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									CRM Business Case Template

The purpose of this tool is to help you design a Business Case for an investment in a CRM
(customer relationship management) solution. A Business Case is a formal management
communication document that provides an opportunity overview, key success factors,
assumptions & decision-making criterion, business impact analysis, sensitivity analysis, risks,
contingency plans, and action-oriented recommendations.

How to Use this Template

Complete the following sections with your project team and/or stakeholders. Cut & paste
this information into a document that reflects your corporate image, and deliver your
Business Case to senior executives interested in sponsoring the project.

Title Page

                         [Insert Company Name or Logo]

                       Business Case – (insert project title)

                              [Insert Completion Date]

                       Completed By: [Insert Project Manager Name]
                       Completed For: [Insert Project Sponsor Name]
Table of Contents

1. Executive Summary                                      3
    1.1 What Problem does this CRM Business Case Solve?

2. Opportunity Overview & Key Success Factors             3
    2.1 Opportunity Overview
    2.2 Project Purpose
    2.3 Project Scope
    2.4 Project Schedule
    2.5 Key Success Factors

3. Assumptions & Decision-Making Criterion                7
    3.1 Assumptions
    3.2 Use-case Scenarios & Options
    3.3 Recommended Decision-Making Criterion
    3.4 Information Sources & Research Methodology

4. Business Impact Analysis                               8
    4.1 Cost/Benefit Analysis
    4.2 Qualitative/Intangible Business Benefits
    4.3 Required Resources for Implementation

5. Risks & Contingency Plans                              10
    5.1 Key Risks to Mitigate
    5.2 Contingency Plans

6. Recommendation                                         12
    6.1 Action Plan
1. Executive Summary

1.1 What Problem does this CRM Business Case Solve?
Provide a brief description of the problems that this CRM business case was designed to
solve.    Consider cost-savings, revenue growth, increased customer satisfaction, better
product management, higher retention, employee growth & development, or pain-points
for your organization.

        Customer satisfaction: de-centralized customer information is causing frustration for
         customers and staff where information is not accessible or can be easily lost
        Cost-effective marketing: inability to conduct e-mail marketing to targeted
         customers and prospects hindering opportunity for revenue
        Time savings with manual labor: staff is spending time on repetitive, manual tasks
         that can be automated
        Revenue growth opportunities: managers’ inability to see staff performance makes
         it difficult to manage and grow revenues
        Long sales cycle: sales are hindered due to difficulty in collaborating amongst staff
         on sales deals
        Productivity: outside sales staff are unproductive when they are on the road
         because they have to call back to the head office to get customer updates and
         manually produce sales field reports weekly

2. Opportunity Overview & Key Success Factors

2.1 Opportunity Overview
In this section, put a positive spin on the solution you are recommending. Document your
vision of the impact your solution will have on the organization. Write from each key
stakeholder perspective: senior management, sales, marketing, customer service, IT, finance,
and operations. For example:

        Senior Management: better visibility into sales, customers and staff performance
      Sales: greater ability to forecast sales accurately, monitor and coach staff based on
       performance and collaborate on complex deals
      Marketing: reduction in budget and greater ROI on customer marketing and lead
      Customer Service: improved customer satisfaction and loyalty, ability to measure
       staff performance and customer service levels
      IT: simple, affordable solution that enables us to keep our data in-house and
       integrate it with other applications (website, accounting)

2.2 Project Purpose
Provide a description of how this project DIRECTLY relates to business goals and objectives.
You need to obtain buy-in from your project sponsor, and projects that clearly fit
organizational goals are more likely to be supported.

2.3 Project Scope
Additionally, document what is in scope for this project and explicitly state what is not in
scope. If you are planning on a phased approach, provide a summary of what each phase
will look like from your perspective. Consider how many departments/stakeholders will be
involved; then, document them.

For example: CRM software typically entails centralizing of client data and processes for
staff in sales, marketing, customer service, and executives. Our project will be implemented
in phases, with staff training included in each phase.

