Gartner Research

How to Justify CRM Spending and Boost Return on Investment

Published: 03 December 2004

ID: G00125245

Analyst(s): Scott Nelson

Summary

Only 5 percent of companies claimed return on investment from customer relationship management initiatives in 2003. To ensure such investments pay off, CRM managers must incorporate ROI models into their business cases.

Table Of Contents
  • Management Summary
  • Introduction
    • CRM ROI Disenchantment
    • Where Should CRM Funding Come From?
    • Creating a Master Plan for CRM
  • Understanding CRM TCO
    • TCO Defined
    • Components of a CRM TCO
    • Building the TCO
    • Lowering CRM TCO
  • Understanding Benefits and Metrics
    • Benefits
    • CRM Metrics
  • Calculating ROI for CRM
    • Financial Measurement Methodologies Used in CRM
    • Scenario-Based ROI Calculations
  • An ROI Calculation Example
    • MyCompany: TCO
  • Overseeing the CRM Investment Portfolio
    • Creating a Solid Business Case for CRM
    • Using the Business Case Throughout the CRM Project Life Cycle
  • Conclusion
  • Acronym Key

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