Payback Per Pound

"Oxford University economist Daniel Susskind last year estimated that better train wi-fi could generate £376 million a year in productivity “savings”. Overlaying the industry costs of how much the exchequer would need to spend to fix on-train internet, the return on investment comes out at £49.70 for every £1 spent — or so claim those who specialise in the provision of onboard wi-fi. Even accounting for generous embellishments, this is a heck of a lot better than many other government projects. The return on investment for the Hinkley Point C nuclear project is about £8 for the cost of every quid."

From London's frustrated Times, 23 August 2025 [sub'n req'd]. That punchline reference point by the way, is reported by the English press as currently the single most expensive building project on earth. Helped by Big Carl no less, the world's largest crane. Even if panicked hyperbole, its soaring price tag for seemingly diminishing returns is without doubt a national disgrace.

While presenting such numbers is enjoyed, there's a fair few issues with them. Here's but three.

In a broad sense, as I blogged almost simultaneously, 'nobody buys efficiency'. Rendering the stated productivity gain potentially nebulous.

Then there's the detail. A fully fifty-times return. Yes, 50x. Wow, yes please, sign me up! Despite given the health warning of vested interest promotion that's certainly a head-turner. So incredible a figure though that it risks floating through the heads of all pitched as incomprehensible. After all, when have you ever experienced such a return on any project in the past?

Finally, how can you attribute any improvement directly to what you sell? That means understanding said improvement(s), broken down into component parts, which map solely onto what we unleash.

Here's an example.

I offer a virtual meeting aid suite. In our new-trad manner the app costs whatever per user per month. Attendees using it are more productive, I say. They get more done in allotted time. They finish meetings earlier. They suffer less re-work. They have happier clients. They reap higher quality output.

What starts adding up in the column alongside each $ spent on my app?

Shorter lag between video meetings? Less time collectively spent in them? Extra ones allowed to fill the new empty diary space? Speedier project completion times? The higher revenue they enable you to freshly secure (and keep)?

In accounting terms, good luck reconciling the outgoings with expense.

Yet we can hazard an educated guess. With our prospect's help.

Imagine sharing with them that Britain's next nuclear power station is set to return £8 for every £1. Then that a nationwide train wifi project could yield six-times that, at £50 for each pound spent.

Where among those might our project sit?

Giving us a starting place that moves us out the sidings.