Salesforce Gamification - The business case justification
It is likely that you are currently realizing about 33% of the predicted benefits your original CRM business case justification suggested you would. However, for a small percentage of your current CRM costs, Salesforce Gamification can unleash your CRM system’s true potential, allowing you to access over 80% of the originally predicted benefits.
A bold statement, but by revisiting your original CRM business case justification, we can demonstrate how, by using Salesforce Gamification to motivate the right behaviors and increase user adoption and engagement you can deliver the boost in business performance that will bring you much closer to your original business case.
The original CRM business case: the revenue equation
You may recognize the following justification approach for CRM; it is a trusted and robust method that has been used for many years by CRM vendors to calculate and justify an investment in a well-tuned CRM system.
Fundamentally the justification revolves around generating a series of 5% productivity gains that, in turn, generate a 22% overall revenue increase.
CRM vendors performed detailed analysis of their customer base and identified 83 potential benefit areas across the sales, marketing and customer service functions. These can be broadly grouped into 10 categories:
- Improved account management
- Increased sales, marketing and customer service operational efficiency
- Improved sales, marketing and customer service effectiveness
- Increased forecast accuracy
- Increased customer loyalty
- Improved opportunity management
- Increased speed and response time
- Reduced sales, marketing and customer service expense
- Improved sales management
- Increased employee retention
These benefits are then further aggregated into four key components that comprise the revenue equation which is used to justify investment:
The proposition is that the efficiencies and effectiveness gained from the use of a CRM system will:
- Increase your number of qualified leads
- Increase your win rate
- Increase your average deal size
- Decrease your average sales cycle
When the use of a CRM system moves the needle in each of these areas by 5% then, according to the revenue equation, you would see the following revenue increase:
So, for example, the introduction of a well-tuned CRM system should elevate a sales representative currently selling $500k per annum to sales of $610k per annum.
The day-to-day reality of CRM adoption
This logic is very easy to buy into, however unfortunately it fails to consider one very important factor – the impact of human behavior.
The revenue equation demonstrated that there was a 22% revenue gain to be made from deploying a well-tuned CRM system. However, this gain is not accessed unless the end user first adopts the technology and then, after adopting, uses it effectively.
The all too common reality is that most organizations do not end up with a well-implemented, well-tuned CRM system that drives best practice sales, marketing and customer service processes.
For example, sales reps often mistrust CRM systems seeing them as a management tool that offers little personal benefit. As a result, adoption rates are much lower than desired. Worse still, engagement rates (the breadth of the system being used in a best practice fashion) are even lower. This means that the gold standard processes you designed to drive sales and delight your customers are almost certainly not being attained.
Consequently, data quality suffers. Only partial information is captured meaning marketing budget is wasted while forecast accuracy is almost impossible to achieve. All of which conspire to mean that the promised land of a 22% revenue gain is never achieved.
In fact, if we assume:
- A typical user adoption rate of say 66% (i.e. only 66% of users are actively using the CRM system)
- Of those users only 50% are fully engaged (i.e. 50% are using the CRM system in a best-practice way)
Then the stark reality is that only 33% of the expected CRM benefit is being realized – therefore meaning only a 7% revenue uplift and not 22%.
Due to poor adoption, a whopping 66% of the expected CRM benefit is left on the table.
Read our 11 step guide on how to drive adoption of Salesforce.
The Salesforce Gamification boost
Many businesses are using Salesforce Gamification to motivate user behaviors to increase adoption and best practice engagement. The results are impressive and demonstrate that positive motivation will drive users to perform the tasks that you have identified will lead to success.
Sixpack Shortcuts were able to double their average sales price and reduced sales on-boarding time by 59 days using Motivate and ContactWorld integrated with their CRM, Salesforce.
By increasing engagement and motivating their sales reps to adopt more best practice behaviors, Sixpack Shortcuts have been able to increase their growth rapidly.
This case study highlights that by introducing gamification and increasing user adoption you can rapidly unlock more of the expected benefits that a CRM system can deliver.
To put it into perspective, let’s take a simple example of an organization that has revenues of $100m. Using a CRM system to its full potential the original CRM business case suggest that a revenue uplift of 22% would be achievable, boosting revenue to $122m.
CRM Revenue Impact
However, due to poor adoption and low user engagement most organizations will only see, at best, a 1/3rd of this benefit. By introducing Salesforce Gamification there is a rapid and low-cost way to unlock 84% of the revenue benefit available, increasing the revenue uplift from $7m to $18m; representing an $11m increase on today’s picture, boosting the overall revenue to $118m
If we, at NewVoiceMedia can be of assistance feel free to contact us for more information.