Back in black: understanding the financial impact of CRM.

Customer Interaction SolutionsVol. 21 Nbr. 5, November 2002

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Summary


Customer Relationship Management

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Extract


Back in black: understanding the financial impact of CRM.

A great deal of discussion is taking place regarding customer relationship management (CRM) system initiatives and their financial viability or ROI. There seems to be widespread confusion about the financial impact of these projects on revenue and operating costs.

Most companies that purchase CRM software and embark on these enterprise initiatives lack internal resources that understand enough about the industry, software and the companies' businesses to do the ROI analysis, so the job of completing this critical management function falls to the CRM vendors themselves, or their consultant partners.

Most ROI analyses done by software vendors or consultants are grossly inaccurate and hopelessly optimistic. The results are more wishful thinking and ...

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