From SaaS Waste to Value Realization: 6 Steps to Improve Software ROI
Welcome to Digital Adoption Insider, your source for common challenges and actionable tips on driving digital and software adoption. If you're interested in staying up-to-date on the latest digital and software adoption trends, click the "subscribe" button above.?
Enjoy the Digital Adoption Insider? Support us by sharing our newsletter with your network and subscribing today!?
As we head into the final months of 2024, many businesses are focused on one thing—budget planning.
And when it comes to planning, one big question tends to come up: are our software investments really paying off?
Technology plays a huge role in driving digital transformation. In fact, the average organization now uses hundreds of software applications to fuel their digital innovation efforts.?
Back in 2020, companies were using an average of 80 software tools—a staggering 500% increase from just a few years earlier. Today, large organizations are subscribed to over 288 SaaS tools, which only adds to the complexity and cost of managing a tech stack.
With global enterprise software spending exceeding $3.5 trillion, it's easy to see why organizations are questioning the return on investment. Software costs are a major part of the budget, and with more tools being added each year, the pressure is on to ensure every application delivers real value.
But it’s not just about the price tag. In a world where digital transformation is a top priority, companies need to prove that their technology investments are driving results, not just adding to the noise.
Let’s how to measure the ROI of your software investments—and why it’s crucial as you finalize your strategy for the year ahead.
What Is Software ROI?
When we talk about software ROI, we’re really asking: what’s the actual return on investment you’re getting from your tech stack? It’s all about measuring how well your software performs after implementing it.
The return can show up in all sorts of ways—like increased employee productivity, smoother workflows, or automating those tedious manual tasks. It could be better data analytics, more accurate reporting, or just overall improved efficiency across the board.
But here’s the kicker: a lot of companies are spending big on software they barely use.?
According to Blissfully, the average business wastes over $135,000 every year on unused applications.?
That’s a huge amount of money simply slipping through the cracks.?
Why does this happen? Siloed teams buying similar tools, forgotten subscriptions, licenses tied to employees who no longer work there—the list goes on.
For organizations looking to maximize their digital transformation efforts, understanding the true ROI of your software is more important than ever.
How Do You Calculate ROI for Software Investments?
At its core, calculating ROI is pretty straightforward:
(gain from investment) – (cost of investment) / (cost of investment)
When it comes to software implementation, things can get a little trickier. Software impacts so many parts of your business—productivity, efficiency, workflows—that nailing down an exact number isn’t always possible. But that doesn’t mean you can’t create a solid formula to get a good sense of your software’s ROI.
The best approach? Start by outlining what potential ROI looks like before the software implementation even begins. This will give you a benchmark to track how the software impacts different areas of your organization over time.
A helpful tip is to prepare two separate ROI reports: one that’s more conservative, showing the lowest reasonable ROI, and another that’s optimistic, highlighting the best possible outcome. Having this range gives you something tangible to present to leadership, giving them both a realistic and a “best-case scenario” view of your software’s value.
While ROI calculations aren’t perfect, they offer valuable insights to guide decision-making and help you better understand the real impact of your tech investments.
Tips to Maximize Your Software ROI
Boosting your software ROI comes down to two key strategies: driving digital adoption and cutting down on SaaS waste—the money spent on unused software licenses and subscriptions.?
Here are some tips for maximizing your software ROI:
1. Implement an onboarding & training plan for new software tools
Before any new software implementation, it’s crucial to have a strong onboarding plan that ensures employees are trained properly on how to use the new application. Without adequate training, your organization will struggle with low technology adoption rates, leading to a waste of resources.
At best, employees won’t fully utilize advanced features that could improve output.?
At worst, they may abandon the new tool entirely, sticking with more familiar methods that aren’t as efficient.?
The result? Poor digital adoption and potentially failed change implementation—a costly mistake for any organization.
Above: With Whatfix, create contextual guidance and in-app training content to onboard your employees on your enterprise software.
2. Invest in on-demand employee support for your applications
Training doesn’t stop after onboarding. Employees need ongoing support to fully adopt and make the most out of enterprise software. That’s where process documentation and IT self-service portals come in—they provide employees with the resources to solve problems on their own, without having to constantly turn to IT for help.
