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3 Ways GPS Fleet Tracking Delivers Measurable ROI to Your Business

3 Ways GPS Fleet Tracking Delivers Measurable ROI to Your Business

ClearPathGPS Fleet Tracking Solutions Will Help Your Company Cut Costs and Can Save You Thousands of Dollars

GPS Tracking Solutions: Qualitative and Quantitative Benefits

The right GPS fleet tracking solution will offer your business many benefits, both qualitative and quantitative. When you combine these benefits, they can add up to game-changing improvements for your company’s operations. On the qualitative side, here are a few of the biggest advantages: 

  • Using the ClearPathGPS solution can improve your customer satisfaction ratings
  • You’ll have peace of mind knowing you can quickly recover a stolen asset
  • ClearPathGPS’ data helps you monitor and improve driver behavior
  • ClearPathGPS offers you the freedom of no-contract, customizable plans

Some of our customers—Trim All Lawn Service, for example—also tell us that because ClearPathGPS gives them so much valuable data to analyze, they’ve improved their ability to bid and profit from new jobs.

Given the fierce competition and climbing costs in all service businesses today, GPS fleet tracking is really a must-have tool for the above reasons alone. But when you sign up with the right partner, you’ll also see your GPS solution contribute directly to your business’s bottom line every day, through hard-dollar savings. Here are a few examples of how the right GPS solution delivers measurable ROI.

1. Fuel Savings

According to Automotive Fleet magazine, fuel represents 60% of the average fleet’s overall operating costs. We’ll assume that’s roughly the same for your company. This means any opportunity you find to lower your fuel costs can save your business some real money.

Well, good news! Through a combination of tools in the ClearPathGPS system—to catch and reduce fuel-wasting behavior, help your drivers find fuel-friendly routes, and others—ClearPathGPS can help you substantially lower your fleet’s fuel bills.

In fact, using ClearPathGPS’ many tools to help you reduce fuel expenditures, you will lower your fuel costs by 20%. Here’s what this looks like.

How it works 

Let’s assume you have a fleet of 10 vehicles. Per-vehicle calculation:

  • 50 miles per day (a conservative estimate—some of our customers report 100+) 
  • 15 MPG
  • $2.85 per gallon
  • Monthly Savings (per truck): $38

Monthly fleet savings: $380

Annual fleet savings: $4,560

ClearPathGPS annual investment: $3,000 (at $25 per vehicle, per month) 

Annual ROI from ClearPathGPS (for fuel savings alone): $1,560 

2. Payroll Savings

First, the bad news. If you’re not using GPS or some other digital means of monitoring your field service technicians’ time on the job, there’s a good chance you’re overpaying for incorrect timecards. That’s not an opinion. The American Payroll Association’s research finds that 43% of hourly employees round up their timecards, exaggerate hours worked, and otherwise commit “time theft.”

And although it might not sound like a big deal—a few minutes here, one hour there—the APA also finds this can cost a business up to 7% of its gross annual payroll. Consider what that could mean for your business if you have 10 field service employees. Think about what you pay your average field tech per year, take 7% of that number, and multiply it by 10. That’s a huge hit to your company’s bottom line each year—one you can eliminate with the right GPS tracking solution.

So, again, any tool you can find to tell you exactly how much your techs are working—down to the minute, every day—can mean a serious benefit for your bottom line. And the good news is, the ClearPathGPS fleet tracking app can help you save an average of 1 hour per day in timecard padding.

How it works 

Let’s assume you have a staff of 10 field employees, each driving one of your company’s 10 vehicles. And we’ll make the conservative estimate that by monitoring your field staff through the ClearPathGPS app, your company can reduce timecard padding by 1 hour per day—not per employee, but across the entire staff.

Per-employee calculation:

  • $15 per hour hour
  • 40 hours per week
  • Monthly Savings: $300
  • Annual Savings: $3,600

Monthly fleet savings: $3,000

Annual fleet savings: $36,000

ClearPathGPS annual investment: $3,000 (at $25 per vehicle, per month) 

Annual ROI from ClearPathGPS (by reducing timecard padding): $33,000

3. Insurance savings

Your fleet’s insurance rates can also come down—sometimes significantly—when you implement GPS fleet tracking. Most auto insurers view commercial vehicles being monitored by their companies as lower risk for claims. Here are a few reasons:

  • A commercial vehicle with a GPS tracker is more likely to be recovered quickly if stolen.
  • A GPS tracking solution encourages safer driver behavior—because the employees driving these vehicles know their employers can see if they’re speeding, if they’re aggressively braking or accelerating, etc.
  • When employees know their employer can see if they’re taking the company truck on an unapproved trip, they’re less likely to do so. This also reduces the amount of time the truck is driven, which lowers the chance of theft, an accident, or damage to the vehicle.

In fact, according to Forbes, many commercial insurers will offer their customers discounts of 10% or more for equipping their vehicles with GPS. Here’s how that might translate into hard-dollar savings for your company.

Per-vehicle estimates:

  • Monthly insurance premium: $300
  • Monthly savings: $45 
  • Annual savings: $540

Monthly fleet savings: $2,250 (assuming no claims)

Annual Fleet Savings: $27,000 (assuming no claims)

ClearPathGPS annual investment: $15,000 ($25/vehicle/month; 20% insurance subsidies) 

Annual ROI from ClearPathGPS (by earning insurance discount): $12,000

Try Our ROI Calculator—and See How Much You Can Save

So, by deploying the right GPS fleet tracking service, you can improve your business operations with both qualitative benefits (better driver behavior, increased customer satisfaction, etc.)—as well as the hard-dollar benefits of lowering your payroll costs, fuel expenses, and insurance rates.

Of course, the numbers here are all estimates based on industry research and what we’ve heard from our own customers. But you can quickly get a sense of how much ClearPathGPS can save your business specifically. We work with our customers both in the evaluation stages and throughout our business relationship to help assess your specific needs, results, and ROI.

We’re happy to show you how, starting with our ROI calculator. Contact us to see how much we can help you save and grow.

At ClearPathGPS, we are focused on helping our customers improve their operations and bottomline. Our top-rated GPS fleet tracking solutions provide real-time data insights and tools needed to more effectively manage the vehicles, people, and assets businesses send into the field everyday. Can ClearPathGPS help your operations get better results? Let’s find out – request a demo or contact us today!