Some CRM successes: examples of high ROI

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By: Wise Marketer Staff |

Posted on April 11, 2002

Some CRM successes: examples of high ROI

It is good to be able to report some of the success stories of CRM - backed by figures from the companies concerned. Some companies report enviable returns on their investment.

According to Oracle, its E-Business Suite is delivering a measurable return on investment to its customers. The suite enables companies to manage key business processes, including CRM, human resources, manufacturing, marketing, order management and supply chain management, from one global system.  It can be either be deployed traditionally installing the applications on the customer's database and servers, or as an outsourced service, where the applications are delivered as an online service, accessible from a desktop, and hosted by Oracle at the customer's site or another location.

John I Haas John I. Haas, domestic hops grower and producer of hops products, replaced disparate legacy systems in its US operations with Oracle's E-Business Suite Outsourcing, and reduced the cost of running its Oracle applications by 20% and achieved a return on investment of 83%. Across six regional sites, the integrated e-business applications run off a single database, providing immediate access to customer orders, sales status and inventory. After comparing what it would cost to maintain the application internally with the cost of outsourcing it, Haas opted for outsourcing, which has also freed up internal IS staff to focus on improving core business systems.

Commercial Net Lease Realty Commercial Net Lease Realty, an equity real estate investment trust that specialises in leasing retail properties to clients including Barnes & Noble, Eckerd Drug Stores and OfficeMax, also uses the E-Business Suite Outsourcing. The company says that the cost of implementing the system, compared with building it in-house, will yield estimated three year cost savings of $2,041,668 - an ROI of 136% and a projected reduction of invoicing time by 50-75%. Two years into the application CNLR is well on its way to achieving this goal. The company has eliminated the need to manually enter accounting transactions into different systems, which has increased employee productivity by 50%, and has decreased its month-end close cycle by weeks. Outsourcing has reduced CNLR's IT budget by 84%.

Other winners Other companies to achieve significant return on investments include:·  Ametek has saved nearly US$600,000 and anticipates saving millions more.·  Cap Gemini Ernst & Young (UK and Ireland) cut closing costs by 7%, invoice issue time by 33%, and people equivalents involved in month end closing by 8%.·  Gevity HR has doubled staff productivity in 18 months, resulting in US$3m savings in personnel costs.·  Hewlett Packard estimated that it saved US$19m in annual opportunity costs due to sales productivity improvements achieved by streamlined sales forecasting and reporting.·  Hudson Bay Company reduced employee expense reimbursement time by 80% and anticipates 100% ROI within two years of completing initiatives.

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