How to calculate your ROI and measure success

Determine how you can guarantee the success of your current awareness service

Show you how to assess the costs of your initial investment, both time and financial

Explain the quantitative and qualitative approaches to return on investment (ROI)

For many library and information managers it can seem like library budgets get tighter every year. The management committee wants statistics, solid numbers and a clear return on investment (ROI). You need to show the value of your service in order to keep your tools, and your service, running. Leveraging your ROI in the appropriate manner, however, can help break through that barrier

Many incorrectly view the library and information service as a cost centre, since it is not always directly billable to clients. As this guide demonstrates, the business value to be gained from utilizing library and information services strategically is tremendous, it’s simply a case of demonstrating that value to your superiors.

Frequently Asked Questions

Quantitative research involves collecting and analyzing numerical data. A quantitative approach is about the numbers: for each unit of money invested into current awareness management, how much does the organisation receive in return?

Qualitative research is the process of collecting, analyzing, and interpreting non-numerical data, such as language. A qualitative approach is about using specific examples, such as case studies, to illustrate the impact your library has on the organisation as a whole.

Negotiations take time, and rushing through the process won’t serve anyone well; unfavourable terms, overpaying for services, poor customer relations, etc. To successfully negotiate a contract, you have to tackle it step by step, going through the easier relationship-building aspects first, and then working your way through the more difficult issues.

Most vendors and large publishers provide room for negotiation, and if you have prepared well, there is the opportunity for some mutually beneficial renewals. For example, multi-year deals mean security for the vendor, and you can save time and money over the next few years. If they are an innovative solution provider, ask if you can beta-test something - you’re at the cutting edge, and they get valuable feedback.

Whatever your library management strengths and weaknesses, get comfortable with negotiating skills. Ask for internal assistance, if necessary. You might have access to a procurement team, or have an ally in the finance or marketing team. There are also courses to learn more about negotiating - get signed up and it might pay dividends.