How Is No-Code Automation ROI Calculated? (Part 3/3)
💰 The ROI Equation
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: 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:
Evaluating the Investment: Time and Resources
Implementing automation requires an initial investment of time and resources. This is typically a barrier for most busy solopreneurs like yourself.
But, it’s important to view automation as an investment. 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 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:
Reduced human error
Better well-being and decreased stress
Increased customer satisfaction and experience due to consistent quality 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.
Automation ROI Calculator Example
Calculating SOFT ROI
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.
The best resource I’ve found is this Coda doc, ‘To Automate or Not‘ made by Bill French
Another resource is this spreadsheet by the BOC Group.
Source: Soft ROI Whitepaper Download
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