A Simple, Yet Effective Approach CRM budget planning Post Go-Live
A model for maximizing ROI and ensuring long-term Success in your CRM investments
When it comes to planning for the future of your Customer Relationship Management (CRM) platform after its initial implementation, using a simple and effective forecasting heuristic is crucial. This approach can empower decision-makers to navigate uncertainties, align strategic goals with budget constraints, and ensure that the platform continues to meet evolving customer and business needs.
With my experience in successfully facilitating two nearly year-long Salesforce implementation projects, I have relied on the following model to establish corporate budgeting expectations for 3 years:
The model:
Year 1: "Standing up" - total cost = $1 million
Year 2: "Transition" - 40% of year one investment, amounting to $400,000. This $400,000 is allocated between maintenance1 ($150,000) and subsequent builds2 ($250,000).
Year 3: "Purely Maintenance" - 20% of year one investment, totaling $200,000.
In the day-to-day operations of CRM, year 4 presents an opportunity to reassess how the CRM can best serve the business, revalidate use cases, and review platform automation.
In summary, when planning your CRM budget for the three years following the go-live, year 1 represents the base investment at 100%, year 2 accounts for 40% of year 1 (including maintenance and subsequent builds), and year 3 covers 20% of the year one investment (primarily maintenance). It's important to note that year 4 is a re-evaluation year, and the cycle begins anew.
First six months post-go-live, hyper support; second six months post-go-live, level 2 support (less than 40 hours in scope at a time).
Further customizing or configuration projects (greater than 40 hours in scope at a time).