Struggling to measure your return on investment (ROI) has been one of big problems with CRM implementations over the years. But one organisation has managed it, chalking up an ROI of 8,732%!
The Colorado Department of Revenue (Colorado DOR) has won Nucleus Research's 2008 Technology ROI Award for producing this figure from its RightNow implementation which was deployed to provide self-service research to taxpayers, reduce call centre and e-mail volumes, and improve the accuracy and consistency of information provided to the public.
Nucleus calculated the costs of software and personnel over a 3-year period to quantify the department's total investment in RightNow. Direct benefits calculated consisted of avoided new hires for the call center. This savings was quantified based on the assumption that a small percentage of website page views would have translated into calls to the call centre if the knowledge base was not available. The calculation was made using the average time of a call today and the average annual fully loaded cost of a call centre employee.
The implementation arose after the DOR found it difficult during the tax filing season to handle the spike cost effectively in inquiries from the taxpayer base it serves. Although call volumes can spike from approximately 3,000 calls per week to more than 7,700 calls per week during tax season, the organisation is able to hire fewer than a dozen additional tax experts to handle calls and emails.
The department's web site averages more than one million hits each year, and it says that 90% of site visitors are able to quickly find answers to questions online, without having to contact the department. As a result, call centre and email volumes have been reduced by 45 percent, saving the department more than $5 million.
Nucleus says that the key benefits from the solution include “reduced call centre costs. By using the knowledge base to divert inquiries away from the call centre and e-mail, the Colorado DOR avoided spending additional money on temporary workers and reassigning its staff and tax-trained subject matter experts to the call centre during the tax season."