Although it may look and sound complicated, calculating the Total Cost of Ownership (TCO) for on demand CRM is as simple as elementary subtraction.
How To Calculate the Lifetime Value of A Client
First, some food for thought.
Jeffrey Pfeffer, best-selling author and Stanford University Graduate School of Business Professor, reported in the December 2002 issue of Business 2.0 a major disconnect between technology investments and customer satisfaction. He found that although one research firm reports that 34% of technology managers continue to invest in customer relationship management (CRM) software (to the estimated tune of $38B through 2005), customer service in several industries is deteriorating rapidly.