Dollars and Sense: How to read your ROI report

Dollars and Sense: How to read your ROI report

What is ROI?

ROI stands for Return on Investment, in this case that refers to the value of materials returned, compared to the cost it took for them to be recovered by Unique. It is a measure of how effective Unique’s Gentle Nudge® is working for your library. Unique’s operating costs are guaranteed to be less than the value of materials recovered by our process, meaning that the process will at least be budget-neutral, but often far exceeds the amount spent on recovery.

In the private sector, investors usually aim for a 1:20 return on investment, meaning they make $1 in profit for every $20 they invest. Because libraries are not-for-profit, they need to make the most out of every dollar in the budget. Looking at this sample report, you can see that this library saw a 7:1 return on investment, meaning that they got $7 worth of materials back for every dollar spent on the material recovery process! It’s a small price to pay for books that would have otherwise been lost forever.

What does a good ROI mean for my library?

As stewards of public funds and assets, libraries are responsible for safeguarding materials and keeping them available for everyone to use. Using Gentle Nudge® means that your library is committed to fiscal responsibility as well as equal access for all patrons. It shows local government leadership and budget-makers that the library takes the obligation seriously, too.

DID YOU KNOW: that for every 4 patrons that are referred to Unique, they have materials that three patrons already have a hold on in the library?

That’s the ripple effect of materials. Odds are that overdue materials are in-demand materials, and Gentle Nudge® is the best option for getting them into the hands of the next patron.

What other stats are important?

Recovered materials are just one half of the benefits of Gentle Nudge®. On top of returned materials, the process also returns patrons to the library as well. These blocked patrons are likely to return to active users of the library, in fact we’ve found that up to 80% of those that have been referred to material recovery become active users again.

Sample Report

      • On this sample report from a library serving a large metropolitan population, you can see several columns and figures. This particular library collects fines, which is included in the report.
      • Cash- the amount of money collected in fines.
      • Material- the replacement cost of the recovered materials in the ILS.
      • Waives- materials and fees waived by the library. Libraries retain control to waive fees or materials for any reason on all referred accounts.
      • Total- the sum of the three columns of Cash, Material, and Waives.
      • Assets only- The sum of Material returned, and cash collected.
      • Invoice Amount- Unique’s fee for the Gentle Nudge® process for referred accounts.

Where do I find these reports?

For existing clients, navigate to the Material Recovery Portal on the Unique client web portal, or click here. Under “invoices” click on the Material Recovery Monthly Report for the month you want to look at.