Calculation of the economic effect of proposed activities as a way to determine the effectiveness of investments. Economic effects from the implementation of CRM Calculation of economic efficiency and payback period for capital investments in production development

Will the money invested in a corporate website be returned? This is the question that managers, commercial directors and IT specialists of companies who make decisions about developing a corporate website ask themselves.

The question is very important and, perhaps, the key one for making a decision. Despite the fact that it is quite difficult to accurately assess the effect of creating and maintaining a website for a specific enterprise, this task can be broken down into components. This approach will make it easy to determine whether the site will pay off or not and what is the payback period.

Corporate website: main effects

Payback can be determined by calculating the additional income generated by the site - this can be either direct income to the company or cost savings. Thus, the company receives the following economic effects thanks to the site.

1. Attracting clients and partners, direct sales.
Typically, this site function is given key importance, since the effect of direct sales is immediately visible. This is the easiest way to calculate the return on investment in a website. However, it is incorrect to consider direct requests from it as the only effect of creating and maintaining a website. In this case, other benefits that this business tool brings are not taken into account.

2. Brand promotion.
The website is the face of the company. The opinion of a large number of partners is impressed by visiting the corporate website. This part of the website’s effect also includes optimization of work with the media.

3. Information support for clients and partners.
Posting additional information about the company, product on the website, opening systematic consultations on your website, etc. Supporting partners is good business practice. It not only wins them over, but also remains one of the integral components of the professional work of a modern company.

4. Supplier search.
For many large enterprises, the issue of optimizing supplies is relevant. A fairly convenient means of solving this problem is to post information about the company’s needs on the corporate website. Often suppliers themselves find such sections and constantly monitor them.

5. Attracting new employees and optimizing the hiring process.
If a company has its own website, its chances of attracting a qualified employee are significantly increased. It also opens up the opportunity to post a list of specific vacancies, key requirements and hiring criteria, resume forms and even test tasks.

6. Bringing the client part of the company's business logic to the website.
Examples of such solutions include systems for ordering goods, online stores, systems for booking tickets or reserving products, consultations and questions for specialists.

7. Impact on internal corporate relations. The section of the site intended for employees helps solve problems to increase work motivation, unites the team with a single idea, and makes work more coordinated.

8. Exporting the internal corporate part of business logic to the website
This point opens up wide scope for solutions united under the general name intraservers. Intraserver is the general name of an internal corporate web server, the main functions of which are the following: publication of company news, company orders, articles useful in work, organization of a geographically distributed document flow system, requests for transport and consumables, corporate communication systems, distributed customer relationship management systems (CRM), transferring part of the functions of the internal accounting system (for example, you can remotely issue invoices in 1C) - here integration with almost any internal information component of the company is possible.

The main benefits of the site are listed above. But how to evaluate their economic impact? Obviously, customer-facing components are directly related to the quantity and quality of website visitors. And here the “presentativeness” of the site becomes of great importance, that is, its appearance, design quality, ease of use, the presence of useful functions and useful information.

How to evaluate efficiency in money?

The intracorporate effect can be assessed as some kind of savings or additional earnings. Here, it is most convenient for the person responsible for the economics of a given area of ​​work, for example, the business logic of sales, to evaluate the effect of the site in the same rubles per month. And so on for each section of optimized business logic.

Conventionally, the monthly return on a website can be calculated using the formula below. Calculations of its first part can be carried out in two ways.

The 1st method is associated with the price of attracting the attention of a partner:

The 2nd method is associated with the economic effect of increased sales:

Thus, we get the amount that the website earns per month. Next we move on to the costly part of creating a website.

Website related costs include:

1. one-time costs for creating a website;

2. current technical costs for maintaining the site;

3. current costs for updating and promoting the site.

Obviously, a site is profitable if the monthly income from it is greater than the cost of its maintenance. This difference can be called “net site income.” This ratio should be analyzed first of all, and you should pay very close attention to the fact that the costs of updating and promotion increase the flow of site visitors. This, in turn, multiplies the effect of the site - each additional visitor to the site, according to the laws of advertising, costs the site owners more than the previous one. Therefore, it is necessary to choose the optimal investment/attendance balance.

