The ROI of DAPs: Are They Worth It?

If you’re managing a business or even just a department within a larger organization, one goal remains eternal: maximizing efficiency and increasing productivity. One relatively new tool that has proven to be effective at making that goal a reality is the Digital Adoption Platform (DAP). But DAPs cost money and as with any investment, one basic question arises: Is it worth it? In this post, we’re going to take a closer look at the Return on Investment (ROI) of DAPs, exploring both the tangible and intangible benefits they offer.

But First—What’s a DAP exactly?

To give you a quick refresher, a DAP is a software layer that sits on top of other applications, providing real-time guidance, training, and support for users. DAPs streamline the adoption of new technologies and processes, making sure that employees can effectively use those expensive software tools that are going to bring you all of that efficiency and productivity!

ROI Recap

If you’re reading a post like this, it’s probably not necessary to explain the concept of ROI in too much detail, but in a nutshell—you want to invest money in tools that will allow you to make more money than you spend on those tools. Voilà! It’s a simple concept that lies at the core of almost all software installation projects both big and small.

The main purpose of analyzing the ROI of DAPs is twofold:

1. To quantify the value that DAPs bring to an organization
2. To make informed decisions about whether to invest in a DAP and which solution to choose

Which brings us to a big problem facing us when we talk about the ROI’s of DAPs. Determining exact numbers and taking into account both the tangible and intangible benefits of implementing a DAP is hard. We’ll try to pick apart the various factors involved, but concrete numbers are sometimes hard to come by.

One of the few ROI studies out there with hard numbers attached is a Forrester Research study of DAP provider WalkMe’s estimated ROI. We explored it in more detail in an earlier post that you can find here. To give you a quick summary, their study used four companies to create a composite customer and found that by using WalkMe’s DAP solution, they achieved an incredible ROI of 368% over three years. The study also found that the platform helped businesses avoid costly software customizations and reduced the need for additional support staff.

To quote our earlier post: “The study also showed DAPs effects on user retention and upselling. When used with customer-facing software products and applications, user retention increased by 35%, with a 10% growth in upselling. These kinds of numbers pretty much speak for themselves. But even with these real numbers, comparisons remain difficult as the study was based on four bigger customers so the numbers themselves are correspondingly large. One thing we can safely say is that whether you’re a smaller company with a limited number of users, or a big player with thousands of users, the costs are quite reasonable for something that returns so much value so quickly.”

Initial Outlay

What Kind of Costs are We Talking About?

When considering the implementation of a DAP, businesses must account for various costs:

• Software licensing fees
• Implementation and setup costs
• Customization expenses
• Ongoing maintenance and support

DAP Pricing Models

DAP providers offer various pricing models to cater to different organizational needs and budgets. Understanding these models is essential for choosing the most cost-effective solution. The main pricing structures include:

Subscription-based Model

Involves monthly or annual fees based on the number of users or features.

Pros:

• Lower initial investment
• Predictable ongoing costs
• Often includes regular updates and support

Cons:

• Costs can accumulate over time
• May become expensive for large-scale implementations

Use case: A growing company that wants to gradually roll out a DAP across departments, scaling usage and costs as adoption increases.

One-time Fee Model

A single upfront payment for perpetual use of the software.

Pros:

• No ongoing licensing fees
• Can be more cost-effective for long-term use

Cons:

• High initial investment
• May not include ongoing updates or support

Use case: A small to medium-sized business with a stable software environment that prefers to make a one-time investment rather than ongoing payments.

Usage-based Model

Costs determined by the level of platform utilization.

Metrics might include:

1. Number of active users
2. Frequency of feature usage
3. Volume of content created or accessed

Pros:

• Aligns costs with actual usage
• Can be more cost-effective for organizations with fluctuating needs

Cons:

• Less predictable costs
• May become expensive with high usage

Use case: A company with seasonal fluctuations in workforce or software usage, allowing them to pay more during peak periods and less during quieter times.

Tiered Model

Offers different levels of service at various price points.

Tiers might be based on:

• Number of users
• Available features
• Level of support provided

Pros:

• Allows organizations to choose a plan that best fits their needs and budget
• Provides option to upgrade as needs grow

Cons:

• May require careful assessment to choose the right tier
• Upgrading tiers can lead to significant cost increases

Use Case: A diverse organization where different departments have varying DAP needs, allowing them to select appropriate tiers for each group.

Hybrid Model

Combines elements of multiple pricing models.

Example: Base subscription fee plus usage-based charges for certain features.

Pros:

• Offers flexibility to tailor pricing to specific organizational needs
• Can provide a balance between predictable costs and usage-based pricing

Cons:

• Can be complex to understand and manage
• May require careful monitoring to control costs

Use case: A large enterprise with a core group of consistent DAP users, but also occasional or specialized use cases that are better suited to usage-based pricing.

