5. What is ROI and TCO? Return on Investment (ROI) Benefit - Cost = Revenue or Net Profit Total Cost of Ownership Payback Period (months) Total Cost Benefit (per month) Internal Rate Return (5 year) Benefit - Cost Cost (over 5 years) NPV (months) Benefit - Cost (discounted)
6. ROI for CRM Includes Revenue and Cost Analysis Sales Marketing Service & Support Close Rates Deal Size Productivity/Time Visibility & Forecasting Revenue per Rep Benefit Customer Satisfaction Customer Retention Upsell/Cross-sell Leads Conversion Rates Campaign ROI Revenue Contribution Revenue Contribution Total Revenue (return) Sales Metrics Marketing Metrics Service & Support Metrics Software Hardware Deployment and Testing Total Cost Ownership (investment) Configuration and Rollout Integration Maintenance/ Upgrades Revenue and cost metrics include those typically effected by salesforce.com IT Costs Costs Subscription/ License Support Services Resolution Time Case Efficiency Poor Quality Ongoing Management Administration Personnel Campaign Costs Non-Customer Time Operations & Administration Business Costs
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8. ROI Beyond CRM Recruiting Professional Services Finance/ Accounting Human Resources Project Management Key Metrics Key Metrics Productivity/ Time Savings Faster Proposal Time Expense Tracking Productivity/ Time Savings Accuracy Improved Recruiting Success Productivity/Time Savings Bug Tracking Case Management IT Management Key Metrics Faster Resolution Productivity/Time Savings Custom Applications Discounting Approval Key Business Metrics SOX Compliance Reduced approval costs by 75% Site Survey Google Mash-up 25% Reduction in Site Survey Cost Change Mgmt Reduce Manual Process Automated Approvals + 38,000 Other Custom Objects and Applications Reduced Cost of Managing Desktop Apps IT Costs Key Metrics
19. Polycom UCC Delivers Real Results Improved Day-to-day Efficiency, Effectiveness “ Enables the company to respond very quickly to changing customer preferences and buying trends” Virtual Teams Get Product to Market Faster “ Several months savings on a new drug development cycle which can mean potential sales of $1M per day” Increased Individual Productivity “ Connect 130 sites for a single meeting, savings of $2.5 million to date in enhanced productivity” “ While you can’t always replace an initial handshake with a video call, many a deal has been closed over video at Bear Stearns” Virtual Sales Calls Increase Revenue “ Travel savings amount to over $130,000 per month” Improved communications reduce expenses
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