What’s A CRM Worth

I recently finished developing an ROI tool specifically designed to evaluate the return on investment  of developing the right CRM solution for your organization. In this case I did it for a customer that had some specific revenue and cost saving goals in mind. The results were interesting. So, I though I’d relay the information to you.

My customer has a call center of about 50 inside sale people along with smaller teams for customer service and collections. He currently uses Salesforce.com as his CRM but in order to reach the objectives he has for his organization he needed to make changes to the process flow and capabilities of the tool.

His objectives are:

  1. Increase hourly revenue per agent.
  2. Increase the number of verticals he’s penetrating.
  3. Better evaluate the results of his marketing and prospecting plans.
  4. Increase the number of out bound daily call each agent makes.
  5. Increase the number of customers that pay at time of sale rather than opt for a net 30 invoice.
  6. Increase the number of referrals received monthly.
  7. Decrease bad debt.

The development we proposed for his Salesforce.com solution was able to impact all the objectives above in a fairly significant way. Even when estimating for extremely reasonable increases in revenue and just a 10% decrease in bad debt the ROI in the first year came out to $1.5 million.

The revenue goals were as follows:

  • Increase hourly revenue by 5%.  This represented the very doable goal of just one additional sale per week per agent on average. Our solution accomplishes this improving the process flows, providing a resource library and developing scripting solution for the agents.
  • Penetrating the number of verticals to increase revenue by 5%. The customer has hundreds of verticals that could be penetrated. To do so he needs to be able to track the effectiveness of the marketing into each vertical, the revenue generated out of each vertical and the cost effectiveness of the effort. A 5% increase represents penetrating on new vertical 6 months into the year. Again, very achievable.
  • Increase referral revenue by 5%. Using automatic follow-up emails and scripting specifically focused on referral generation were used to achieve this goal.

Increasing payment at time of sale and decreasing bad debt go hand in hand. We suggested imbedding payment methods into the process flow, using automated reminders that drive customers to paying the invoice and internal reminders to insure that customers in collections are contacted.

This is a very high level description of the project. What really interests me was the confirmation of the impact the right CRM solution can have on the health of the business. Being able to estimate that impact and then track it as your CRM solutions go live are a critical part to any project.

This is a very long-winded way of saying I’d be happy to share the ROI tool with anyone that’s interested. Because goals and objectives change from organization to organization there is some upfront adjustments that have to be made before using it. But, the basics are al there.

I’ll be at Dreamforce next week if anyone is interested in getting the tool or contact me at 623-396-6570 or ibellais@360vantage.com

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