Here we come to the concept of the payback period of the site. As you know, this is the date when the amount of net income from the site exceeds the costs of its creation. To simplify the calculations, no conversion of these amounts to values ​​calculated on the basis of interest rates, etc. was used here. Let’s take a simple amount of the site’s net income: “payback period in months = the amount of one-time costs for creating the site / site’s net income per month.”

What payback periods for investments in projects can be considered acceptable? This question is answered differently in different industries and companies: for example, in construction it can be 3-7 years, in manufacturing - 2-4 years, in the IT sector - 1-2 years.

As an example, consider an analysis of investments in the website of company “A”, operating in the Altai Territory, which is described by the following conditions (price relevance - 2004):

1. staff - 30 people;

2. monthly revenue 1.5 million rubles;

3. the company produces goods and supplies them to its region (20%), nearby regions (60%) and distant regions (20%);

4. the site can increase sales to distant regions by 50%, to nearby regions - by 20%, and “nearby” sales - by 5%;

5. the company is ready to pay intermediaries 3% of the price of the goods for increasing sales by the same amount;

6. the price of attracting the attention of a potential client is 20 rubles;

7. planned site traffic - 1,500 visitors per month, of which 800 are unique “industry specialists”;

8. economic effect from optimizing the sales process 1000 rubles/month;

9. economic effect from optimization of personnel work 300 rubles/month;

10. economic effect from optimizing the process of information support for customers 2000 rubles/month;

11. economic effect from savings on other advertising means 700 rubles/month;

12. website development costs RUB 35,000;

13. technical maintenance 350 rub./month;

14. costs for website promotion and updating information: 3,000 rubles/month.

Calculation: Effect of increasing sales (we save on intermediaries) = ((1500000 × 20%*50%)+(1500000 × 60%*20%)+(1500000 × 20%*5%)) * 3% = 10350 rub. /month

Or the price of attracting attention = (20 rubles * 800 visitors * 1) = 16,000 rubles/month. Average value from 2 calculation methods = (10350+16000)/2 = 13175 rub. Amount of other effects = 4000 rub./month.

Monthly effect of the site is 17175 rubles. Net income of the site = 17175 - 3000 - 350 = 13825 rubles. per month Website payback period = 35,000 / 13,825 = 2.53 months.

As can be seen from this example, a company of this size receives a significant economic effect and returns the money invested quite quickly. At the same time, a website that does not pay off is a mistake made at the design stage and the result of an incorrectly constructed business model. Only the professionalism of the developer and the customer in assessing the economic effect of the site can guarantee a return on investment. In this case, the developer plays an important role, since only he can predict many of the effects of the website. When choosing a developer, you should make sure of his professionalism and pay special attention to his interest in ensuring that the resource in which the investment will be made can generate profit. This is what will help to establish and maintain constant and mutually beneficial cooperation.

Thus, the main conclusions are as follows:

• the website’s payback can be predicted and calculated;
• before deciding to develop a website, it is necessary to calculate its economic efficiency and payback;
• the site developer must be competent in the economic issues of web resources and must treat the client as a reliable and long-term partner, even if the order is one-time in nature.

Problem 1

The company plans to invest available funds in the amount of UAH 150 thousand. for 4 years. Determine the most effective option for placing funds in a bank deposit account from several alternatives. According to the first option, it is planned to annually accrue compound interest at a rate of 18%, according to the second option, monthly accrual of compound interest at a rate of 14%, according to the third option, annual accrual of simple interest at a rate of 24%.

To make a decision on choosing the most effective option for allocating funds, it is necessary to estimate the future value of the invested funds.

When using compound interest, the income received is periodically added to the amount of the initial investment, that is, the interest is also calculated from the accumulated amount of interest payments. In this case, to estimate the future value of invested funds, the formula is used:

The first option assumes annual compounding of interest at a rate of 18% for the amount of UAH 150,000 (PV = UAH 150,000, i = 18%, n = 4 years).

If interest is expected to be paid several times a year (daily, monthly, quarterly, semi-annually), the future value of the invested funds can be determined using the formula:

where m is the number of accruals per year, units.

