ROI Analysis: Customer Web Portal for your TMS System

by | Dec 3, 2024 | Uncategorized

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The ROI for implementing a customer web portal can be calculated by considering the costs of implementation and operation against the quantifiable and intangible benefits it provides.

Key Features of the Customer Web Portal

    1. Shipment Status Tracking: Customers can monitor shipments in real-time from origin to destination.
    2. Anonymous Tracking: Allows users to track shipments without logging in, enhancing accessibility.
    3. Detailed Shipment Information: Drill-down views of shipment details, including scanned documents like PODs, BOL, Signatures, photos and Invoices.
    4. Interactive Map Views: Displays shipment routes with granular detail for better transparency in the portal and the trucking software
    5. Unlimited Users: Most TMS will charge a flat monthly fee for this and you can add as many customers and users as you want.

1. Costs

a. Development Costs  (Covered by TMS Vendor)

  • Initial design and development of the portal
  • Integration with shipment tracking systems, mapping APIs, and document management systems.

b. Maintenance and Hosting Costs (Covered by TMS Vendor)

  • Server hosting, software updates, and user support

c. Additional Costs

  • Employee training to assist customers with using the portal.
  • Trucking company marketing costs to promote portal usage.

2. Benefits

a. Tangible Benefits

  1. Cost Savings:
    • Reduced Customer Support Costs: Automated tracking and information reduce customer inquiries.
      Example: If the portal reduces support calls by 1,000 annually at $5 per call, savings = $5,000/year.
    • Faster Document Access: Customers can access scanned documents without contacting your team.
  2. Improved Efficiency:
    • Operations staff spend less time on manual inquiries, freeing time for high-value tasks.
  3. Increased Customer Retention:
    • Offering transparency improves customer satisfaction and loyalty. If retention increases by just 5% for 100 customers with an average revenue of $10,000 annually, additional revenue = $50,000/year.
  4. Upsell Opportunities:
    • Portal use provides touchpoints to upsell premium features or services, generating additional revenue.

b. Intangible Benefits

  1. Enhanced Customer Experience:
    • Real-time access and detailed shipment views increase trust and satisfaction.
  2. Competitive Differentiation:
    • Demonstrates commitment to innovation and transparency.
  3. Brand Perception:
    • Positions the company as modern, customer-focused, and efficient.

3. ROI Calculation

roi calc

Given Assumptions

  • Annual Portal Costs: $10,000 (Year 2+).
  • Annual Tangible Benefits:
    • Reduced Support Costs: $5,000.
    • Increased Retention Revenue: $50,000.
    • Total Benefits: $55,000.

Interpretation

An ROI of 450% means that for every $1 invested in the portal, your company earns $4.50 in net benefits. This represents an exceptionally high return, primarily driven by the significant increase in customer retention revenue and operational cost savings.

Would you like further breakdowns, such as first-year ROI including development costs, or an analysis of the breakeven point? Get in touch to evaluate your ROI on using our DTMS web portal. Book a Web Portal Demo  

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