At first glance, this article’s headline may seem a bit strange. Most experts talk about the ROI of the CRM. But if you look carefully, you soon realize there are costs and benefits to every component.
Take the dashboard, for instance. When you put the most valuable information on the home screen, managers get instant access to it. That lifts the system’s ROI.
The data entry interface, though, tells the opposite story. Reps need to enter every activity into the system. The more time that takes, the more selling time that’s lost. That cuts into the system’s ROI.
Rollio is a disruptive interface that uses artificial intelligence to cut CRM data entry time down to almost zero. Click here to see how.
How much does standard CRM data entry cut into your ROI. Here’s how to figure it out.
Step 1: Determine the average value of a selling hour.
Value of a selling hour is one of those metrics that managers rarely explore. But every hour not spent selling is an hour that your rep is not driving revenue.
Here’s the formula we use:
[(Average sales quota per rep) – (Average compensation per rep)]
÷ [(work days per year) X (work hours per day) X (.32)[1]]
= Average value of a selling hour
Step 2: Determine the average time spent per day on CRM data entry.
There are many ways to arrive at this statistic:
- Use system logs to see how much time your average rep spends logged into Salesforce.com.
- Poll your reps.
- Use a published studies. Ringlead, for instance, reports that the average salesperson spends 4 hours per week updating his or her Salesforce CRM.[2]
Step 3: Multiply [Step 1 Findings] X [Step 2 Findings]
Now you have a very good idea of how much the time spent updating the CRM cuts into the system’s ROI.
Using benchmark data, Rollio calculates that one extra selling hour per week can mean an additional 900K per year in sales.
Put the other way, every hour not selling costs you $900,000, or cuts into the system’s ROI by $900K.
To see how we arrived at this figure, download Increasing Sales with Micro-Moments. Or better yet…
See how you can give your sales team an extra hour or more each week to sell. Click here for a free Rollio demonstration.
[1] Per a 2015 study by Docurated, sales reps only spend about 32% of their time selling. Adjust appropriately if you feel your
[2] https://www.ringlead.com/spending-much-time-updating-salesforce/#.WKHdAxiZNTY
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