Wednesday, April 2, 2014
How to estimate your Return on Investment (ROI)?
Our software Sales Mantra will help you for managing the sales and service team in all the branches.
How do you estimate what your ROI on SalesMantra- CRM will be?
To determine the cost of not implementing CRM, put some numbers to the following:
1. How many existing accounts did your company lose in the past 12 months and what were the annual revenues?
2. How many new sales opportunities did your company lose in the past 12 months and what were they worth?
3. How much non-sales activity are your salespeople doing (writing reports, processing paperwork, implementing their own marketing programs, dealing with customer service issues and getting trained? Estimate an amount for this based on the salesperson closing X more accounts per year and add this to the "loss" column.
4. Estimate the revenue of the sales opportunities your company missed for timing or lack of follow up?
5. What are other departments are doing to support sales? How many calls a day are fielded by people in back office, service to answer questions for sales reps? Multiply the estimated time spent on these questions times your average hourly loaded wage rate for the affected department’s staff.
6. How much time is spent processing or adjusting orders, due to inaccurate or incomplete information? Multiply the estimated time spent on these questions times your average hourly loaded wage rate for the affected department’s staff.
7. What is the cost of servicing your most difficult customers? Multiply the time spent on these customers times your average hourly loaded wage rate for CSR’s. (If you can’t come up with any of these numbers, you definitely need CRM!) Are these customers worth it?
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