According to the second option, PV = 150,000 UAH, i = 14%, n = 4 years, m = 12.

Using simple interest involves increasing capital only from the amount of the initial investment throughout the entire investment period. To estimate the future value of invested funds (FV), we use the formula:

where FV is the future value of invested funds, UAH,

PV – the amount of funds invested in the initial period, UAH,

i – interest rate, coefficient,

n – term of investment of funds.

The third option assumes annual accrual of simple interest at a rate of 24% for the amount of 150,000 UAH, PV = 150,000 UAH, i = 24%, n = 4 years.

The most effective investment option is the one for which the future value of funds is maximum. The maximum value of the future value of funds is achieved when investing funds at 24% per annum with annual compounding of simple interest.

Answer: 294,000 UAH. at 24% per annum with simple interest compounded annually.

Problem 2

An industrial enterprise plans to purchase new equipment in three years. The future value is expected to be UAH 900 thousand. It is necessary to determine how much funds need to be placed in a bank deposit account in order to receive a sufficient amount of funds after three years if the rate on deposit accounts is set at 17% compounded monthly or 21% compounded once a year.

To determine the amount of funds that must be placed in a bank deposit account in order to receive the required amount upon expiration of a specified period, it is necessary to estimate the present value of future cash flows (PV).

The current value indicator is calculated using the formula:

where FV is the future value of funds,

i – discount rate, coefficient,

n – calculation period, years.

PVIF i, n – current value factor (multiplier), the standard values ​​of which are presented in the table of current value factor values.

We use this formula to calculate the option with compound interest once a year, FV = 900,000 UAH, i=21%, n= 3 years.

Thus, 508,026.5 UAH must be placed in the bank’s deposit account in order to receive UAH 900,000 in three years under these conditions.

If interest is planned to be accrued more than once a year, then the calculation is carried out using the formula:

where m is the number of accruals per year.

PV =900,000 UAH. I =17% N = 3 years M =12

Thus, 542,383.6 UAH must be placed in a deposit account with a bank in order to receive UAH 900,000 in three years under these conditions.

The most effective for an enterprise is to invest a smaller amount of funds, that is, 508,026.5 UAH. at 21% compound interest per year.

Answer: 508,026.5 UAH at 21% compound interest per year.

Problem 3

The company plans to purchase industrial equipment, with initial costs estimated at UAH 600 thousand. During the first year it is planned to invest an additional 230 thousand UAH. (in the increase in working capital). Cash flow is planned in the amount of 115 thousand UAH. in year. The liquidation value of the equipment after 10 years will be 100 thousand UAH. It is necessary to determine the current value of cash flows annually and the economic effect as a result of the implementation of these investments if the project discount rate is 10%. The calculation results are presented in the form of a table.

Let's draw up a diagram of the investment process

where E is the economic effect,

n – total period of project implementation,

k – year of receiving inflow

m – year of investment

According to the calculation results, the total amount of discounted cash inflows for all periods of time is UAH 706.63 thousand, the amount of investment costs is UAH 809.3 thousand

A project can be accepted if, as a result of its implementation, the enterprise receives a positive economic effect. In our case, E = -60.2 thousand UAH. The economic effect is negative.

Problem 4

The table shows cash flows for five years of implementation of the investment project. Determine the economic feasibility of implementing this capital investment project by calculating the current cost of the project and the economic effect of its implementation. The project discount rate is 15%.

The economic effect from the sale of investments is the difference between the total amount of discounted net cash inflows for all periods of time and the amount of investment costs. Calculated by the formula:

where E is the economic effect, n is the total period of project implementation,

I – the amount of investment costs.

Most often, managers perceive the effectiveness of CRM implementation at the level of common sense. Indeed, the importance of such effects as increased sales productivity, customer satisfaction and retention is clear even to a non-specialist. Difficulties with evaluation arise when trying to accurately estimate the ratio of investments made to the return received (Return on investments, ROI), since there is no specific universal formula for such an assessment.

