Developing a ROI Argument for CRM
Developing a Return on Investment (ROI) case for CRM can be relatively straight forward. In our experience though the most common mistake that organisations make is they go looking for a CRM solution before they have fully evaluated the business problem, the potential costs savings and the potential for increased sales.
While every organisation has some common attributes they seldom sell, market, service and communicate in exactly the same manner, there is no generic formula and organisations need to spend time doing some real honest soul searching.
Prior to looking for solutions C2 advocates that organisations spend time analysing and articulating the business problems. By defining the problem the opportunities then present themselves. Improvement targets can be envisaged and these can be presented to senior management for early buy in. So the advice from C2 is:
- Articulate the problem first
- Define improvement targets
- Get early business buy in
Where to Look for Benefits?
Typical areas that yield business benefit can include:
- Improved sales conversion targets
- Customer retention and acquisition targets
- Customer satisfaction improvements
- Client self service time savings
- Improved customer data/knowledge
- Reduced administration effort
- Improved market research and business intelligence
Once an argument for change has been made, then the ROI case can advance by looking at solutions. Be sure though to do your research along the way and to factor the cost side of the argument based on fully defined requirements that is tailored for the business.