Using a digital adoption platform (DAP) can add even more value. With a DAP, you can provide in-app guidance, step-by-step walkthroughs, and embedded self-help widgets—giving employees the support they need, right when and where they need it. This kind of continuous, on-demand assistance ensures long-term success and keeps your teams fully engaged with the software.
Above: With Whatfix, create on-demand employee support content directly in your applications, such as an embedded self-help widget and interactive step-by-step process tutorials.
领英推荐
3. Create processes for app purchasing
Training and support are important, but having a clear process for purchasing software is just as crucial to avoid SaaS waste.
Without a structured approach, different teams may buy overlapping tools that do the same thing, leading to wasted budgets and redundant software.
To prevent this, establish a formal process for requesting new software. Ensure it moves through the right channels—managers, department heads, and the IT team—so everyone is aligned before any new tools are approved. This way, you can cut down on unnecessary spending and keep your tech stack efficient.
4. Determine software ownership
Having a solid purchasing process is great, but it’s just as important to establish clear ownership over your software tools. Who’s in charge of researching, purchasing, and managing each one? For every new software implementation, assign an owner who will take full responsibility.
Their role should include:
By assigning ownership, you’ll streamline the process, improve accountability, and make sure your software investments are fully utilized.
5. Optimize your IT spending with SaaS inventory management
With so many tools in your tech stack—including critical ones like HCM software—managing SaaS waste can feel like a never-ending task. That’s where SaaS management platforms come into play.
Tools like Blissfully, Zylo, and BetterCloud give you a clear picture of your software usage, helping you cut down on waste and boost your ROI.
These platforms can:
Using SaaS management platforms helps you streamline your software stack, control expenses, and get the most out of your software implementations.
6. Consider your software spend as an investment vs. an expense
Yes, software can be pricey, but it’s important to think of it as an investment rather than just another expense.?
When implemented successfully, the right tools can significantly reduce operational costs across your business. You’ll see benefits like lower manual labor costs, higher productivity, increased revenue, and more.
In the long run, a well-executed software implementation doesn’t just save you money—it drives real value and growth for your organization.
Continue reading about how to measure ROI for software adoption here.?
?? Digital transformation clicks with Whatfix
Whatfix streamlines the build vs. buy decision in user onboarding, offering a no-code platform that crafts personalized in-app guidance and support. It’s an ideal solution for businesses exploring efficient ways to onboard users without the heavy lifting of developing custom software. With Whatfix, create dynamic flows, pop-ups, and task lists for an engaging onboarding experience directly within your apps.
Leveraging Whatfix’s analytics, pinpoint workflow inefficiencies and user engagement blocks to optimize onboarding paths and improve user experiences. The platform’s capability to gather real-time feedback through in-app Surveys further refines your strategy, making Whatfix a compelling choice for businesses seeking a balance between customization and convenience in user onboarding.
?? Essential reads for digital adoption & enablement professionals
Banks are facing data overload and technical debt as they push toward digital transformation, according to Publicis Sapient’s Global Banking Benchmark study. While there’s eagerness to scale AI capabilities, nearly one-third of surveyed banking executives cited budget constraints as a barrier to modernization. Legacy tech, regulatory hurdles, and siloed data across business lines also remain challenges. The report emphasizes that AI and data are the most critical areas for modernization, with banks investing heavily in cloud infrastructure and AI tools to stay competitive.
?? Whatfix news bites
The Times of India featured insights from Whatfix's Romita Mukherjee on how employers are addressing mental health. In light of an EY employee's tragic death, Romita highlighted Whatfix’s focus on accessible wellness resources, which have boosted participation and reduced the stigma around seeking mental health support, fostering a healthier work culture.
?? Whatfix podcast catchup?
In this episode, Neha Smriti, Growth Marketing Manager at Whatfix, chats with Andy Lancaster, Chief Learning Officer at Reimagine People Development, about the importance of empathy and human-centered design in learning and product development. With over 30 years of experience, Andy shares insights on disrupting traditional learning models, navigating digital transformation, and leading with a focus on the learner’s experience.
Don’t forget to subscribe to this newsletter to receive best practices, tips, and insider trends on empowering employees by driving the adoption of new technologies and features.