CRM Business Case Template

1. CRM Business Case Template CRM Business Case TemplatePurposeThe 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 managementcommunication 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 TemplateComplete the following sections with your project team and/or stakeholders. Cut & pastethis information into a document that reflects your corporate image, and deliver yourBusiness 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]

2. Table of Contents1. 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 Factors3. 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 Methodology4. Business Impact Analysis 8 4.1 Cost/Benefit Analysis 4.2 Qualitative/Intangible Business Benefits 4.3 Required Resources for Implementation5. Risks & Contingency Plans 10 5.1 Key Risks to Mitigate 5.2 Contingency Plans6. Recommendation 12 6.1 Action Plan Table of Contents1. 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 Factors3. 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 Methodology4. Business Impact Analysis 8 4.1 Cost/Benefit Analysis 4.2 Qualitative/Intangible Business Benefits 4.3 Required Resources for Implementation5. Risks & Contingency Plans 10 5.1 Key Risks to Mitigate 5.2 Contingency Plans6. Recommendation 12 6.1 Action Plan

3. 1. Executive Summary1.1 What Problem does this CRM Business Case Solve?Provide a brief description of the problems that this CRM business case was designed tosolve. Consider cost-savings, revenue growth, increased customer satisfaction, betterproduct management, higher retention, employee growth & development, or pain-pointsfor 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 weekly2. Opportunity Overview & Key Success Factors2.1 Opportunity OverviewIn this section, put a positive spin on the solution you are recommending. Document yourvision of the impact your solution will have on the organization. Write from each keystakeholder perspective: senior management, sales, marketing, customer service, IT, finance,and operations. For example:  Senior Management: better visibility into sales, customers and staff performance 1. Executive Summary1.1 What Problem does this CRM Business Case Solve?Provide a brief description of the problems that this CRM business case was designed tosolve. Consider cost-savings, revenue growth, increased customer satisfaction, betterproduct management, higher retention, employee growth & development, or pain-pointsfor 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 weekly2. Opportunity Overview & Key Success Factors2.1 Opportunity OverviewIn this section, put a positive spin on the solution you are recommending. Document yourvision of the impact your solution will have on the organization. Write from each keystakeholder perspective: senior management, sales, marketing, customer service, IT, finance,and operations. For example:  Senior Management: better visibility into sales, customers and staff performance

4.  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 nurturing  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 PurposeProvide 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 fitorganizational goals are more likely to be supported.2.3 Project ScopeAdditionally, document what is in scope for this project and explicitly state what is not inscope. If you are planning on a phased approach, provide a summary of what each phasewill look like from your perspective. Consider how many departments/stakeholders will beinvolved; then, document them.For example: CRM software typically entails centralizing of client data and processes forstaff in sales, marketing, customer service, and executives. Our project will be implementedin phases, with staff training included in each phase.Phase 1: Consolidation of client data and profiles from all sales staff current records (fromOutlook, Excel spreadsheets, paper-based old files). Information capture standards will beimplemented for handling of profile fields, notes, and documents. Staff will be providedaccess to customer records with the software installed at their desks (or laptops) and onmobile smartphone devices (where applicable).  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 nurturing  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 PurposeProvide 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 fitorganizational goals are more likely to be supported.2.3 Project ScopeAdditionally, document what is in scope for this project and explicitly state what is not inscope. If you are planning on a phased approach, provide a summary of what each phasewill look like from your perspective. Consider how many departments/stakeholders will beinvolved; then, document them.For example: CRM software typically entails centralizing of client data and processes forstaff in sales, marketing, customer service, and executives. Our project will be implementedin phases, with staff training included in each phase.Phase 1: Consolidation of client data and profiles from all sales staff current records (fromOutlook, Excel spreadsheets, paper-based old files). Information capture standards will beimplemented for handling of profile fields, notes, and documents. Staff will be providedaccess to customer records with the software installed at their desks (or laptops) and onmobile smartphone devices (where applicable).