Today, many already understand that the effectiveness of an information system is determined by its content and the quality of implementation - the “correctness” of structures and processes, etc. In other words, the result of CRM implementation is determined by the quality of the business model. At the same time, in practice, the implementation of CRM is often implemented purely as automation existing processes with existing personnel. If the existing quality of the business model is satisfactory, then this approach is quite deliberate. In this case, we can talk about such implementation effects as increased staff productivity, increased speed of service, elimination of losses and duplication of information. This evaluates the return on costs of purchasing a CRM application system and implementing it in accordance with existing processes. Therefore, we can say that when implementing CRM as a software product and automating processes based on it, companies receive direct effects in the category of cost reduction and some indirect effects obtained through supporting the existing business model.

In a complex project to implement a client-oriented strategy and creating a system sales, you can get a significantly larger number of effects - both effects of the cost reduction category and effects of another order.

Various sources (META Group, Gartner Group, ISM, etc.) highlight the following main categories of effects from the implementation of CRM:

This qualification is quite clear and shows the main categories of effects obtained. However, it does not take into account such (at first glance, implicit) effects as risk reduction. For example, in business there is an expression “winner takes all.” In some markets, the loss of a competitive position can be fatal, and in this case it is no longer just about a simple increase in income. Therefore, for completeness of the classification, we will also talk about the effects of reducing (or increasing) risks from the implementation of CRM.

The nature and possibility of direct assessment of the resulting effect differ. From this point of view, we will be interested in the categories of direct economic effects and indirect economic effects.

So, let's divide the economic effects into three conditional categories:

1) direct economic effects;

2) indirect economic effects;

3) risk reduction effects.

Direct economic effects

This category includes direct effects that affect the profitability of the company. The table below describes the changes being made as part of the project to implement a customer-centric strategy and create a sales system and the resulting short-term and long-term economic effects.

Indirect economic effects

For example, these include an increase in the value of shares on the stock exchange as a result of increased transparency of processes and improved controllability, which is important for attracting the interest of third-party shareholders. Possible effects of this kind are presented in the figure below.

Risk reduction

The table below describes the main risks that the implementation of a CRM system can help reduce.

At the same time, the implementation of CRM can lead to the emergence of new risks, such as a decrease in employee productivity at the initial stage of operating the system, and rejection of the system by a number of employees.

Assessing the effect of CRM implementation

Basic approaches to assessing the economic effect of CRM implementation

It is obvious that achieving all the performance indicators given above within the framework of a separate project is impossible due to limited resources (time, financial and others). Therefore, a CRM implementation project must include a goal setting stage. The goals of the project should be logically related to the strategic goals of the enterprise. In particular, using the balanced scorecard system (BSS), it is possible to decompose general goals into goals of “lower” levels - client, operational, personnel and technology.

To assess the effect of CRM implementation, a method of analyzing several key indicators before and after (as well as during) changes can be used. These are the measurements against which the company will further evaluate the effectiveness of its relationships with clients. Some of these metrics can be determined by most companies before the project begins. Several company-specific indicators are selected, for example:

• percentage of response of potential clients to marketing messages (audience reaction);
• increase in new customers (return rate);
• purchase price;
• share of successful transactions;
• duration of the sales cycle;
• average time for solving typical problems by the service department, etc.

Indicators are usually combined by business process groups or CRM subsystems.

The paradox of the situation is that for a formal assessment of the effectiveness of CRM implementation, non-financial data from the periods before the implementation of the CRM system is needed, but this data is not available, since to collect it you need... a CRM system. Yes, you can estimate the bottom line - the growth of the company's income over different periods of time, but is it caused by the introduction of a CRM system? To answer this question, you need to be able to analyze the structure of the client base, the efficiency of managers, the growth of loyalty of the client base, and much more, which can be done using the CRM system itself. Therefore, in order to obtain a reasonable assessment, the selected indicators (both in physical and monetary form) are monitored as the relevant processes are reorganized and the components of the information system are introduced. You can compare the monetary value of the effects of the reorganization and the associated costs to estimate the payback period of your CRM investment.

Another problem in assessing effectiveness: certain economic effects from the implementation of a CRM system for each specific company may have their own impact. Without ready-made tools, many give approximate estimates with a significant spread, for example, “the percentage of customer retention increased by 5-10%, which resulted in an increase in profits by 20-30%, automation of a mass of manual operations almost doubled staff productivity” and others like that. Such estimates taken from practice are, of course, also valuable.

