CRM ROI quiz.

For many years, the return on investment (ROI) from CRM implementations was disappointing -- at one point, analysts suggested that eight out of 10 projects failed to deliver on ROI promises. Today's reports are more optimistic, and many organizations claim that their CRM initiatives have exceeded ROI expectations. In any case, there's still a lot to learn about ROI for CRM. Take this quiz to test your knowledge of ROI, learn the definitions for various metrics used with ROI calculations, including internal rate of return (IRR) and net present value (NPV), and read expert advice on how to get ROI from your CRM projects.
   

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1. True or False? According to Gartner, businesses that take the time to build a business case and carefully measure ROI have better success with their CRM projects.
 
2. True or False? Most companies agree that when it comes to determining the potential ROI of CRM, intangible benefits are more significant than cost savings.
 
3. According to some experts, before embarking on a CRM project, organizations should define a formal business plan. Which of the following should not be assessed in the business plan?

4. When calculating ROI for a CRM upgrade, what timeframe is appropriate?

5. True or False? The calculation for ROI is: ROI = (benefits – investments)/investments * 100%

6. When implementing or upgrading a CRM system, what should your projected cost benefit be?

7. According to a Gartner survey of clients who have implemented (or are in the process of implementing) CRM, what percentage has performed an ROI analysis?

8. True or False? According to some experts, companies that have the most CRM success assign a CRM manager to steer the project. The CRM manager's role ends once the implementation ends.  

9. Internal rate of return (IRR) is the interest rate that makes net present value (NPV) of all cash flow equal zero. IRR is often used in capital budgeting. What is the benefit to measuring IRR?  

10. True or False? Between two CRM projects, if project X has a better NPV than project Y, project Y cannot have a better ROI than project X.  

 

This was first published in January 2008