Phase 1: Consolidation of client data and profiles from all sales staff current records (from
Outlook, Excel spreadsheets, paper-based old files). Information capture standards will be
implemented for handling of profile fields, notes, and documents. Staff will be provided
access to customer records with the software installed at their desks (or laptops) and on
mobile smartphone devices (where applicable).
Phase 2: Collaboration and scheduling: Staff will centralize collaboration on customer-
facing issues in the CRM system. To assign follow-up tasks (customer call-backs, etc…), staff
will utilize the manual and automated task assignment. To schedule meetings with
customers and other staff, the calendar will be used, including tracking which products are
being pitched in those meetings.

Phase 3: Sales opportunity management & Customer service case management: Sales
department and Customer service department will simultaneously start using their
respective modules to track sales and service cases. Sales management will map current
sales processes into the system, and train staff on utilizing the system to move prospects
through each phase of the sales cycle. Customer service management will log post-sales
calls in the system to track, assign and resolve issues.

Phase 4: Email marketing: The marketing department will be able to profile customers and
prospects, create target lists, and use built-in email marketing to market back to our list.
Marketing will determine a schedule of communications and promotions per target

Phase 5: Executive dashboards and reports: Reports will be created, based on management
needs to monitor customers, sales, and staff. Reports/dashboard KPIs may include:
Opportunity Pipeline, Win/Loss Analysis, Lead status, Case Assignments, Overdue Cases,
Email Marketing Response, and others.
2.4 Project Schedule
Following is a sample project schedule that you can customize further:

 Project Milestones                                        Deadline
 1. RFP Delivered to Vendors                               January 1, 2012

 2. RFP Question Period Ends                               February 15, 2012

 3. RFP Close Date                                         February 31, 2012

 4. Conduct Vendor Evaluations                             April 1, 2012

 5. Award Contract to Vendor                               April 30, 2012

 6. Phase 1 Deployment & Training                          May 31, 2012

 7. Phase 2 Deployment & Training                          June 30, 2012

 8. Phase 3 Deployment & Training                          August 20, 2012

 9. Phase 4 Deployment & Training                          September 30, 2012

 10. Phase 5 Deployment & Training                         October 31, 2012

2.5 Key Success Factors
Key Success Factors are the most important items that need to work for you to ensure
project success. Examples include: adequate budget & resources, skill sets, time to do the
project amongst other priorities, project sponsorship.

 Key Success Factors                                     Justification

 1. Budget                                               Budget is required for software,
                                                         consultation and training to ensure
                                                         success of the project and staff take-

 2. Sales, Marketing, Customer Service Management Buy-   Management buy-in is required to
 In                                                      ensure the system meets the needs
                                                         of the department and ensure staff
 3. Executive sponsorship                                   To ensure system and project is
                                                            aligned with corporate goals and to
                                                            communicate with staff

 4. Resources                                               Time will be required of
                                                            management for detailed business
                                                            analysis and sufficient IT resources
                                                            will need to be allocated on an
                                                            ongoing basis to ensure success

 5. Insert KSF #5                                           Why is this critical?

3. Assumptions & Decision-Making Criterion

3.1 Assumptions
List all the assumptions you made when creating this business case. Some examples of
assumptions include:        costs, savings, incremental returns, pricing, volume, or resource
requirements such as expected consulting costs.

3.2 Use-Case Scenarios & Options
Contrast and compare various options, such as “Do Nothing”, “Conduct a Pilot”, “Conduct
Full-scale Implementation”, “Build Internally”, or “Buy”.           This section should provide
assurance that the business will not fall apart should it be decided that moving to your
recommendation is not feasible. Your goal is to economically justify your investment to
generate returns.

3.3 Recommended Decision-Making Criterion
This section is useful for proposing the decision-making criterion that you believe a senior
executive should consider when making a decision. The idea is to make it very easy for
your sponsor to agree with your proposal, given that you have already completed the
majority of the required critical thinking.

