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Study Sees 243 Percent ROI on Microsoft Dynamics CRM
Study Sees 243 Percent ROI on Microsoft Dynamics CRM

By Barry Levine
May 3, 2011 10:33AM

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A study by Forrester Consulting and commissioned by Microsoft found a 243 percent ROI from Dynamics CRM 2011. Forrester said the benefits of Microsoft Dynamics CRM 2011 include increased sales and lower costs. An analyst said the study's payback period of 4.1 months is "aggressive," and Microsoft has an edge in integrating with other software.
 



A new study released Tuesday says Microsoft Dynamics CRM 2011 provides a three-year, risk-adjusted ROI of 243 percent over a payback period of 4.1 months. The study was commissioned by Microsoft and conducted by Forrester Consulting.

The study projected the ROI for an initial deployment of 50 users in a 2,000-employee organization.

'Measurable Benefits'

Forrester found "several measurable benefits" in personal and process productivity from implementing Dynamics CRM 2011. They include an increased sales productivity of five percent resulting from ease of use and interoperability with such applications as Microsoft Outlook, and improved cross-sell collaboration inside sales and customer-service teams because of better access to reporting tools and such collaboration software as Microsoft SharePoint Server 2010.

The study also said an organization using Dynamics CRM 2011 could avoid hiring 1.5 full-time equivalent positions for a 10-person customer-service team because of improved issue resolution.

Other benefits were lowered costs of sales because of streamlined processes and operations, a 50 percent acceleration of sales conversion, and a resulting revenue gain because of improved collaboration. The report also found a productivity savings of 16 man-hours per month because of better reporting tools, data consolidation, reporting automation, and richer dashboard capabilities, and lower costs to customize CRM 2011 to a customer's needs.

The study said CRM 2011 could achieve marketing cost savings of more than $200,000, risk-adjusted over three years, because of more real-time insights and improved campaign management due to improved analytics. It noted that the solution offers multiple deployment options with cloud, on-premises, and partner-hosted models.

'Very Aggressive' Payback Period

Forrester said 55 percent of 455 large North American and European organizations the company surveyed in the latter part of last year had implemented a CRM solution, with many considering upgrading. Another 19 percent planned to buy a CRM solution for the first time within the next 12 to 24 months. For this study, the research firm conducted in-depth interviews with executives from nine companies who were CRM 2011 customers, and who were in the early stages of implementation.

Laura DiDio, an analyst with Information Technology Intelligence Corp., said the potential ROI "seems about right," although she noted a payback period of 4.1 months is "very, very aggressive."

DiDio added that the study assumes a company is "fairly up to date in its infrastructure," and that a key edge Microsoft has on competitors is in the integration of its CRM with other infrastructure components, most notably those from Microsoft. For instance, Microsoft hasn't been shy about pointing out the integration of Dynamic CRM Online with its own Outlook and Office software.

Microsoft has been very aggressively pushing its CRM 2011 solution against those of its competitors, notably Salesforce and Oracle. At the end of last year, the Redmond, Wash.-based software giant announced it would rebate customers up to $200 for each Salesforce.com or Oracle customer who switched to Dynamics CRM Online.
 

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