Improving Tangible CRM ROI

Adroit Consulting is often asked how to calculate the Return on Investment (ROI) of a CRM initiative to either gauge the performance of an existing CRM initiative or to evaluate the investment in a new one.

Based on an evaluation of successful CRM initiatives, we have seen a wide range of operational improvements. We work with executives to estimate the potential of positively impacting any one of a number of key operational metrics (see table below) in order to develop an appropriate ROI model. While the list is NOT an exhaustive list of improvement opportunities, it provides executives an initial glimpse into the potential tangible operational impact.

CRM ROI = USER ADOPTION
While developing an appropriate ROI model is important, adoption is the critical pre-requisite to realizing the calculated CRM ROI and the related evaluation of performance. And adoption should not be confused with "usage." Regardless of the method (e.g. NPV, IRR) used to calculate a current or potential ROI, operational improvements are not material without high user adoption of the CRM tool. Adoption is the appropriate usage of the CRM system while supporting sales, marketing and service processes. If high adoption is achieved, the benefits can be captured from a wide range of improvements areas (review table above). If adoption is low, the cost of the CRM licenses and the organizational distraction can often overwhelm any accrued benefits.

Given the wide chasm between those two outcomes, one would expect more companies to focus on adoption, but sadly, many do not. Adroit Consulting has identified several approaches that help to drive high user adoption and a resulting positive ROI.

KEY WAYS TO DRIVE USER ADOPTION

1. Design processes with cross-functional representatives while avoiding the discussion of CRM tool capabilities during sessions to ensure the creation of an appropriate business blue print
2. Require the review and approval of the business blue print by executives through front line users before moving into the technical deployment phase
3. Limit configurations and customizations to increase speed to launch and usability; and to minimize system complexity and cost
4. Use business trainers, not IT/CRM tool specific trainers, to provide proper context on how to use the CRM system within the newly designed processes
5. Modify incentives to support the new processes and CRM tool usage across all participating functions (i.e. not just Sales)

Please contact Adroit Consulting at info@adroitconsulting.com to discuss how your company can improve performance of an existing CRM deployment or if you are just starting to evaluate a CRM initiative.

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Adroit helps companies with increasingly complex sales environments deploy effective business practices and utilize technology to improve performance. Learn more about how Adroit can help your organization.