Assessing the Value of your CRM Initiatives
Most CRM initiatives are started with much expectations and enthusiasm and perhaps with much funds allotted as well. But the key success factor is having a systematic approach to identify and assess levers for business value and impact for these implementations.
The objective in almost all cases is that of an increased revenue and competitive positioning that the CRM strategy would provide. This ambitious goal is definitely not misplaced but what is often overlooked is the need for a clear Value assessment focus from the beginning of the CRM Implementation. Most RoI exercises are done mid-way or post CRM implementation and result in a blame game on who is the cause behind a poor RoI. Although having the End to End Implementation plan is a core component of a successful CRM Initiative , equal if not more emphasis needs to be laid on Value Assessment and Change Management.
This post aims to outline a systematic approach to assessing the impact and value from a CRM initiative within an Organisation. Different phases that would need attention include Goal setting, Measurement, Evaluation and Monitoring of business value and impact. Involvement of all key stakeholder communities is crucial while doing this exercise.
Goal Setting: This phase would involve identifying key areas of impact expected by varied stakeholder communities from the CRM Implementation. Brainstorming and having a matrix of expectations with Priority and Probability assigned would be the intended output of this exercise.
Measurement: Methods and means to measure the areas of business and technical impact would need to be captured during this phase. This would act as a reference-able framework that the team can use all through the implementation cycle and post implementation for RoI assessment. Formulae and the mechanisms to measure the metrics would also be discussed and finalized in this phase.
Evaluation: A robust evaluation mechanism for the metrics and value levers is important to ensure successful and accurate Value Assessment. This phase aims in evaluating the metrics identified in the earlier phase and gauging the inclusion of these metrics at the right stages of the implementation cycle. Apart from the IT project , a major role is played by Processes and People oriented changes that needs to be effective to deliver the identified value and impact. Change Management Challenges and revision in probability and priority of set goals and inclusion of any revised goals can be included during this phase.
Monitoring: Assessing the value delivered and business impact at various key milestones from Process, People and Technology perspective of the CRM Initiative is key to take corrective measures at the right juncture with minimal loss. Monitoring the Value levers and Impact Drivers at milestones performs a Value Health Check of the CRM initiative. Triggering levers and drivers can control the Value and Impact parameters to deliver goals identified.
Active involvement of all key stakeholder communities is essential to convert the approach above to a successful Value Assessment and Change Management initiative.
I intend to write more on this in days to come but would love to hear your thoughts before proceeding.
