One of the biggest hurdles when pursuing new technology is defining Return On Investment (ROI). Intuitively, you probably have a grasp of the benefits, but you need to put pen to paper (as it were) and help justify the cost internally. So what's the ROI for commercial real estate software?
Fortunately for you, most technology firms work hard to proactively address this issue. In fact, you can probably find stats on their website or after a quick initial call. Here are some common questions to ask yourself about the measurement of return claims that are being made.
Generally speaking, ROI is a function of increasing revenue or decreasing costs. But if it were really that simple, there wouldn’t be thousands of pages on Google dedicated to the topic.
Since each Commercial Real Estate business is unique, ROI is a very unique calculation. We can generally identify some themes, however:
One of the most commonly used, but least persuasive, ROI metrics is time saved. Of course most software saves time, but frequently the time saved is for someone other than the person paying for the technology.
As you think about ROI, think about the persona you are drafting the proposal for. The boss usually isn’t that persuaded by a new hire analyst, saving some time. Spend time thinking about how each stakeholder will benefit from this new technology and define ROI in a way that speaks to them.
Stay in the loop and read more industry insights!
See what LoanBoss can do here.