How to evaluate the effects of the possible implementation of CRM before the start of the project? This can be done based on the specific business model being implemented. Essentially, this model should be developed in the early stages of a CRM implementation project, and later it serves as a template that verifies the achievement of its indicators. Issues of constructing and formalizing such a model are beyond the scope of this article. Let's look at some examples here.

5.2. An example of assessing the direct economic effect obtained through increased employee productivity.

Let's take the sales department of a large company. Sales expenses consist of two components:

• fixed expenses (salaries, office maintenance, administrative expenses and others);
• variable expenses (bonuses, travel expenses, communications, consumables and others).

Let us assume that there is the following current structure of expenses and income of the department (for the year):

Let's assume that due to implementation, productivity growth of 15% per year is achieved. This means that sales staff have 15% more time to spend on their sales duties, which they can spend on attracting new customers. Let's assume that this leads to revenue growth by a proportionate amount, 15%. At the same time, the variable part of expenses will increase, and the constant part of expenses will increase slightly. As a result, we have the following department indicators after increasing employee productivity:

Thus, the direct economic effect from increased employee productivity: $15 million with a 30% increase in profits.

An example of assessing the indirect economic effect obtained by increasing customer loyalty.

For companies operating in conditions of limited and high cost of financial resources, the client strategy is to increase the productivity of interaction with the most profitable existing clients. Accordingly, let’s assume that the company has set a goal to increase sales despite market stagnation. To do this, we determine that we need to increase the average profitability of clients by 10% within one year. To do this, it is necessary to achieve an increase in customer retention rates. Segmentation and analysis of the customer base are carried out and a business model is created that would support the achievement of these indicators at all levels of the company: operational, technological, in terms of personnel training and others.

Let us highlight two segments and their indicators:

Here LTV/LTP (Lifetime Value, Lifetime Profit) is the “lifetime” value (of the client) - the income/profit brought by the client during the period (life cycle) of his purchasing activity. These indicators are defined as follows:

LTV = (Length of relationship / Average time between purchases) ´ Average purchase cost;

LTP = (Length of relationship/Average time between purchases) ´ Average profitability of a purchase.

1) For large companies without increasing customer retention, the total LTV of the segment = 20 × ((24 months/12 months) × 100 thousand dollars) × 1.2 = 4800 thousand dollars.

2) For large companies, with an increase in customer retention, the total LTV of the segment = 20 × (((24 months × 1.1)/12 months) × 100 thousand dollars) × 1.2 = 5280 thousand dollars.

Thus, the expected effect of measures to improve customer retention rates within the framework of a CRM project in the segment of medium-sized companies is an increase in income of $4.8 million, achieved in two years. Obviously, this is not a profit, since the project will incur costs depending on the specific measures within the project, but this figure will allow us to determine how much we can spend on measures to increase customer retention (including the implementation of a CRM system) for this segment within 2 years old. If we calculate the economic effects over a longer period, we can see that even an increase in retention by 5% can give an increase in profits of about 50% after 5 years.

The importance of the CRM methodology and tools also lies in the fact that with its help we can quickly monitor the achievement of established goals at intermediate stages and make informed management decisions for timely adjustments to the company's development.

As we see from the LTV/LTP indicators, growth in segment revenues and profits can be achieved not only by increasing the life cycle. This is also possible by reducing the average time between purchases (for example, by organizing cross-selling), as well as by increasing the cost (profit) of individual purchases (for example, by creating additional consumer value).

You can also compare the effects of increased labor productivity, discussed in the first example, and the effects of increasing the profitability of the existing customer base, discussed in the second example, and understand that the combined effect can be even more significant.

Here we looked at examples of assessing two effects from creating a sales system based on CRM methodology. As shown earlier, there may be many more such effects. As you can see, the effects of CRM implementation are multifaceted and complex, and there are no universal formulas for calculating return on investment. However, most of the effects can be roughly quantified on the basis of a pre-developed business model, which should be built within the framework of a project to implement a customer-oriented strategy and implement a CRM system.