5. 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…), staffwill utilize the manual and automated task assignment. To schedule meetings withcustomers and other staff, the calendar will be used, including tracking which products arebeing pitched in those meetings.Phase 3: Sales opportunity management & Customer service case management: Salesdepartment and Customer service department will simultaneously start using theirrespective modules to track sales and service cases. Sales management will map currentsales processes into the system, and train staff on utilizing the system to move prospectsthrough each phase of the sales cycle. Customer service management will log post-salescalls in the system to track, assign and resolve issues.Phase 4: Email marketing: The marketing department will be able to profile customers andprospects, 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 targetsegment.Phase 5: Executive dashboards and reports: Reports will be created, based on managementneeds 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. 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…), staffwill utilize the manual and automated task assignment. To schedule meetings withcustomers and other staff, the calendar will be used, including tracking which products arebeing pitched in those meetings.Phase 3: Sales opportunity management & Customer service case management: Salesdepartment and Customer service department will simultaneously start using theirrespective modules to track sales and service cases. Sales management will map currentsales processes into the system, and train staff on utilizing the system to move prospectsthrough each phase of the sales cycle. Customer service management will log post-salescalls in the system to track, assign and resolve issues.Phase 4: Email marketing: The marketing department will be able to profile customers andprospects, 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 targetsegment.Phase 5: Executive dashboards and reports: Reports will be created, based on managementneeds 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.

6. 2.4 Project ScheduleFollowing 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, 20122.5 Key Success FactorsKey Success Factors are the most important items that need to work for you to ensureproject success. Examples include: adequate budget & resources, skill sets, time to do theproject 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- up 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 take-up 2.4 Project ScheduleFollowing 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, 20122.5 Key Success FactorsKey Success Factors are the most important items that need to work for you to ensureproject success. Examples include: adequate budget & resources, skill sets, time to do theproject 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- up 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 take-up

7. 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 Criterion3.1 AssumptionsList all the assumptions you made when creating this business case. Some examples ofassumptions include: costs, savings, incremental returns, pricing, volume, or resourcerequirements such as expected consulting costs.3.2 Use-Case Scenarios & OptionsContrast and compare various options, such as “Do Nothing”, “Conduct a Pilot”, “ConductFull-scale Implementation”, “Build Internally”, or “Buy”. This section should provideassurance that the business will not fall apart should it be decided that moving to yourrecommendation is not feasible. Your goal is to economically justify your investment togenerate returns.3.3 Recommended Decision-Making CriterionThis section is useful for proposing the decision-making criterion that you believe a seniorexecutive should consider when making a decision. The idea is to make it very easy foryour sponsor to agree with your proposal, given that you have already completed themajority of the required critical thinking.Following is a prioritized list of proposed evaluation criterion: 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 Criterion3.1 AssumptionsList all the assumptions you made when creating this business case. Some examples ofassumptions include: costs, savings, incremental returns, pricing, volume, or resourcerequirements such as expected consulting costs.3.2 Use-Case Scenarios & OptionsContrast and compare various options, such as “Do Nothing”, “Conduct a Pilot”, “ConductFull-scale Implementation”, “Build Internally”, or “Buy”. This section should provideassurance that the business will not fall apart should it be decided that moving to yourrecommendation is not feasible. Your goal is to economically justify your investment togenerate returns.3.3 Recommended Decision-Making CriterionThis section is useful for proposing the decision-making criterion that you believe a seniorexecutive should consider when making a decision. The idea is to make it very easy foryour sponsor to agree with your proposal, given that you have already completed themajority of the required critical thinking.Following is a prioritized list of proposed evaluation criterion:

