Value Calculator: Total Customer Value and Cost of Ownership

Enhancements to the Valkre ROI Calculator continue with this update by providing a simple way to quantify the Total Customer Value and Total Cost of Ownership over multiple years. 

• Total Customer Value  shows the total value a customer should expect over many years
• Total Cost of Ownership shows the total investment a customer should  make over many years.

The existing ROI and Months to Payback metrics incorporate these calculations.

Getting Started 

For new ROI Calculator efforts, these metrics will be turned on by default.  For existing ROI Calculators, these metrics are not shown.  You can turn the Metrics on and off in the Value Calculator Settings Screen

Also in the Settings Screen, Users can optionally

• Change the name of the Metrics
• Change the order of the Metrics
• Change how many Years to model Total Customer Value and Total Cost of Ownership

Calculating Total Customer Value

By clicking into the Total Customer Value widget, a detailed view of Total Customer Value is available

Clicking 'Edit' on the above view brings you to screen where you can adjust how much of the Annualized Value should occur for each Value Driver By Year.

In the example above, the Value Driver 'Bed Availability' is expected to create 100% of the Annualized Value in Year 1 but no additional value after that.  For 'Device Costs', there is not expected to be any value in Year 1, but will ramp up value over time.

In addition, you can additional commentary on any assumptions that are being made.  Clicking the 'Back' button will bring back the chart.

Total Cost of Ownership

Working with Total Cost of Ownership is very similar.  By clicking in on the Total Cost of Ownership widget, a detailed chart shows the schedule of Investment over the years.

Clicking on the Edit button brings up a screen where you can add Investments to the model and flow out expected costs over the years.

In this example, an 'Installation' investment was added that is a one time fee occurring in Year 1.  In addition, there is a 'Subscription' fee that ramps up over time.

In addition, you can additional commentary on any assumptions that are being made.  Clicking the 'Back' button will bring back the chart.

ROI Update

With the changes to how Total Customer Value and Total Cost of Ownership is calculating, the ROI metrics has been updated accordingly.  Now when you click on the ROI Widget, a new visual that shows how the 'Return' in ROI is calculated.

Clicking Edit will show a more detailed schedule of how Customer Value and Cost of Ownership flows over the years.

Finally, all PDF and PPT outputs have been updated as well.  Enjoy!