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QOTW: How do you measure how much it costs to run 1 implementation?

  • 27 March 2023
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Every company should know how much their implementations/customer onboardings are costing them.

Here’s why:

  1. Budgeting and Resource Allocation: By understanding the cost of conducting an onboarding experience, you can allocate your resources and budget more effectively. You can determine how much money and time you need to invest in onboarding new customers.

  2. Customer Lifetime Value: Knowing the cost of onboarding a new client can help you determine the lifetime value of that client. By understanding how much you need to spend to acquire and retain customers, you can make informed decisions about pricing and customer retention efforts.

  3. Process Improvement: Knowing the cost of onboarding a client can help companies identify inefficiencies in their onboarding process. If you or your team is spending an exorbitant amount of time on the same task then you can look at ways to streamline it!

We talked about why it matters, now I want to hear from you on HOW you measure it! It’s definitely easier said than done. so...

💡 How do you measure how much an onboarding costs? 

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Best answer by rondeaul 14 July 2023, 23:46

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We use a formula to calculate the project margin.  

 

(One time fees - (total project hours * $200))/one time fees)

 

This gives us the ability to see what the actual cost of our projects are. The $200 comes from what we would charge clients if we were solely T&M.

 

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