When evaluating these pricing models, businesses should consider:

• Current and projected number of users
• Anticipated usage patterns and intensity
• Budget constraints and preferences (e.g., CapEx vs. OpEx)
• Long-term growth plans and potential for scaling
• Need for ongoing support and updates

By looking closely at these factors and matching them with pricing models, organizations have a better chance of choosing a DAP solution that meets their needs and offers the most favorable financial structure for their specific circumstances. This is obviously a crucial part of maximizing the potential ROI of a DAP implementation.

Implementation Time & Resources

Implementing a DAP can require a significant investment of time and resources:

Initial setup time:

• Typically ranges from a few weeks to several months, depending on the complexity of the existing software ecosystem

Resources:

• IT personnel for integration and troubleshooting
• Content creators for developing guidance materials
• Project managers to oversee the implementation process

Training requirements:

• Initial training for administrators and content creators
• End-user training to familiarize employees with the DAP interface

System Integration:

• Compatibility checks with current software
• Potential customization to ensure seamless integration
• IT support costs for ongoing maintenance and updates

Use Case: A mid-sized financial services company implements a DAP. The initial setup took six weeks and required a team of three IT specialists and two content creators. The company estimates the total implementation cost, including personnel time and software licensing, at $75,000 for the first year.

Short-term Benefits

Immediate Improvements in User Onboarding

One of the most significant short-term benefits of DAPs is the enhancement of the user onboarding process:

• Faster onboarding: New employees can become productive more quickly
• Reduced training time: Interactive guides and walkthroughs decrease the need for extensive manual training
• Improved user confidence: Real-time assistance helps users navigate complex systems with greater ease

Real World:

After implementing Inline Manual, LMC’s Teamio, an applicant tracking system, experienced significant improvements in user engagement and product experience. The solution allowed them to create in-app guidance without relying on developers, saving time and reducing costs. User onboarding became smoother, with 77% of targeted users engaging with new features and 73% completing guided walkthroughs. The flexibility and ease of use of Inline Manual enabled the team to launch updates weekly, keeping customers informed and satisfied while freeing up developers for more critical tasks.

Short-term Productivity Gains

DAPs can lead to immediate productivity improvements:

• Increased efficiency: Users spend less time searching for information or struggling with software features
• Reduced errors: Step-by-step guidance minimizes user mistakes
• Enhanced feature utilization: DAPs can highlight underused features, encouraging broader software adoption

Short-term ROI metrics to consider:

• Time saved per user per day
• Reduction in support tickets
• Increase in feature adoption rates

Real World:

RemoteLock, a universal access control platform implemented a DAP and achieved significant improvements in customer support efficiency. The solution led to a 75% reduction in customer touchpoints, a 58% faster agent ramp-up time, and a 30% decrease in repetitive cases.

Long-term Gains

Improved User Engagement

The long-term benefits of DAPs become even more visible as users become increasingly proficient:

• Continuous learning: DAPs facilitate ongoing education about software updates and new features
• Improved software utilization: As users become more comfortable, they tend to explore and use a wider range of software capabilities
• Adaptability to changes: When software updates occur, DAPs can quickly guide users through new interfaces or processes

Long-term Cost Savings

Over time, DAPs can lead to substantial cost savings:

Reduction in support and training costs:

• Fewer support tickets
• Less need for in-person training sessions

Decreased employee turnover:

• Higher job satisfaction due to reduced frustration with software tools
• Improved confidence in job performance

Real World:

NuVision Auto Glass, an automotive services organization implemented a DAP and the solution reduced employee training time from 7 weeks to 2 weeks, enabled rapid process rollouts, and created more self-sufficient teams. Quality assurance scores increased by 20% on average, while costly write-off losses decreased by 60%. Supervisors saved over 100 hours per month in correcting customer work orders. The platform also increased employee engagement and saved thousands of hours annually on training. Additionally, sales-related issues dropped to just 0.9%, and customer service representatives achieved 100% quality assurance scores.

Hidden Costs and Risks

Potential Pitfalls

While DAPs offer numerous benefits, there are potential hidden costs and risks to consider:

Unexpected costs:

• Additional training for DAP administrators
• System upgrades to support DAP integration
• Content creation and maintenance expenses

Implementation risks:

• Data security concerns when integrating with sensitive systems
• Compatibility issues with legacy software
• User resistance to adopting new tools

Expectation Management

To mitigate risks and ensure a successful DAP implementation:

• Set realistic goals and timelines
• Involve stakeholders from various departments in the planning process
• Develop a comprehensive change management strategy
• Regularly assess and adjust the DAP strategy based on user feedback and usage data

Measuring Success

Key Performance Indicators (KPIs)

To accurately gauge the ROI of a DAP, businesses should track relevant KPIs:

1. User adoption rates
2. Productivity metrics (e.g., time saved, tasks completed)
3. Support ticket volume
4. Employee satisfaction scores
5. Software proficiency levels
6. Time-to-competency for new hires

How Do You Measure ROI?

