1. develop a budget that takes into account an analysis
of 4 critical areas:
1. PAYOFF. You need to know exactly how your
CRM system is going to generate ROI. This will help
you focus your project on the right areas. By
knowing how you expect payoff to be achieved, you
can plan to achieve it.
2 RISK. You need to figure out where the risk is in
your project because "risk=expense". By figuring out
what can go wrong, you can take measures to
minimize and contain that risk.

2.  3. SERVICES. Be sure to fully account for the
variety of services that will be required. A few
often overlooked areas that can increase your
services bill significantly include: meetings,
testing time, debugging time and "while you’re
here…" time.
 4. TECHNOLOGY. Choosing the wrong
technology is can be a huge waste of money.
From the worst case scenario of a totally failed
project to having to spend extra money to make
the wrong software do things it wasn’t
intended to do.

3.  CRM projects represent a
significant risk to a small business’
financial health and warrants
more "measure twice, cut once"
consideration before beginning.

4. 1) Tangible net benefits: A clear and precise cost-benefit
analysis which tallies all of the planned project costs,
quantifies each of the tangible benefits and calculates key
financial performance metrics such as ROI, NPV, IRR and
payback period. Costs should be less than 50 percent of
the benefits (because of inevitable cost overruns and
typical benefit adoption schedules) and the payback
period shouldn't exceed 12 months.
2) Intangible benefits: A total of the expected intangible
benefits including key performance indicators that will be
used to measure success or shortfalls.

5. 3) Risk assessment: A listing of the people, process
and technology risks in order to proactively
mitigate their probability and manage its impact on
project success.
When creating a cost-benefit analysis, assessing three main
categories including implementation costs, benefits and risk
helps establish a business case for pre-project planning, and
post-project success measurement. Implementation costs
are often split between IT costs and business unit costs,
where the business unit costs are typically equal to the IT
costs.

6. • CRM software licensing and maintenance/support
contracts
• EDI, database, operating system and other
software licensing and maintenance/support
contracts
• Hardware purchases and maintenance/support
contracts including servers, storage and network
upgrades (as required)
• Software integration and customization, including
design, development, test and on-going maintenance
• Implementation labor
• On-going administration and support labor

7.  Planning and requirements
meetings
 User training and learning time
 Process change management

8. • Key benefit area
• Key improvement
• Reduce cost of sales
• Enable self-service sales channels, changing
the mix of direct sales, tele-sales,
channel/agent sales, and self-service the most
effective/- least costly channel in order to
reduce costs and improve satisfaction
• Reduce sales administrative overhead
• Reduce the time spent on sales
administrative overhead tasks such as
commission calculations, forecasting and
reporting enabling increased selling time

9.  • Improve leads to sales closure rates
• Increase the percentage of leads which
are converted to sales
• Increase customer retention
• Reduce customer churn rate and
eliminate replacement expenses
• Improve customer satisfaction and
loyalty
• Improve customer lifetime value

10. 1. No Clarity on the Project Objectives
2. Lack of Executive Sponsorship
3. Lack of User Involvement during
Planning
4. Recreating existing processes in a new
system
5. Choosing the Wrong Partner

11.  KM focuses largely on finding the right
solution to a problem that requires detailed
insight, be it locating the right expert at the
right time, or ensuring that the solution to a
complex problem can be written once but
reused many times. It is not difficult to
understand why that capability is of great
interest to CRM strategists.

12.  Industry estimates suggest that upwards of
three quarters of variable support costs come
from the time and energy put into the
resolution of customer support inquiries, rather
than routing and post-call management. "The
[routing and management] processes have
already been automated by robust systems
from Genesys and Aspect, and from Siebel,
PeopleSoft, and Clarify," says Ben Kaplan, vice
president of marketing and products for
knowledge systems developer Kanisa.

13.  "The resolution process remains largely un
automated, because [KM] technologies are
tools and not solutions, devoid of business
process support or any deep integration with
the customer service business process," Kaplan
says. "The way you make knowledge
management successful, making it move
customer service metrics, is to integrate it very
deeply into the CRM system and very deeply
with business process support."

14.  Many companies still have not attained the
level of deep integration that ties knowledge
base activity (particularly at the self-service
level) to a CRM-facing customer record, but
companies like computer peripheral
manufacturer Adaptec use the intersection of
CRM and KM to guide product and service
decisions and attempt to waylay customer
service overloads before they begin.