WinningKPI - CRM - KPI for Measuring of Total CRM Cost posted in category CRM KPI details: This indicator is for measuring the total CRM cost for the company, in a given time period.
This is calculated by adding all costs related to CRM (cost of the system, maintenance costs, FTE effort etc.), in a given time period. The cost may vary from period to period, depending on strategies, one off costs (e.g. acquiring a new system) etc.
This KPI is important in order to measure the effort, in this case in terms of cost, that the company is making for managing customer relationships. This can be compared against competition (for measurable comparisons, would be preferable to compare against companies in the same market and same size).
The total cost can be compared against allocated budget (have we spent more/less than planned?), budget for previous years, returns, sales performance, customer loyalty etc.
For example, if a company increases the budget by 20%, they would want to measure the other factors affected by this (sales performance, customer retention etc.) and identify whether the increase in the CRM budget has brought increase in other desired factors.
Formula:
Sum of all CRM costs
KPI Unit: money
KPI Time Frame: update annually Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
Most likely the total cost of CRM will be broken down into the following components:
1. Total CRM Software costs which consists of : purchasing the licence and maintaining the software (space, electricity, updates)
2. Professional Service Costs (this includes a variety of costs from internal resources such as staff to data import, software integration etc.)
3. Support costs (administrator, technical support, help desk etc)
Oana Boteanu | + | October 1, 2012 at 5:38 pm
×
Have something to add? Have some more thoughts? Help others and earn 5 credits!
×
Sign in to comment Please, register (there is a button 'Become a member of WinningKPI community') in the right sidebar or sign in to leave comments. It is free and more - you will have scores for each comment you post.
Articles in CRM category:Relevant articles:
|
Manage your KPIs with BSC Designer software