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CRM Cost-Benefit Analysis Overview

This document discusses the costs and benefits of customer relationship management (CRM) systems for organizations. It provides examples of benefits like improved sales performance, customer service, and decision making from CRM data. Costs of implementing CRM include software, training, and support costs. The document also presents examples of analyzing CRM costs and benefits for specific industries and companies. It evaluates how CRM can improve customer experience, marketing efforts, and business operations while enhancing customer loyalty.

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Amy Knight
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433 views16 pages

CRM Cost-Benefit Analysis Overview

This document discusses the costs and benefits of customer relationship management (CRM) systems for organizations. It provides examples of benefits like improved sales performance, customer service, and decision making from CRM data. Costs of implementing CRM include software, training, and support costs. The document also presents examples of analyzing CRM costs and benefits for specific industries and companies. It evaluates how CRM can improve customer experience, marketing efforts, and business operations while enhancing customer loyalty.

Uploaded by

Amy Knight
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

St. Dominic Road, Bandra (W), Mumbai-50.

GROUP 5
CRM:
A COST BENEFIT
ANALYSIS

GROUP MEMBERS
NAMES
CHAITANYA KULKARNI
LYNSTEL LAWRENCE
VINCY MACWAN
SHERYL JOHN
TIARRAH MARTINS
NEHA MENDON
JASON MENDONCA
VIVIAN MISQUITTA

ROLL NOS.
8128
8129
8130
8131
8132
8133
8134
8135
3

What Is CRM ???


Understand the customer

Retain the customer


Attract new customers
Increase Profitability
Decrease customer management
4

AREAS IN WHICH CRM


BENEFITS THE ORGANIZATION
Sales lead and client record management
Customer service case management
Results from Marketing Campaign
Performance and forecast reporting
Process definition and management
5

IMPROVEMENTS FROM CRM CAN


BE MEASURED AND QUANTIFIED
Sales Performance and Management:
Customer Service Operation and Management
Information Analysis for Decision Making:

CRM BENEFITS TO A CUSTOMER


Improved Customer Experience
Focused Marketing Efforts

Automated Analytics and Reporting


Better Co-ordination & Co-operation
More Administrative Support
7

COST OF CRM TO THE


ORGANISATION
Cost occurred by companies.
Percentage amount to be used for CRM.
Make the right offer at the right time to the right
customer.

Effect on net sales


Before CRM

With CRM

Offers

50,000,000

50,000,000

Conversion Rate

3.5%

3.5%

CRM Gain

0.0%

8 .0%

Conversion Rate

3.5%

3.8%

Sales

1,750,000

1,890,000

Average Sale

$57.15

$57.15

Total Sales $100,012,500


Cost of CRM

$0
Net Sale $100,012,500

$108,013,500
$9,500,00
$98,513,500
9

CRM costs in Banking & Insurance


What is the background ?

What are the challenges faced...?

What is the solution

10

Building customer loyalty in


business to business.
Let customers know what you are doing for them
See the potential in every customer
Remember special occasions
Be quick about it
Consider follow-up calls business development calls
11

How To Improve Customer Loyalty


& Generate More Referrals?
Stay in touch with your customers in a creative way that

creates a positive response.


Four different reasons why loyalty should be promoted:
Psychological;
Economic;
Technical/functional;
Contractual

How Social Media Is Changing Customer Loyalty Programs?

12

Project Arrow by India Post.


( Case Study )
Window to the world for aam aadmi
Aims at transformation of post offices creating a WAN

network.
Received pradhan mantri best civil service award in

Aug 2011.
13

Results and sustainability


Delivery of mail, speed post & money order on the

same day.
India post served 40 Cr. bank account holders.

Served 65 Cr. aam aadmis in last 2 yrs.


14

Conclusion
Cost-Benefit Analysis (CBA) estimates and totals up

the equivalent money value of the benefits and costs to


the community of projects to establish whether they
are worthwhile
All benefits and costs of a project should be measured
in terms of their equivalent money value.
Cost-benefit analysis is a logical way of making
decisions based upon the probable outcomes of various
courses of action.

15

16

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