Calculate ROI-Knowledge Bases

Now let’s examine how we might calculate a monthly return. You may want to modify these to focus on quarterly or annual impacts. When doing so, it is recommended that you adjust your forecasted improvements based on your expectations of the adoption rate and implementation plans.

Reducing the Average Call Time on first contact.
Forecasted improvement: 1 minute
Savings = (Cases per month * Cost per case) * (Improvement / Talk Time for first contact)
Savings = (5000 * $40) * (1/12)
Savings = $16,667 per month

Increasing the First Call Resolution Rate.
Forecasted improvement: 20%
Savings = (Cases per month * Improvement) * ((Escalated Talk Time – Talk Time for first contact) / Talk Time for first contact) * Cost per call
Savings = (5000 * 20%) * ((18 – 12) / 12) * $40
Savings = $20,000 per month

Reducing the Escalation Rate.
Forecasted improvement: 5%
Savings = (Cases per month * Improvement) * (Cost per escalated case – Cost per case)
Savings = (5000 * 5%) * ($150.00 - $40)
Savings = $27,500 per month

Reducing the time required for a new support professional to become productive.
Forecasted improvement: 3 weeks
Savings = ((Improvement * Number of new hirers per year) * (Average burdened cost of a support professional / weeks per year)) / months per year
Savings = ((3 * 8) *($70,000 / 52)) / 12
Savings = $2,692 per month

Redirecting repeat calls to Self-Service.
Forecasted improvement: 10% of current cases redirected to self-service
Savings = (Improvement * Cases per month) * Cost per case
Savings = (10% * 5000) * $40
Savings = $20,000 per month

Developing an ROI for Knowledge Management in your support center depends on your current state, your implementation plans, your team, and your customers. The need for a formal ROI depends heavily on the senior management responsible for the support center. Some companies have minimized this focus because of an existing strong support from senior managers for Knowledge Management. Industry research groups such as Gartner, Forrester, Yankee, and others have well documented the value of Knowledge Management in the support center.


Here are some great White Papers on this topic

Source: Joslin & Associates

Client Success

MetroHealth System Logo
  • 50% reduction in time to deploy Giva's change, incident, problem, asset management and knowledgebase modules
  • 60% reduction in the 5 year Total Cost of Ownership (TCO)
  • Saved at least 1 FTE due to lower ongoing administration
  • Saved 1 week per month due to easy to use reports
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  • Increased to 90% achievement in meeting service level agreements
  • 70% reduction in generating reports and admin; eliminated 35 hours/month
  • 50% faster to create/assign a service request
  • 60% increase in information captured during the initial phone call
  • 50% increase in the number of service requests created due to intuitive design
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  • 80% increase in productivity by using Giva's dashboards and reports
  • 60% increase in meeting service level agreements
  • 50% increase in productivity by using Giva's integrated custom forms
  • 45% increase in the number of the calls logged due to Giva's intuitiveness and ease of use