Effective ROI measurement requires the right tools and methods:

• Analytics dashboards provided by DAP vendors
• User surveys and feedback collection
• A/B testing of different training approaches
• Integration with existing performance management systems

Almost all DAP providers offer built-in analytics that allow companies to track user engagement, content effectiveness, and overall platform ROI.

Comparative Analysis

ROI Comparison of Top DAPs

When evaluating different DAP solutions, consider the following factors:

• Feature set and customization options
• Ease of implementation and use
• Integration capabilities with existing software
• Pricing structure and scalability
• Customer support and community resources

Open Source vs. Commercial Solutions

When considering DAP options, businesses may choose between open-source and commercial solutions:

Open-source DAPs:

Pros:

• Lower upfront costs
• Greater customization potential
• Community-driven development

Cons:

• Limited support options
• Potentially higher implementation and maintenance costs
• May lack advanced features

Commercial DAPs:

Pros:

• Comprehensive feature sets
• Professional support and regular updates
• Easier implementation and integration

Cons:

• Higher licensing costs
• Potential vendor lock-in
• Less flexibility for unique customizations

A cost-benefit analysis should consider not just the initial costs but also long-term expenses and potential ROI for each option.

What do the Experts Think?

Insights from Industry Leaders

Industry experts consistently emphasize the growing importance of DAPs:

Forrester’s New Tech Digital Adoption Platforms reports that VC investments in DAPs grew over 500%, from $76 million to $470 million. Everest estimates in their Digital Adoption Platform State of the Market report that the DAP market grew about 50% during the pandemic. The study also forecasts even more growth—about 40-50% over the coming years. In their Market Guide for Digital Adoption Platforms Gartner estimates that 70% of organizations will employ digital adoption platforms across all programs to overcome inefficient application user experiences by 2025.,

Digital adoption platforms offer step-by-step training to quickly onboard new users and introduce existing users to new software. This reduces the need for in-person training and helps organizations scale their training efforts. A Forrester study from 2020 found that Digital adoption platforms reduced employee training time on apps by 60 percent. -Simon-Kucher, Global Consultancy

Amy Loomis, research vice president at IDC concludes that “DAPs will evolve to address a broader range of enterprise needs, including AI-specific challenges, solidifying their role as a preferred approach to maximizing software ROI.” By 2027, IDC predicts that 80% of G1000 organizations will rely on DAPs to mitigate technical skills shortages.”

A Gartner survey of 4,800 full-time employees found that the average desk worker now uses 11 software applications to do their jobs, up from just six in 2019. And poor knowledge sharing and training comes at a cost for major US corporations, with an estimated annual productivity loss of $47 million. The Panopto Workplace Knowledge and Productivity Report reports that knowledge workers in the United States spend 5.3 hours weekly waiting for support from coworkers or recreating existing company knowledge. This is a problem crying out for a clever solution and that’s exactly what DAPs are designed to do.

What’s the Bottom Line?

Costs and Benefits

After exploring all of the many factors that go into the costs and benefits, it’s clear that Digital Adoption Platforms can offer significant ROI for many organizations:

• Short-term benefits include improved onboarding and immediate productivity gains
• Long-term advantages are sustained user engagement and substantial cost savings
• Potential risks and hidden costs can be avoided with proper planning and implementation strategies

Final Takeaways

For businesses considering a DAP:

1. Conduct a thorough needs assessment
2. Evaluate multiple DAP solutions against your specific requirements
3. Develop a clear implementation and change management plan
4. Set realistic goals and regularly measure progress
5. Be prepared to iterate and adjust your approach based on user feedback and data

While the initial investment in a DAP may seem substantial, the potential for long-term savings, increased productivity, and improved user satisfaction is very likely to lead to a positive ROI.

As with any big business or investment decision, a personalized ROI analysis tailored to your organization’s actual needs is crucial in deciding whether a Digital Adoption Platform is the right choice for your company’s digital transformation journey.

A great place to start your project is right here—Inline Manual’s comprehensive DAP is designed to maximize your software ROI by optimizing user experience across applications. Its features, including interactive walkthroughs, tooltips, and in-app help centers, enable faster user adoption and proficiency, reduced support costs and accelerated time-to-value. The platform’s feedback collection, customization options, and multilingual support further enhance its ROI potential. To experience these benefits firsthand, you can sign up for a free trial or personalized walkthrough here, or even arrange a tailored Proof of Concept to see how Inline Manual can deliver real financial benefits for your organization.