How To Determine the ROI You Can Expect When Using OnTrak’s Custom POS and Beverage Menu Tracking Tools

The ROI of OnTrak Software

Due largely to the changing landscape of factors that impact the total cost of the process of fabricating point-of-sale (POS) materials and since it has been a few years since we’ve visited the subject of determining the financial impact of using OnTrak’s products, now seems a good time to revisit the subject of determining the ROI of our POS Tracking software - SignTrak® and MenuTrakâ„¢.

• SignTrak manages the custom, temporary POS signage process. The system automates communication between sales and sign shop; eliminates POS errors and reduces time-to-market; and tracks both POS costs and supplier recovery.

• MenuTrak manages the custom menu creation process. The system automates menu configuration, approval and production of custom beverage menus; and tracks costs and improves supplier recovery.

In more than 10 years of being in business we’ve never seen less that a two to one ROI.

Where Distributors Start

The process of incorporating one of these tools is straightforward.

Initially our customers begin using one of these products to improve POS sign and Menu ordering and to track the costs associated with the design and production of custom point-of-sale materials by the distributor’s in-house graphics and printing department.

Generally, after a few weeks of usage, customers come to rely on OnTrak products to get their POS to market faster than ever. That is, OnTrak’s products shorten the length of time from POS ordering to placement in retailers’ aisles and in front of restaurants’ patrons.

Often, at about the same time, it becomes apparent that the number of POS and menu ordering and production errors drops virtually to zero as do the number of reworks. When these “POS materials” (e.g., custom signs, displays, menus, etc.) have to be remade due to an error it can cost days more to get them into the trade — leading to lost sales.

Additionally, reworks, always expensive, have only become increasingly so over time due to the labor costs and lost time involved.  When you stop to think of it, you’ll remember that POS design and production includes not only paper, ink and menu covers, but also that a reworked sign or menu takes the sales rep’s time and the graphic designer’s and print operator’s time away from doing other things that can help your sales force be more productive. Also, a day’s delay in getting a sign in the trade can cost market share, unless your competition’s POS is similarly delayed.

One more thought: Even though it is not directly measurable, your customer’s time is also impacted when at-retail signage or menus are incorrectly produced and have to be reworked.

OnTrak’s Return-On-Investment (ROI) Calculator

The following figures, hopefully, are self-explanatory. In each step the cells in the spreadsheet, highlighted in light yellow, will contain information specific to your organization. In our example, below, we have entered averages based on our nearly 10 years of experience with beverage alcohol distributors.

We use a three-step process:

Step 1 — Calculate the Cost and the Savings of an OnTrak Solution

The price of our software is based on the number of users of the system (e.g., SignTrak or MenuTrak) — we’ve entered information into the cells of a spreadsheet to determine the number of sales reps, managers, administrators, etc. who are involved in ordering, producing and placing POS materials and we’ve obtained some other pertinent data from our customer in order to determine the costs (in time and money) of POS tracking: Ordering and production activities, reworks, etc.

You’ll note in Figure 1, additional gross margin per representative will likely be generated as a result of the time saved entering orders and in communications between the reps and the graphics department and print shop. It follows, the rep will have more time to spend on selling rather than entering and tracking POS orders — this additional time selling can result in additional sales as well as increased gross margin for your business.

Figure 1:

 

 

 

 

 

 

 

 

 

 

 

 

Step 2 - Calculate the Print Shop Production Costs, and the Savings from the Elimination of Errors and Reworks 

Our savings (ROI) calculator takes a look at the cost of your print shop personnel and the time (and money) that is saved using our automated workflow system. (Figure 2)

The savings come in two major areas:

1. Time - There is a dramatic reduction in the time for your print production team since we offer a fully automated system that helps them in the areas of batching jobs, manual data entries, the virtual elimination of error and reworks, and the time spent on the phone with sales personnel who want to know the status of their orders.

2. Cost of Errors and Reworks — OnTrak solutions virtually eliminate all errors and reworks. With an electronic, paperless workflow system, all orders coming into the print department are accurate and complete. There is no need for time consuming phone conversations since the system automatically generates a message to the sales teams when their order is accepted and completed.

Figure 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 3 — Calculate Your Return on Investment (ROI) in OnTrak Software Solutions

There is one more savings area to discuss and then we’ll get on to calculating the Total ROI from investing in an OnTrak Software Solution.

Should your suppliers require reports to confirm the amount of money (brand support) you spent on custom POS signage or beverage menus then our solutions will save you significant time in this area. All recovery reports are available at the click of a mouse, and therefore will save your staff considerable time and money.

Finally,

Our ROI calculator:

1. Subtracts the cost of an OnTrak subscription ($10 per user, per month, in our example), from the savings determined by a typical medium-sized beverage alcohol distributor, to calculate the payback per dollar (ROI) spent on either SignTrak or MenuTrak.

2. In this case the ROI is 3.527 to 1. (Figure 3)

This means that for every dollar you spend on an OnTrak Software product your savings will be $3.53.

Figure 3:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The above is an example based on the numbers we used in this spreadsheet. It is likely your numbers will differ due to your situation. To determine your savings for subscribing to OnTrak products, please contact us and we’ll work up a spreadsheet using your data. We’re sure you’ll be impressed.

In more than 10 years of being in business we’ve never seen less that a two to one ROI.

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To request a live, 30-minute demonstration of our POS Tracking Software, and learn more about our ROI Calculator, please call our product experts on 513-936-4041, or click the button and select the one or more products from the following list:

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SignTrak - Custom Printed POS Signs

MenuTrak — Custom Printed Beverage Menus

*Integrated reporting and analysis tools are included in each of our POS Marketing software solutions

Request a Demo

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