Contact
Suite 1A, Carver’s Warehouse
77 Dale St
Manchester
M1 2HG
sales.uk@next-tech.com
Telephone: +44 33 02 32 01 30
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Never before has the ability to track costs, time and resources been so vital for construction industry. Companies that use modern business systems often experience a marked improvement in their ability to optimise, adapt and scale. By digitizing and automating many of the daily processes, companies can focus more on the construction itself and less on paperwork.
We wanted to quantify the extent of Next’s value to our customers. To find out, we are in the process of carrying out an extensive study together with an external partner where, through both a large-scale survey and an in-depth analysis of our customers’ behaviour, we try to quantify the value Next creates. The early results look very positive; for an average user, Next often generates 9-30x returns annually, relative to cost. This means that a customer who pays £6,000 per year for Next creates an internal value corresponding to more than £52,000 per year. So where does the value come from?
Quantified value of Next in relation to cost.
Efficiency, cost savings and risk minimisation
Next contributes strongly to increased efficiency, cost savings and risk minimization for our customers. Among other things, we see that our customers spend less time on non-value-creating activities as a result of smoother and automated flows, which means that you can execute on more projects and achieve even greater growth. In practice, a field worker saves an average of up to 2 hours per week, a project manager up to 3 hours per week and an administrator 4 hours per week if they use Next.
Furthermore, Next enables more efficient invoicing that reduces the time period from when the work is done until the invoice is paid. This means that Next’s customers free up capital and reduce capital costs (not acting as a bank for the customers). This means that an example customer with ~£11m turnover per year who manages to shorten the time from the work being completed until the invoice is paid by an average of ~10 days can save ~£13,000 per year by using Next. In addition, they can take on more and bigger projects without having to worry about liquidity problems.
Increased growth and profitability
When we look at customers compared to the rest of the industry average, we see big differences in growth rate. An average Next customer grows by approx. 10% per year compared to industry peers’ average growth of 6%. This means that a company with a turnover of £3m today will have a turnover of more than £6m in 5 years if they use Next, compared to ~£4m for an industry colleague with other or no business system.
Next’s customer growth compared to industry peers with other or no business systems.
The rapid growth is driven by several factors. Among other things, Next enables faster and more reliable tenders (from 3 weeks for a tender to 2 days). This, combined with the fact that each employee has the capacity to handle more projects as a result of the time savings Next makes possible, means that the number of projects for an average customer increases by approx. 10% per year. At the same time, the system enables our customers to see an annual increase in revenue from variation orders by ~25% – driven by an increased number of reported variation orders by 10%, as well as an increase in average value of 14% annually
Finally, Next enables significantly improved cost estimation through both budgeting and forecasting tools. This both enables our customers to win more projects through more accurate quotations, but also significantly reduces project risk through better control over costs.
Grow with us
At Next, we constantly continue to invest in further improving our products and services to ensure that even more value is created for our customers. With the insights from this study, we will be able to continue to be targeted in our investments and development efforts going forward!
Do you want to get even more value out of Next and get help in achieving equivalent results? Contact us here if you are an existing customer or book a demo if you want to see more of our project tool.