8 Essential Steps to Measure your Intranet ROI

How to Measure the Intranet ROI?

1. Define the core objectives

Before you can start an intranet analysis, the first step is to define exactly what you want to study. In other words, what types of things were employees complaining about before the intranet was introduced that kept them from doing their work well?

In this case, “Doing their work well” would be anything that interfered with productivity, responding to customers quickly and effectively, finding the best solutions to work problems, and being fully engaged at work. You may also want to address the “brain drain” that occurs when a key employee leaves or retires. That person’s knowledge, often gleaned from years of industry experience, goes out the door with them.  

2. Get an analytics tool for the intranet

At one time, intranet effectivity was generally measured based on the uptake. The defining factors were based on the number of pages, the number of people contributing content, etc. As intranets evolved, measuring the ROI also included measuring activity metrics. It became important to measure the number of hits and comments pieces of content were receiving. 

Now, advanced intranet software is capable of measuring even more metrics, such as cost savings or money made, lower development costs, and customer service scores. All of them can be used to measure the impact and value that the intranet brings to your company. 

3. Analyze the intranet KPIs

KPIs (Key Performance Indicators) are used by many businesses to measure their success. These defined measurements help businesses track performance over time to help executives and managers comprehend the steps involved in achieving success toward a goal. Companies will evaluate the KPIs to determine where they are in the process and to compare how their business is faring compared to similar ones.

It’s important to measure the KPIs before and after the intranet is introduced, as well as on an ongoing basis. When evaluating the KPIs, look for trends in the indicators to give you the answers you need.

Recommended article: Top 15 Intranet KPIs & Metrics to Monitor for Enterprises

4. Use internet surveys to measure employee engagement

Why would you want to measure employee engagement? Employees are more motivated and productive if they are engaged in their work. A report from the Workplace Research Foundation found that 38% of engaged employees are more productive. When employees are engaged, turnover rates drop significantly. Current employees are more likely to recommend your company as a good place to work to their friends and acquaintances.  

An anonymous internet survey should ask questions about the following:

• Management effectiveness
• Whether their work is meaningful
• If there is room for advancement
• Relationships with co-workers
• Work-life balance

5. Measure your page bounce rates

Webmasters have tracked their websites and landing pages’ bounce rates to determine a conversion rate, relevancy, and for content management purposes. A high bounce rate indicates that a site visitor was only on the page for a short time. They may have only spent a few seconds skimming the content on the page. When the bounce rate is low, it means that the viewer is staying on the page and giving the content their full attention so they can digest it. 

Bounce rates can be determined by setting parameters that track the number of visitors to a page. They record how long it takes before they click away to move to another page. Bounce rates can provide great insight into what types of intranet content is most popular with employees.

6. Determine your hard cost savings

At this point, you’ll want to find out whether you have a cost-effective intranet. The intranet investment can be a significant one for your business and it’s crucial to determine how intranet use is impacting your bottom line. Hard cost savings include the following:

• Lower paper costs
• Cheaper toner expenses
• Fewer phone calls
• Reduced travel costs

These costs can add up over time. Start with monitoring how often paper is being ordered for your business. Start with the amount being used before the intranet was introduced and then see how the trend continues. The amount should drop as employees can communicate more easily using alternate methods instead of printing off hard copies. 

7. Calculate your soft cost savings

Soft costs involve software installations and distributions. Third-party and customized software applications can be run on top of an intranet. This means you don’t have to install applications on individual units and manage them separately. 

Once you have an intranet in place, applications are hosted in a central location. Any upgrades are also centralized. This system saves time and money. It is also an efficient method, where IT support does not have to worry about having access to the latest versions. If your company employs remote workers, this feature can lead to big savings. 

8. Determine whether overall efficiency has increased

Overall efficiency is a crucial metric for tracking your intranet ROI. An efficient company keeps costs down and is well-positioned for the future. It is lean, nimble, and able to respond quickly to market changes. Efficiency can be measured by a company’s savings as well as how quickly it can launch new products and services and get them to its target market. 

With the help of an intranet, employees can collaborate much more easily. This allows them to deliver products and services much more quickly. To determine how well your intranet helps your company in this regard, compare how quickly the process works using standard methods and when you use the intranet.