8. 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 Industry3.4 Information Sources & Research MethodologyWhere did you go to learn more about this opportunity? Are your sources of informationcredible? What process did you take to do the research? Some examples include: vendordiscussions, whitepapers, analyst firms, Google searching, conferences, peer-to-peernetworking, consultants.4. Business Impact AnalysisThis section will outline the costs and benefits of the proposed initiative. Both quantitativeand qualitative (intangible) benefits need to be documented here. Additionally, providing a“High/Low” adds an element of sensitivity analysis, which provides both a conservative andoptimistic outlook for your proposed initiative.4.1 Incremental Cost/Benefit AnalysisDetermine the projected incremental costs/benefits over a 3-year period. Insert your costcategories, a description of each, and a high/low estimate for each. Divide total benefitsby total costs and multiply by 100 to obtain a %. Complete this worksheet for each use-case scenario, and/or project option. 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 Industry3.4 Information Sources & Research MethodologyWhere did you go to learn more about this opportunity? Are your sources of informationcredible? What process did you take to do the research? Some examples include: vendordiscussions, whitepapers, analyst firms, Google searching, conferences, peer-to-peernetworking, consultants.4. Business Impact AnalysisThis section will outline the costs and benefits of the proposed initiative. Both quantitativeand qualitative (intangible) benefits need to be documented here. Additionally, providing a“High/Low” adds an element of sensitivity analysis, which provides both a conservative andoptimistic outlook for your proposed initiative.4.1 Incremental Cost/Benefit AnalysisDetermine the projected incremental costs/benefits over a 3-year period. Insert your costcategories, a description of each, and a high/low estimate for each. Divide total benefitsby total costs and multiply by 100 to obtain a %. Complete this worksheet for each use-case scenario, and/or project option.

9. Cost/Benefit Analysis WorksheetProject CostsIncremental Costs Description High LowSoftware LicensesConsultation & ImplementMaintenanceTrainingTotal CostsProject BenefitsIncremental BenefitsTime saved on Automatedadministrative dutiesIncreased field staff # HoursproductivityIncreased inside sales staff # CallsproductivityIncrease in revenue Increased win ratioDecrease in sales cycle timeIncrease in sales deal size,customer lifetime valueReduction in directingmarketing expendituresFaster service response andresolution timeDecrease in customer churn Increase in loyaltyTotal Benefits % Benefits/Costs Cost/Benefit Analysis WorksheetProject CostsIncremental Costs Description High LowSoftware LicensesConsultation & ImplementMaintenanceTrainingTotal CostsProject BenefitsIncremental BenefitsTime saved on Automatedadministrative dutiesIncreased field staff # HoursproductivityIncreased inside sales staff # CallsproductivityIncrease in revenue Increased win ratioDecrease in sales cycle timeIncrease in sales deal size,customer lifetime valueReduction in directingmarketing expendituresFaster service response andresolution timeDecrease in customer churn Increase in loyaltyTotal Benefits % Benefits/Costs

10. . 4.2 Qualitative/Intangible Business BenefitsWhat are the qualitative or intangible benefits that were not captured in the cost/benefitanalysis 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 #54.3 Required Resources for ImplementationWhat are the required resources in terms of budget, staffing, consulting, or otherexpenditures 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 staff5. Risks & Contingency PlansThis section will outline the key risks that need to be mitigated and provide contingencyplans 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

11. . 3. Technical risk 4. Insert Key Risk #4 5. Insert Key Risk #55.2 Contingency PlansWhat 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 businessrequirements for the system, ensure two-way communication with staff, identify trainingrequirements and measure benefits gained.To ensure buy-in from staff, the committee will be responsible for establishing acommunication and change plan with a phased implementation. Management will alsocommunicate upcoming changes with staff, highlighting the benefits of the system to staffand customers. After each phase of implementation, the group will gather feedback fromthe staff to incorporate updates or changes in the next phaseTechnical risks will be mitigated by ensuring our current IT infrastructure is compatible withthe system, including e-mail, mobile devices, back-end systems (i.e. database, accounting,inventory), etc.

12. . 6. RecommendationWhat 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