| Most people working on CRM projects know the | | | | Once you have calculated the costs and the problems |
| amount of money needed for the project but very | | | | at hand, you need to assess how implementation of |
| few can actually justify the returns on it or the | | | | CRM database system can alleviate those issues or |
| payback involved. | | | | bring overall expenses down. As an example, an |
| ROI Is Subjective | | | | organization could gain B number of customers when |
| One of the first issues to contend with is that no two | | | | they mitigate the call abandon ratio or will get C dollars |
| organizations will sell, market or provide customer | | | | in terms of savings when they manage inventory |
| service in the same manner. Given such a subjective | | | | more effectively and save D dollars when they get |
| scenario, how can companies begin to understand the | | | | skilled and experienced customer relationship |
| real truth about ROI on customer relationship | | | | representatives stay longer in their jobs. |
| management systems? The first point of reference | | | | Business Improvement |
| should be the calculation of the amount cost the | | | | Ultimately, the objective of any CRM system is to |
| organization when it does not have a CRM solution | | | | save dollars and enhance business processes within |
| implemented. | | | | an organization by means of better business |
| Knowing Pain Areas | | | | automation. If it is difficult for an organization to pinpoint |
| Since customer database software is essentially a tool | | | | exactly the three areas where the organization can |
| to resolve problems within an organization, any | | | | expect to see improvements, purchasing a CRM |
| company needs to pinpoint the exact pain areas within. | | | | business system is a big mistake. This would be similar |
| Calculation of the payback or ROI will entail resolution | | | | to buying a product without knowing what it is |
| of such pain areas by a CRM system implementation. | | | | supposed to fix! Hence, you should always assess the |
| It will serve to improve workflows and processes | | | | problem at hand initially and then seek the appropriate |
| within the organization by means of workflow | | | | customer CRM system useful to your purpose. |
| management software. Once you know the pain | | | | User Adoption |
| areas, you can compute the amount of dollars lost | | | | Even if you assess the issues and find out exactly |
| when you allow such problems to continue existing. | | | | how the customer management solution will resolve |
| This can include revenues lost when customers hang | | | | these pain points, the CRM system will fail to be useful |
| up at the first point of contact or when they prefer a | | | | unless everyone in the organization is open and |
| competitive organization for products and services or | | | | enthusiastic about using the system. Often, teams |
| when your organization buys more inventory than | | | | need to be trained regarding usage of the customer |
| what it needs etc. It could also be revenues lost when | | | | relationship management system and this can eat into |
| you ramp up newer representations of customer | | | | time spent on productive activities. By doing away with |
| management. | | | | training and adopting a more DIY approach where |
| Technology Assistance | | | | users self learn, organizations cut down on slack time. |