Dollars in Increase

Sales Increase Impact

$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0

Net Profit Increase

C2 Implementation
Costs

Net Profit Increase

C2 ROI Comparison

$1,200,000

Savings Dollars

$1,000,000
Customer Retention 4%

$800,000

Sales Increase 2%

$600,000

Sales Productivity 5%
C2 Implementation
Costs

$400,000

$200,000

$0
ROI Impact

C2 Costs

Sales Productivity Impact

$3,500,000
$3,000,000
$2,500,000
$2,000,000

Sales Productivity

$1,500,000

C2 Implementation

$1,000,000
$500,000
$0

First Year C2 Impact

$800,000
$700,000
$600,000

Dollars to Net Profit

$500,000
$400,000
$300,000
Series1

$200,000
$100,000
$0
1

($100,000)
($200,000)
($300,000)
Months

10 11 12

CUSTOMER STATISTICS
ROI CALCULATIONS
Annual Revenue
Gross Profit $
Gross Profit %
Net Profit $
Net Profit %
Expected Annual Growth
Average Time to Order
Average Customer Service Call Time
Average Order Size
# of Orders
# of Customers
Avg. # of Orders per Customer
Avg. # of Orders per Retained Cust.
Revenue from Repeat Customers
Revenue from New Customers
Customers Lost %
# of Customers Lost
# of Sales Personnel
Average Annual Salary with Benefits
Average Net$ Per Sales Personnel
Shipping Errors
Late Shipments

Value

Source

$515,000,000
$115,875,000
22.50%
$10,428,750
9%
5%
25
$800
643750
40960
15.71655273
5
$505,000,000
$10,000,000
5%
2048
174
$85,000
$59,935
0%
0%

Customer
Calculated
Customer
Calculated
Input
Input
Customer
Customer
Customer
Calculated
Customer
Calculated
Customer
Customer
Customer
Input
Customer
Customer
Customer
Calculated
Input
Input

Cost of Sales
Bottom Line Profit
Expressed in Net profit Numbers

Customer ROI Data

ROI Impact
C2 Implementation Costs
Sales Productivity 5%
Sales Increase 2%
Customer Retention 4%
Savings Impact Total
ROI % for one Year
Months to Pay for C2

$320,000
5%
2%
4%

205.49%
3.93

0
$739,500
$208,575
$29,491
$977,566

C2 Costs
$320,000
0
0
0

Net profit Numbers

Existing Customer Environment

Customer Information
Customer Name
Industry
Current Sales Revenue
Cost of Sales (Pct of Total)
Gross Profit
Selling Expense (Pct)
Other Expenses
Net Profit

Current
Data

Current
Initial Year

Retail
$515,000,000
78%
$115,875,000
91%
$0
$10,428,750

$515,000,000
$399,125,000
$115,875,000
91%
$0
$10,428,750

Year +1

$540,750,000
$419,081,250
$121,668,750
91%
$0
$10,950,188

Projected Customer Environment

Customer Information
Customer Name
Industry
Current Sales Revenue
Cost of Sales (Pct of Total)
Gross Profit
Selling Expense (Pct)
Other Expenses
ROI Impact
Net Profit

Current
Data
Retail
$515,000,000
78%
$115,875,000
91%
$0
$657,566
$11,086,316
Net Benefit

Projected
Initial Year

Year +1

$515,000,000
78%
$115,875,000
91%
$0
$657,566
$11,086,316

$540,750,000
78%
$121,668,750
91%
$0
$1,026,445
$11,976,632

$657,566

$1,026,445

Key Customer Input

ROI
Cost
Benefit
Return
Payback
(in Months)

$320,000
$977,566
205%
3.93

Detail Benefits
Sales Force Automation Benefits
Sales Increase

Reduced Sales Cycle

# of Reps
174

Average $/Person
$59,935

Current Total
$10,428,750

Sales Cycle (days)

0

% Improvement
0%
Dollar value
(per year)

