9 Ways eSignatures Drive ROI in 2023: Streamline Document Workflows
eSignatures have gained popularity for many reasons, and one of the most important is how they streamline document workflows.
Here, we will explore the significance of eSignatures in driving return on investment (ROI) for modern businesses. First, we delve into the differences between handwritten signatures and eSignatures. Then, the concept of ROI is defined and its relevance to business operations is highlighted.
The main focus of this article is on the ways that eSignatures can drive ROI. The list covers a range of advantages offered by eSignatures, including savings in terms of time and costs, increased security and improved compliance with regulations. By analyzing these factors, you can gain insights into the ways in which eSignatures can positively contribute to your financial success.
eSignatures vs. Paper Signatures
One of the main advantages of eSignatures is the ease of use they offer. Unlike paper signatures, eSignatures can be applied to documents with just a few clicks, without the need for printing, signing, scanning and emailing — or mailing — the document back. There is minimal admin required to set it all up — after that, it’s plain sailing.
This not only saves time and money but also streamlines the entire document workflow process.
Furthermore, eSignatures offer greater security than traditional paper signatures. eSignatures are encrypted and permanently recorded, which means that they cannot be forged or tampered with. Another key difference between eSignatures and paper signatures is the level of convenience they offer.
With eSignatures, signers can sign documents from anywhere, at any time by using a computer or mobile device. In contrast, paper signatures require signers to be present in person to sign the document. This can be a significant obstacle, especially when dealing with international partners or when time is of the essence.
Overall, the differences between eSignatures and paper signatures emphasize the many benefits of eSignatures, including convenience, security and ease of use.
What is ROI?
ROI stands for “return on investment” — it is a financial metric that measures the profitability of an investment. ROI is calculated by dividing the net profit generated by an investment by the cost of that investment. The resulting number is expressed as a percentage or a ratio.
ROI is an important metric to consider when making investment decisions, including software. A high ROI indicates that an investment is profitable and can generate significant returns, while a low ROI suggests that an investment may not be worth the cost.
ROI of eSignatures
ROI can be used to evaluate the investment in eSignatures. By calculating the ROI of implementing eSignatures in their operations, businesses can determine whether the investment is worthwhile and how long it may take to recoup the cost.
Here’s how to calculate ROI for eSignatures:
- Determine the cost of implementing eSignatures: This includes the cost of any software, hardware or training required for implementation.
- Estimate the savings generated by eSignatures: This may include reduced printing, paper and mailing costs, as well as savings in time and labor.
- Calculate the net benefits: Subtract the total costs of implementing eSignatures from the estimated savings generated to arrive at the net benefits, divide the net benefits by the cost of implementing eSignatures then multiply by 100 to express the result as a percentage.
For example, let’s say a company spends $10,000 on eSignature software and training. Over the course of a year, they estimate that they will save $20,000 in printing, paper and mailing costs, as well as $15,000 in time and labor. The net benefits of implementing eSignatures would be $25,000 ($35,000 savings – $10,000 costs).
The ROI would be 250% (($25,000/$10,000) x 100).
ROI calculations should take into account both the financial and non-financial benefits of implementing eSignatures, such as increased productivity, improved customer satisfaction and enhanced regulatory compliance. By considering all the benefits, you can gain a more comprehensive view of the value of eSignatures and make informed investment decisions.
The Ways eSignatures Drive ROI
eSignatures can deliver significant returns on investment for businesses of all sizes. By streamlining document workflows and reducing costs, eSignatures can generate substantial financial (and non-financial) benefits for businesses. Here are the ways eSignatures drive ROI in 2023.
1. Improved Efficiency and Productivity
Improved efficiency can impact ROI by reducing the time and resources required to complete tasks, increasing productivity and enabling businesses to serve more customers and generate more revenue.
eSignatures improve document workflows by providing a safe and efficient way to sign and share documents electronically — they reduce document turnaround time by enabling real-time signature collection, automated routing and approvals and eliminating the need for physical printing, shipping and scanning of documents.
2. Increased Safety and Compliance
Security and compliance can impact ROI in several ways. Implementing safe and compliant eSignature solutions can prevent costly security breaches, reduce the risk of legal penalties or reputational damage and improve operational efficiency. In contrast, non-compliance with regulatory requirements or inadequate security measures can result in financial losses, lost productivity and customer distrust.