Calculation of the economic effect of the proposed activities is carried out in order to determine the feasibility of financing a particular project, the essence of which is to make a profit.

Types of economic effect

Involves investing capital in order to generate additional profit to achieve In the second case, the economic effect cannot be calculated, since the social effect does not imply the receipt of profit.

The economic effect can be positive and negative. To achieve a positive effect, it is enough to make a profit. In other words, the investor's income must be higher than the amount of the investment. This effect is called profit. The second way to get a positive effect is not through investments that increase income, but through saving production costs. The most profitable way to get a positive effect is to increase income and reduce production costs.

A negative positive effect is achieved when the costs of the proposed event exceed the income. In this case, the economic effect will be called a loss.

Methodology for calculating the economic effect

The classic formula by which the economic effect can be calculated is as follows:

Ef = D - Z * K, Where

Ef - economic effect;

D - income or savings from events;

Z - costs of holding events;

K - standard coefficient.

Standard coefficient

In addition to the concept of “economic effect,” there is another term that is used to determine the feasibility of an investment. This is economic efficiency. It also requires a standard coefficient. It shows the minimum acceptable efficiency of an investment project, which must be achieved for the state and society.

The standard coefficient is a constant. Its meaning varies depending on the industry in which it is applied. The value of this index ranges from 0.1 to 0.33. The highest value of the parameter is in the chemical industry, and the lowest in the transport industry. In the industrial sector, the standard coefficient is 0.16; in the field of trade - 0.25.

The feasibility of calculating the economic effect of the proposed measures

The economic effect can be calculated for any period of time. It depends on how long the events are planned for. Calculation of the annual economic effect is carried out in cases where activities requiring investment are carried out or can be carried out during the year. An example is the payment of bonuses to employees for increasing sales volumes by month. Thus, there is no better way to understand the feasibility of bonuses than to calculate the economic effect for the year. The formula for calculating the economic effect of the proposed measures in this case will look like this:

Er = (D1 - D0) * Z * K, where

• Er - annual effect;
• D1 - income after events;
• D2 - income before events;
• Z - costs;
• K - standard coefficient.

Example

In order to more clearly understand how the feasibility of an investment project is determined, it is necessary to consider an example of calculating the economic effect.

The company is engaged in the manufacture and sale of furniture. Management decided to give bonuses to employees if they can improve product quality. As a result of the measures taken to improve the quality of the product, the company was able to earn 100 thousand dollars, which is 15 thousand more than before the implementation of the measures. 8 thousand dollars were invested, and the regulatory coefficient is 0.25. Accordingly, the economic effect is calculated as follows:

Eph = 15 - 0.25 * 8 = 13.

Long-term investments

In cases where the investment will be carried out over a long period of time, the economic impact indicator will not be able to reflect the feasibility of financing. Opportunity costs must always be taken into account. They appear when an investor makes one or another choice when there is another alternative. In this situation, opportunity costs are the lost profits that the entrepreneur could have earned if he had chosen a different investment option for his funds.

There is always at least one alternative investment option, and it must be taken into account in order to get a more complete picture when calculating the economic effect of proposed activities. This alternative is a bank deposit. In this case, it is necessary to take into account the deposit percentage and discount income and costs.

In this situation, the economic effect will be the net indicator. However, if, when calculating the classical economic effect, the calculation percentage was not taken into account, and a positive effect was achieved when income exceeded costs, then in the case of net present value, even its negative value may indicate that costs exceed costs.

The thing is that a negative net present value does not always mean that expenses exceed income. If a calculation percentage is included in the calculation, for example, 5%, then a positive cost means that the return on investment is more than 5%. If the NPV is 0, then the investment is profitable by exactly 5%.

To understand how cost-effective the proposed activities are when less than zero, it is necessary to calculate the internal percentage. A positive value shows the profitability of the project, and a negative value indicates its unprofitability. If the internal interest rate is 2 at a calculation rate of 5%, then the investment returned 2 percent, but with alternative uses of these funds it would have earned 3% more. Thus, in contrast to the economic efficiency coefficient, it is a more suitable solution for calculating the financing of enterprise improvement measures designed for a long period.