Anytime a business has to spend money on enhancing their CRM solution, they should first determine the ROI. This will not only help you determine which SugarCRM enhancement you should make but in what order they should be completed. Let’s take a look at the two most commons ways you can calculate ROI.

In this analysis, we will use a common scenario for our calculations. The business would like to enhance their sales reps efficiency with a solution that enables click to call functionality.

This organization has 20 inside sales reps that are responsible for making 50 calls per day.

Increased Efficiency

The first way to calculate if this enhancement would be worth the investment is to look at the time saved.

Let’s set the parameters:

  • The average inside sales rep’s base salary is $40K
  • 20 Inside sales reps
  • 50 calls per day
  • 252 work days per year
  • Manual dialing takes an average of 8 seconds.

With these parameters, your reps make 252,000 calls per year.

  • They spend 33,600 minutes just on dialing.
  • Your base salary expense is $800,000 /yr
  • Each rep works 120,960 minutes year
  • Each rep costs $ .33 minute
  • Total cost of manual dialing per year = $11,088
  • Click to dial takes 1 second so your savings is actually $9702 / yr with a click to dial solution.

So by implementing a click to dial solution in this organization, they can save $9702 /yr. The assumption is that this time saved could be used on something else, like more calls.

Opportunity Cost

Let’s look at this from a different angle of how much is the opportunity cost of spending this time dialing.

  • Let’s say each sales rep averages $250K /yr in sales.
  • The team would bring in $5M /yr in sales.
  • Total minutes worked by the team 2,419,200
  • 1.3% of their time dialing
  • If the team were selling instead of dialing, it should result in $65,000 of additional sales.

As you can see, you can look at this two ways. But for this team, manual dialing is a problem worth somewhere between $11,088 and $65,000 /yr.