Compared to paper signatures, eSignatures improve document security by providing an encrypted and tamper-evident eSignature that verifies the signer’s identity and intent. They help businesses comply with regulations by offering robust audit trails, protected document storage, and electronic archiving capabilities that meet industry-specific legal requirements such as HIPAA.
3. Direct Cost Savings
Direct cost savings can impact ROI by reducing the expenses associated with manual processes, such as printing, mailing, storing and processing paper documents. By reducing costs and improving efficiency, businesses can achieve a positive ROI and free up resources to invest in growth opportunities or other strategic initiatives.
In direct savings terms, eSignatures can save businesses money by reducing paper, printing and shipping costs associated with traditional paper-based document workflows. They can also save time and reduce errors, leading to increased efficiency and productivity. Direct cost savings are the easiest to calculate and have the most transparent impact on ROI.
4. Better Customer Experiences
Better customer experiences can impact ROI by increasing customer satisfaction, loyalty and retention and generating repeat business and referrals.
eSignatures can improve the customer experience by providing a fast and convenient way to sign and complete transactions from anywhere, at any time and on any device. They can make the signing process more convenient for customers by eliminating the need for in-person meetings, reducing wait times, and offering real-time status updates.
5. Reduced Environmental Impact
Reduced environmental impact can influence ROI by improving brand reputation, reducing operational costs and promoting sustainability; this can enhance the company’s reputation as an environmentally conscious and responsible business, which can attract environmentally conscious customers, investors and partners.
eSignatures can help businesses reduce paper usage by enabling electronic document workflows that eliminate the need for physical paper-based processes. By reducing paper usage, businesses can reduce their carbon footprint, save resources and minimize waste.
6. Industry-Specific Business Advantages
eSignatures can benefit businesses in different industries by providing safe and efficient ways to sign and manage documents, reducing costs, improving compliance, and enhancing customer experience.
Examples of how eSignatures can benefit businesses in different industries include healthcare providers using eSignatures to expedite patient onboarding, banks using eSignatures to speed up loan processing and real estate firms using eSignatures to streamline the home-buying process.
7. Improved Tracking and Record-Keeping
Improved record-keeping can impact ROI by enhancing operational efficiency, reducing the risk of legal disputes and penalties and facilitating regulatory compliance.
eSignatures can improve document tracking and record-keeping by providing real-time visibility into the status of documents, automating audit trails and offering protected document storage and archiving. Businesses can use eSignatures to monitor the status of documents, track signatures and ensure that they are properly archived for future reference; this reduces the risk of errors, misplacement or loss.
8. More Flexibility and Accessibility
Flexibility and accessibility can impact ROI by improving productivity, reducing document processing times and enhancing customer satisfaction — each of which has a set of benefits that positively affect a company’s bottom line.
eSignatures can be used to facilitate remote work and flexible working arrangements by enabling employees to sign documents from anywhere and at any time, without the need for physical presence, which improves business agility and responsiveness to customer needs, enhances collaboration and productivity and reduces costs associated with physical office space and travel.
9. Greater Accuracy
Greater accuracy can impact ROI by reducing the cost and time associated with errors and rework; this can help to reduce the need for corrections, re-signing and reprocessing of documents which can generate cost savings and reduce processing times.
eSignatures can reduce errors and mistakes in the signing process by providing automated workflows that guide signers through the process, verifying the signer’s identity and detecting and preventing missing or incorrect signatures, initials or dates.
jSign Can Save You Money and Increase Your ROI
eSignatures have become an essential tool for businesses seeking to streamline their document workflows, improve security and compliance, reduce costs, enhance the customer experience and reduce their environmental impact. As you can see, replacing paper signing processes with eSigning can have a massive, positive impact on your ROI.
jSign is an innovative eSignature solution that offers a range of powerful features, including advanced security measures, flexible deployment options and customizable branding options. With jSign, you can enjoy a safe, reliable and user-friendly eSignature solution designed to meet your unique needs and requirements.Start your free trial of jSign today and experience the many benefits of eSignatures for yourself!