New Sales Cycle

0

Improved Retention

Yrly Value

Improved Customer Loyalty

Improved Productivity
Customer Service

4%

$327,680

174

5.00%

Avg Salary

$29,491
Avg Salary
$85,000

% Calls
Service Req/Month Escalated Level 2

Improved Service Productivity

Number of Service Reps
Current
Level 1 - Time to Prep
Level 1 - Time to Resolve
Projected
Level 1 - Time to Prep
Level 1 - Time to Resolve

2.00
7.00

Improved Customer Satisfaction

Current
Projected

Sat Index
100%
100%

$ Value
$10,428,750
$10,428,750

Reduced Cost - Less ship errors

Shipping Errors
% Late

Current
0%
0%

Projected
0%
0%

0.30
6.00
Customer
Lifetime Value
$73,001,250
$73,001,250
Current $ Value
$0

Marketing
Improved Marketing Campaigns

Improved Close Rate

Current % Leads
0%

Leads/Close
0

Projected % Leads Current Efficiency

0%
$0

0
0%

New Close Rate

0

Year+2

$567,787,500
$440,035,313
$127,752,188
91%
$0
$11,497,697

Total

$1,623,537,500
$1,258,241,563
$365,295,938
$3
$0
$32,876,634

Year+2

Total

$567,787,500
78%
$127,752,188
91%
$0
$1,026,445
$12,524,141

$1,623,537,500
78%
$365,295,938
91%
$0
$2,710,455
$35,587,090

$1,026,445

$2,710,455

Cost of "Doing nothing"

- Lost Sales
- Lost Productivity
- Lost Customers
- Customer Satisfaction

$0
$0
$0

$0

% Improvement
2.0%

Projected
Revenue/Person
$61,134

$ Benefit
$208,575

$0

$29,491
$739,500.00
Level 2
Time to resolve

Net Benefit

$739,500
Current Support
Costs per Month

Projected Costs
Per Month
$0
$0

Annual
$ Benefit

$0

$0
$0
Projected $ Value
$0

Projected Benefit
$0

$0
$0

Projected Efficiency
$0

$0

Improved Sales/
YR/rep
0.00

$0
$0

Totals
- Sales Force Automation
- Customer Service
- Marketing Automation

$977,566
$0
$0
$977,566

Sales Productivity Value in Labor Costs Dollars

Increase

Value
20%
19%
18%
17%
16%
15%
14%
13%
12%
11%
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%

2958000
2810100
2662200
2514300
2366400
2218500
2070600
1922700
1774800
1626900
1479000
1331100
1183200
1035300
887400
739500
591600
443700
295800
147900

Sales Increase Net Profit

10.00%
9.50%
9.00%
8.50%
8.00%
7.50%
7.00%
6.50%
6.00%
5.50%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.75%
1.50%
1.25%
1.00%
0.75%
0.50%
0.25%

Value in Net Profit Dollars

1042875
990731.25
938587.5
886443.75
834300
782156.25
730012.5
677868.75
625725
573581.25
521437.5
469293.75
417150
365006.25
312862.5
260718.75
208575
182503.125
156431.25
130359.375
104287.5
78215.625
52143.75
26071.875

C2 Costs
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000
$320,000

Customer Retention % # of Customers Value of customer revenue retained

10.00%
9.50%
9.00%
8.50%
8.00%
7.50%
7.00%
6.50%
6.00%
5.50%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.75%
1.50%
1.25%
1.00%
0.75%
0.50%
0.25%

204.8
194.56
184.32
174.08
163.84
153.6
143.36
133.12
122.88
112.64
102.4
92.16
81.92
71.68
61.44
51.2
40.96
35.84
30.72
25.6
20.48
15.36
10.24
5.12

$819,200.00
$778,240.00
$737,280.00
$696,320.00
$655,360.00
$614,400.00
$573,440.00
$532,480.00
$491,520.00
$450,560.00
$409,600.00
$368,640.00
$327,680.00
$286,720.00
$245,760.00
$204,800.00
$163,840.00
$143,360.00
$122,880.00
$102,400.00
$81,920.00
$61,440.00
$40,960.00
$20,480.00

