From KMWorld magazine: How to measure the bottom line performance of KM systems.
Trotta provides some examples of how those seemingly soft benefits (of KM systems) can be linked to the bottom line. Employee satisfaction can mean less turnover, which in turn reduces the costs involved in recruiting and training new employees. Improved workflow can mean that a customers complaint is addressed in a timely manner and that the customer continues doing business with the company. And having greater knowledge about customers and prospective customers can mean less money spent on marketing and promotion because the message can be targeted to specific demographics. “Customer satisfaction and retention, price premiums and cross selling are all very measurable, Trotta say. Another way to measure the value of knowledge is to evaluate what it would cost to purchase the same information from the outside. Trotta explains, What if your salespeople didnt share information on their customers and prospects, which happens frequently, and you had to buy a database? Get a handle on what that knowledge is worth on the free market.