CRM: how to define ROI?

First of all, it is necessary to remember that method of calculation of an indicator of ROI differ depending on the industry. So, in some ROI projects it is simple to calculate. For example, at projects on implementation of call centers. In others it is significantly more difficult – for example, at implementation of CRM in retail for LE projects,Dmitry Demidov, the director of the department of CRM "NORBIT"[[Demidov Dmitry|]] told TAdviser.

Whether calculation is possible?

A number of respondents of TAdviser of experts indicated that high-quality calculation of ROI in relation to CRM to implementations is impracticable. Others, on the contrary, pointed to existence of own mathematical models for calculation of this parameter so the question to a certain extent is debatable.

For example,Mikhail Savitsky, the director of the business direction of support systems of business Microtest, says that in CRM projects it is rather precisely possible to count an account part (total cost of ownership, TCO). "And here to count even with big assumptions, increase in income from implementation is impossible. For example, who will surely tell that sales volume increased because the CRM system is implemented or just the company grows? Crisis in the country ended or implemented CRM?", - he noted.

Igor Pechenkin, the CEO FB Consult, also considers calculation of ROI in CRM projects a difficult task as, according to him, the creative activity of sales personnel which is difficult brought to any formal measurable criteria is exposed to automation.

Though, according to him, nevertheless there are certain techniques allowing to measure effect of implementation of the CRM system somehow: tie result to such indicators as "average bill" from the client, "an average term of life" of the client, a margin on the client, the flowability of the customer base and so on and to measure ROI depending on growth/falling of the specified indicators. "However, the structure of indicators can vary from the industry to the industry and also too many subjective factors are present at the estimated processes of the enterprise in the field of CRM. Therefore quantitative assessment of ROI in CRM projects can be accepted with a fair share of a stretch", - the head believes FB Consult.

The expert and the head of business applications of CROC companyMaxim Andreyev considers that calculation of ROI depends on Customer Relationship Management System type. "If to speak about "transaction" CRM, then it is impossible to calculate ROI, in my opinion, - it is investments into business infrastructure, into quality improvement of management. Nobody demands ROI from accounting automation. And here analytical CRM can quite give complete return of investments into the project for read months", - he explained. For example, intellectual segmentation of the customer base a telecom of the operator will allow to identify the clients losing loyalty and to create the "holding" offer focused on them

How to consider?

One of the companies which confirmed existence of own method of calculation of ROI - "BITS". To clients of "BITS" it is available parametrical model of calculation of investment soundness in an implementation project of "BIT:CRM". Within this model each enterprise can calculate effect, having entered limited number of parameters – number of the employees and heads working with CRM, their monetary motivation, revenue, profitability, number of regular and new clients, revenue on them for the period and so forth.

The model considers also compensation of employees and the half-received profit during the project, the cost of software, works, the equipment and other parameters. Even on the most obvious effects return of investments into "BIT:CRM" for small enterprises according to the pessimistic scenario exceeds 300%. For medium-sized and large enterprises the payback of implementation of BIT:CRM can be thousands of percent, told TAdviser in the company.

The Sitronics company called a question of calculation of ROI "difficult". Nevertheless, specialists of the company build the ROI models,Alexey Zorin, the leading architect of business solutions of CRM "Sitronics"[[Zorin Alexey|]] told. The factors which are potentially influencing processes of customer interaction and possible results achieved by their optimization are considered at the same time. "As a result of application of model we can receive the forecast of efficiency which is compared afterwards to really reached indicators", - Alexey Zorin commented.

According to him, the level of forecast accuracy will depend to a large extent both on a set of factors, and on the accepted assumptions. It gave increase in an average of "the life term" in the project of the client, increase in the average amount of purchase, increase in number of the won transactions, reduction of time of carrying out the transaction on a funnel of sales as an example of the factors of assessment used in work and so on.

BMicro noted that when calculating ROI it is possible to accent several main directions allowing further, to formulate individual indicators at implementation: a difference in labor costs of employees users before and after (to increase by the amount of salary); change of useful result of work of the user (the number of transactions, the serviced clients.); change of term of an execution of one order, customer service; comparison of selections of a customer feedback, statistics of failures before implementation.

Qualitative effect

If in money it is difficult to express effect of implementation of the CRM system, then to estimate qualitative effect of implementation quite perhaps, Mikhail Savitsky added. First, this increase in "secondary" sales, deduction of the current clients, increase in their loyalty. Secondly, it is an opportunity to arrange the customer base, to exclude from it doubles, to make it suitable for the analysis, to increase control of company management of sales. At last, it is an opportunity to control managers and not to lose a part of the customer base at dismissal any of them.