Summary
In this episode, Sean discusses the importance of Return on Investment (ROI) and how B2B SaaS founders can measure ROI for their users. He emphasizes the value of understanding the customer’s perspective and offers tips to identify the slowest step (bottleneck) in the process in order to optimize it and generate maximum ROI.

Key Points

• ROI measurement requires understanding the customer’s perspective
• Identify the slowest step (bottleneck) in the process for maximum ROI
• Optimizing a step that is not the bottleneck won’t provide ROI
• Time savings is a great way to calculate ROI
• Ask customers what would break first if they had to double output
• Determine how much time is being wasted on the bottleneck
• Automating or saving time on the bottleneck leads to maximum ROI

Quotes

• “There are lots of ways to measure return on investment, but the perspective ultimately that matters most is the one of your customer.”
• “The slowest step in the process, coincidentally, is also the bottleneck.”
• “If you’re consistently working on optimizing a step that is not the slowest in the process, there won’t be any ROI”
• “By far, one of the best [ways to calculate ROI] is the time savings element.”
• “If volume and output needed to double immediately, where would your process break first?”
• “Start there. Find out just how much time is being wasted, and then figure out how your B2B SaaS can help optimize that step.”
• “The more you’re able to eliminate [the bottleneck], the more return on investment you’re able to provide to them.”