ROI
Destwin ROI for an actual heating oil company
serving about 8,000 customers.
Assumptions:
- Entry level CSR pay @ $15.00/hour=31,200/yr. With benefits=$38,000.00 / Year=0.30 cents a minute (for higher paid staff, the savings are commensurately greater)
- Customer value=$600 per account
| Destwin Feature | Description / benefit | Known statistics | Return on investment | Estimated annual savings |
Estimated Addl. Annual Income |
| Risk Management | Destwin provides the industry's most advanced tools for earning predictable margins on price protection programs. By seeing what is happening in real time, midcourse corrections can be made to prevent margins from slipping. | Some companies have missed their target margin by over $.10 a gallon. In extreme cases companies have missed their target margins by more than $.25 a gallon. | A loss of only $.10 per gallon on a 500,000 gallon program represents a margin loss of $50,000. A mere penny increase puts $5,000 to the bottom line. | What is it worth knowing that by using Destwin tools, your price protection program will consistently make money and will NEVER pose a future risk to your company? Priceless. | |
| Online Customer Data Look-up | Customers can visit your website, and look up valuable detailed information about their accounts. This saves them time and frees up your staff for more important things. | Customers logged on an average of 30 times a day to look up information (where no further action was done). | Customer service agent is being paid about $0.30 a minute. The average inbound call takes about 12 min. to answer. 30 calls per day X $3.60 = $108 per day in reduced labor. | $28,080 | |
| Online Customer Request Processing | Online request processing such as fuel ordering, tune-up scheduling, service requests, customer feedback, program sign-up, provides an automatic way for customers to communicate with your company, order products or services, or sign up for programs. | Approximately 18 product / service requests are received per day. | Using the same stats as above, 18 calls a day X 3.60 a call would equal an additional $65 per day in labor savings. | $16,900 | |
| Customer Retention Tools | Customer retention tools include our customer loyalty program, discount coupons, and other promotional incentives. | 150 customer loyalty redemptions processed in 45 days. 12 customers saved or retained due in part to loyalty points. Approximately $75,000 in HVAC sales generated. | An estimated 50 customers a year are being saved with loyalty points. At a value of $600/per customer, that’s a $30,000 value. Of course the loyalty system requires you give back something, so assume it's a $10,000 value. | $10,000.00 | |
| HVAC sales have been increased by about 10%. | $150,000.00 | ||||
| Online Bill Pay | Online bill pay provides 24-hour bill pay services for your customers, without any human intervention. | Average of 45 web payments received per day. | 45 payments at 5 minutes each (at $.30 a minute) equals $292.00 per day in labor time saved. | $75,920.00 | |
| Online Price Protection | Online price protection replaces a traditional postal mail program which is costly, slow, and imposes a tremendous risk to the company. Online price protection can be done with significantly less labor hours | Average of 9 price contracts received per day. 50% done directly by customers on-line. | Contracts can take upwards of 20 minutes to do over the phone or by mail. Doing them online saves $54 per day in saved labor. | $14,040.00 | |
| Hosted System Solution | The Destwin system is hosted which means that a dealer need not worry about purchasing hardware, providing a condition space, backups, upgrades, downtime, fault tolerance, backups, IT staff costs. | A typical advanced computer server environment can cost $30-$50,000 per year to maintain when factoring in all of the herein mentioned costs. | $15,000.00 | ||
| Destwin Sales & Marketing Tools | Destwin marketing and sales tools are designed to drive customers toward the products and services they really need. Detailed customer profiles allowing Destwin to automate your target marketing and optimize your customers' time spent on your website. | What if you had the time to research your entire database and pick out only the customers that have good credit and need new heating systems. Then you could craft a marketing plan targeted specifically at those customers. This is precisely what Destwin does. Data specific marketing can be utilized throughout the system for variety of different marketing programs. | This is a very difficult to quantify in terms of dollar value. To replicate this very precise target marketing would take extensive research and labor hours. | $100,000.00 (best guess) | |
| Paperless Statements | Paperless statements are used to replace traditional postal mail invoices and statements | Customers have the benefit of getting their statements much faster and without wasting paper. The faster statements received the faster cash flow is improved | Savings in terms of labor, postage, printing, supplies, etc. are significant. In total a first-class statement including all of the above expenses can be as high as .50 cents apiece. A typical petroleum marketer may send out over 150,000 statements or invoices per year, that's over $75,000. If only 25% of your customers enrolled in paperless statements, that would be a savings of $15,000 per year. | $15,000.00 | |
| Destwin Admin | Internal administration of Destwin systems. | Processing and inputting data from Destwin, including any report follow-ups, etc. including Risk management. | Total administration is about 2-4 hours a day (max) | ($16,640.00) | |
| Estimated Annual Savings | Estimated Additional Annual Revenue | ||||
| $158,300.00 | $250,000.00 | ||||