your no-code automations, and exploring resources to keep your automations running smoothly. We’ll also recap the previous parts of this series, where you learned about Christine’s manual workflow, automation challenges, and how to build a Zapier automation.
Identifying Quick Wins: Easy Opportunities for No-Code Automation
Automating small tasks is the best way to overcome friction if you’re new to the process. To identify potential tasks for automation:
Then, explore Zapier or Make to find the necessary software to automate these tasks (see the available triggers and actions in this Scribe Tutorial).
Evaluating the Investment: Time and Resources
Implementing automation requires an initial investment of time and resources, which can be a barrier for most busy solopreneurs like yourself. However, it's crucial to view these as investments. Trust me. Done right, and you’ll free up time in the long run, leading to increased productivity and focus on strategic goals.
To better understand the value of your investment in automation, let's take a closer look at how to calculate the return on investment (ROI) for your no-code automations.
Unpacking ROI: Types and Calculations 💰
ROI gauges an investment's efficacy—for instance, how automation can streamline your business tasks. There are two ROI forms: hard and soft.
Hard ROI is quantifiable and includes:
Money saved from labor costs
Soft ROI, though trickier to measure, is equally important and comprises:
Reduced human error
Better well-being and decreased stress
More satisfied customers due to consistent service
Calculating ROI for No-Code Automations 📊
To calculate hard ROI, use the following formula:
Time (spent on one task) x Frequency (of performing tasks per month) x Cost (per hour) x 12 Months = Yearly ROI
Hard ROI Formula
Make a copy of this template to help you calculate your ROI. Note that this formula assumes that automation will eliminate the need for human labor for each task. If automation only reduces the time required or requires some human oversight, the ROI will be lower than what is calculated using this formula.
Automation ROI Calculator Example
If we use the same data from the spreadsheet above, then the Automation ROI is clear as day.
Calculating soft ROI is more challenging, but it’s still essential to assign it a monetary value to get a more accurate picture of your overall ROI. Download this spreadsheet to help you calculate soft ROI.
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