Following is a prioritized list of proposed evaluation criterion:
      1. Revenue and customer benefits
      2. Cost-savings through productivity
      3. Management performance insight
      4. Time to deploy
      5. Cost
      6. Customer SLA from Vendor
      7. Integration with Existing systems
      8. Experience with our Industry

3.4 Information Sources & Research Methodology
Where did you go to learn more about this opportunity? Are your sources of information
credible? What process did you take to do the research? Some examples include: vendor
discussions, whitepapers, analyst firms, Google searching, conferences, peer-to-peer
networking, consultants.

4. Business Impact Analysis

This section will outline the costs and benefits of the proposed initiative. Both quantitative
and qualitative (intangible) benefits need to be documented here. Additionally, providing a
“High/Low” adds an element of sensitivity analysis, which provides both a conservative and
optimistic outlook for your proposed initiative.

4.1 Incremental Cost/Benefit Analysis
Determine the projected incremental costs/benefits over a 3-year period. Insert your cost
categories, a description of each, and a high/low estimate for each. Divide total benefits
by total costs and multiply by 100 to obtain a %. Complete this worksheet for each use-
case scenario, and/or project option.
                               Cost/Benefit Analysis Worksheet
Project Costs
Incremental Costs               Description                      High   Low

Software Licenses

Consultation & Implement



Total Costs

Project Benefits
Incremental Benefits

Time saved on                   Automated
administrative duties

Increased field staff           # Hours

Increased inside sales staff    # Calls

Increase in revenue             Increased win ratio

Decrease in sales cycle time

Increase in sales deal size,
customer lifetime value

Reduction in directing
marketing expenditures

Faster service response and
resolution time

Decrease in customer churn      Increase in loyalty

Total Benefits

                                              % Benefits/Costs
4.2 Qualitative/Intangible Business Benefits
What are the qualitative or intangible benefits that were not captured in the cost/benefit
analysis worksheet?   (Customer satisfaction, brand awareness)

       1. Improved customer relationships
       2. Time saved and greater visibility for all staff with closed-loop relationships and
          centralized information for sales, marketing and customer service
       3. Greater management visibility into operations & performance
       4. Insert Qualitative Benefit #4
       5. Insert Qualitative Benefit #5

4.3 Required Resources for Implementation
What are the required resources in terms of budget, staffing, consulting, or other
expenditures related to moving forward with this business case?

For example:
      Budget, per section 4.1
      Staff Resources: IT database administrator & business analyst – X hours/week
      Management in Sales, Marketing and Customer Service: commitment to cooperate
       with IT on business requirements, training and rolling-out to their staff

5. Risks & Contingency Plans

This section will outline the key risks that need to be mitigated and provide contingency
plans for each identified risk.   Risks include:   lack of end-user adoption, project over-
time/over-budget, technical risk, and senior management commitment.

5.1 Key Risks to Mitigate

       1. Lack of management commitment adoption
       2. Lack of end-user adoption
       3. Technical risk
       4. Insert Key Risk #4
       5. Insert Key Risk #5

5.2 Contingency Plans
What is the contingency plan for each of the preceding risks?

For example:
To ensure commitment of managers in sales, marketing and customer service departments,
there will be a virtual committee/team formed for customer relationship management
(CRM). This team will be led by X. His/her job will be to identify specific business
requirements for the system, ensure two-way communication with staff, identify training
requirements and measure benefits gained.

To ensure buy-in from staff, the committee will be responsible for establishing a
communication and change plan with a phased implementation.           Management will also
communicate upcoming changes with staff, highlighting the benefits of the system to staff
and customers. After each phase of implementation, the group will gather feedback from
the staff to incorporate updates or changes in the next phase

Technical risks will be mitigated by ensuring our current IT infrastructure is compatible with
the system, including e-mail, mobile devices, back-end systems (i.e. database, accounting,
inventory), etc.
6. Recommendation

What is your proposed course of action? Insert your recommendations here.

6.1 Action Plan

      1. Approve budget
      2. Approve staff resource allocation to project
      3. Approve formation of CRM management committee to proceed with managing
         and reporting on the progress of the project.
      4. Action Step #4
      5. Action Step #5

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