Posted: March 5th, 2016

ROI for a Customer Relationship Management Initiative at GST

You are a member of the Business Impact Modeling team at Teradata. Analyze the project and calculate the Return on Investment (ROI) for the analytical CRM investment. Then, based upon your thorough analysis, help Davis make a recommendation to GST’s executive management.
1.    What cash-outflow investment is required to initiate the proposed acquisition program and what sort of monthly cash flows should GST expect to realize from the new program
2.    What is the expected ROI? Expected payback?
3.    Should Kolks and Johnson adopt Teradata’s proposed acquisition solution? Are there any other factors Johnson and Kolks should consider prior to making their decision?