When replying to an RFP, I used to ask for a statement of the business case in order to supply more accurate, customized data. Why did I stop? Because I never got an answer. It seems that many companies interested in CRM tend to look for the CRM product which has the most functions for the money the company intends to spend. That this completely disregards the costs of customization is a basis for a later post, here the question is, “what should a business case statement contain?”.

Two groups can benefit from the introduction or replacement of a CRM solution, customers and users. Users can gain by increased personal and team efficiency, while customers should benefit by improved and smarter service, leading to reduced costs in the first case and higher sales in the second.

It is never easy to quantify the benefits, but not impossible. In the case of users, the possible benefits differ according to the user role.

Sales person

A good sales person will have organized his/her work with his own methods or tools. Do not look for monetary benefits in this area.

Sales Teams and Sales Channels

Whereas sales persons can organize their own work, they often are not good at sharing information with other team members. By improving the information flow within a team, selling time can be increased. The saving will depend on the specific situation, but could well be around 10%. Time saved does not always result in more sales activity, so this needs to be analyzed.

Marketing

Major savings can be made by reducing the effort required for serial letter or e-mail campaigns. This can lead to time savings of up to 25% leaving capacity for other tasks or for more intensive campaign work

Management

A well set-up CRM system will allow managers to analyze and guide sales activities and will provide data for strategic planning. Managers must estimate the worth of information for their individual situation.

Customers

Customers should experience higher service levels after introduction of a CRM System leading to higher satisfaction. Sales income is dependent on a number of factors so the effect of CRM activities on turnover cannot be directly measured. Customer satisfaction levels should be measured before and after the introduction of a CRM System. A more satisfied customer may or may not purchase more, but an estimate should be made on the basis of historical information.

Tags: Business Case. ROI, crm