Net Profit
$73,728.00
$70,041.60
$66,355.20
$62,668.80
$58,982.40
$55,296.00
$51,609.60
$47,923.20
$44,236.80
$40,550.40
$36,864.00
$33,177.60
$29,491.20
$25,804.80
$22,118.40
$18,432.00
$14,745.60
$12,902.40
$11,059.20
$9,216.00
$7,372.80
$5,529.60
$3,686.40
$1,843.20

Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12

($238,536)
($157,072)
($75,608)
$5,855
$87,319
$168,783
$250,247
$331,711
$413,175
$494,639
$576,102
$657,566

SAVINGS CALCULATOR

The C2 Customer Service Savings Calculator shows the amount your company can save by using C2 for first and second level
All numbers are industry averages and may vary for your company. You may change fields in yellow to better reflect your comp
Please enter the bold boxed numbers in the left-hand numeric field below:
Enter Info:
Salary of Avg employee

$150,000.00 - Enter your average employee salary he

Salary plus 25% = Total Emp Cost

$150,000

Cost per Day per employee

$625

Cost per minute per employee

$1.3021
Customer Service Costs - Now

Number of service requests per month

Number of Customer Service Reps.

15,000

- Enter your average number of support

20

Number of minutes to prep. Support ticket (i.e. read fax, create support ticket,
lookup status in ERP)

2.00

Avg number of minutes to resolve 1st level support call (6 min ave)
Total Number of Minutes req. to handle support ticket (Call Prep. & Actual Phone
Time)

7.00

Cost for 1st level support

$175,781.25

Percent of calls requiring followup phone calls or escalated support

9.00
15%

Avg number of minutes per escalated (2nd level) support call

19.00

Cost for 2nd level call support

$55,664.06

Cost of support (=support cost Level 1 & 2.) per month

$231,445.31

Savings per month after automating Service Dept.

Per Employee ROI Analysis
Avg. Number of 1st Line Calls per Rep (per month)

750.00

Avg. Number of 2nd Line Calls per Rep (per month)

112.50

Avg. Time Spent Resolving 1st Line Calls per Rep (minutes per month)

6,750.00

Avg. Time Spent Resolving 2nd Line Calls per Rep (minutes per month)

2,137.50

Cost per Rep/per Month for 1st Line Support

$8,789.06

Cost per Rep/per Month for 2nd Line Support

$2,783.20

Total Savings Per Rep/Per Month for 1st Line & 2nd Line Support

Total Savings for Automating Customer Service based upon number of Reps.

$58,300.78

Total Phone Support per month

$231,445.31

TOTAL YEARLY COST OF SUPPORT

$2,777,343.75

First Year Savings With C2 Customer Service Software

Total Five Year Savings assuming no growth

g C2 for first and second level customer service calls.

ow to better reflect your company's actual costs.

r your average employee salary here

Avg yearly employee cost broken down to minutes

Customer Service Costs with C2

r your average number of support calls

0.30

Automation efficency gained by implementing Fax Server & automatic creation of support tickets

6.00

6 min is average from Help Desk Institute, this assumes automation in place will most likely be h

6.30
$123,046.88

Total requests X Minutes X Tech cost per minutes

Enter the percent that require additional work or escalated to level 2

17.10
$50,097.66
$173,144.53

19 min is average from HDI - Estimating efficency increase of approximately 10%

Total 2nd level calls X Minutes X Emp Cost per min
Total cost per month

$58,300.78

750.00
112.50
4,725.00
1,923.75
$6,152.34
$2,504.88
$2,915.04

$58,300.78
$173,144.53
$2,077,734.38

$699,609.38
$3,498,046.88

Savings calculation based upon total number of calls or minutes saved per month per CSR
Total of Customer Service Tickets (1st & 2nd level calls)
Total X 12 months
Difference between with and without a Customer Service Solution
Difference X 5 years

er & automatic creation of support tickets

s automation in place will most likely be higher with paper based system. I am estimating a 1 minute reduction in call time due to Knowledge Base

ease of approximately 10%

r minutes saved per month per CSR

o Knowledge Base