Are you contemplating an investment in a Digital Asset Management (DAM) Solution or investigating the right way to justify your recent expenditure? Measuring ROI isn’t as simple as projecting an increase in sales over time or a break-even point. In lieu of conventional ROI metrics, there are reliable metrics and measures we recommend to help demonstrate the value of a DAM in all but the smallest organizations.
- Digital Asset Utilization. Count the total number of digital files that are accessed, shared and downloaded and divide this number by the total number of assets in your digital management system for your Digital Asset Utilization percentage or ratio. If you haven’t yet converted from portals or another asset management system, now is a good time to record this metric for future comparisons. You may even be able to backtrack and review asset utilization from legacy systems in order to make this comparison.
Beyond the Digital Asset Utilization rate, you can also see if there have been any corresponding changes in pipeline velocity and opportunity win/loss rates after your DAM system was implemented. You can’t establish causation, but a correlation can strengthen your case.
If you don’t currently have a DAM system in place, you’re probably using manual methods to determine how many assets you’re working with, your utilization rate, and where they are being used in the sales process. These functions that were once performed manually are now performed automatically by the DAM system. Estimate the hours previously spent in this task, multiplied by average hourly wage to determine what should be one of your greatest cost savings with a DAM.
- Marketing/Creative Staff Productivity. Now that you’re monitoring asset utilization, you’re going to be creating more of the kinds of assets that get used regularly and less of the kinds that don’t. This results in your creative staff wasting far fewer hours on ideation, creation, and curation of unnecessary content. After a DAM implementation, most companies report an 80 percent reduction* in the volume of assets available to the representatives.
- Cost Savings. Consider your hard costs before and after your DAM system is implemented. What is the difference in hard costs including hardware, software licenses, support fees, and personnel needed to maintain asset management systems? What is the difference in soft costs, including work and time efficiency gains across your organization?
- User login frequency. Evaluate logins in a month divided by the total number of authorized users to arrive at your system utilization ratio. A month with a low ratio tells you when to investigate issues in workflow and areas of customization. You want more use, but you also want to realize reductions in the time spent accessing information, which DAM provides in “push” asset delivery. Prior to DAM, we’ve seen that sales representatives would often spend as much as 20 percent of their time trying to find the right assets in portals.
These metrics and measures should prove that not only is the DAM expenditure necessary, but that delaying this investment could put your sales force at a considerable disadvantage. If you would like to learn more about measuring or reporting ROI, contact a Bridge Metrics executive today at 877.801.7158.
* Sirius Decicions: “What is the ROI of Your Sales Asset Management Solution?”