Development Cost of Divergent CRM and other VSF Software Updates

By Nick Ray Ball 19th Feb 2016

This page presents a spreadsheet that shows the 93 different components within the Villa Secrets software, which when combined increase profits by 400% over three years.

The Estimated cost is $3,000,000 (for 62,000 development hours.)

This section is accompanied by the spreadsheet ‘Cost of Divergent CRM and other Software Updates’ See it here, or download it here which one can find in the ‘Business > Cape Town Luxury Villas.com’ section of http://blog.villasecrets.com

We present two accompanying Videos, one long with details on all updates and one short that looks at the very basics. This is the shorter 12-minute presentation.

Both videos refer to the following pages from the Villa Secrets Business Blog:

1. Asset Value of Cape Town Luxury Villas and Supporting Systems
2. Magic Keywords
3. VS Mobile
4. Magic Menus
5. Divergent CRM
6. Cape Town Luxury Villas Strategic Growth Plan

In this above video we see the estimated development cost of the Divergent CRM and other software considers 93 different components that lead to an increase in turnover or a decrease in cost.

Some components that increase turnover have an associated cost, such as the Email Remarking campaigns to previous clients, enquiries and emails addresses captured can increase turnover by 12% for a 0.1% increases in cost to VS franchises and members. Another example is the creation of advanced client and owners CMS’s which can increases turnover by 16% but have no associated cost for the franchise.

However, we start with ASTA membership and footer and then AdRoll which, is not actually a software system cost, rather a marketing costs. And in this case we suggest that a 15% increase can be made from a 6% increase in costs, if optimised correctly.

In terms of software , we are looking specifically at improvement made in the following systems: Magic Keywords + Magic Menus + Enquiries System + CRM + Email Marketing + Clients & Owners CMS + Booking Systems + Financial System + Marketing Platform + Content Marketing + Analytics + Sienna-bot + Hospitality + Live Chat + Experience Africa Safari Systems + Financial Predictions + Tutorials and the Tutorial Game

In conclusion we account for 31,000 hours of development considered over three years.

Cost: £1,000,000 or $1,500,000 or ZAR 23,000,000

 

However, it is likely that the hours will double, due to new considerations found along the way.

Eventually leading to about 200 different parameters that create a direct increase in turnover or provide a cost saving. And quite the best system for a vacation rentals company by a country mile.

Cost: £2,000,000 or $3,000,000 or ZAR 46,000,000

 

In addition Villa Secrets monthly costs could equal $235,000 a year ($164,000) (ZAR3,600,00) for software licencing. Note this is a Villa Secrets cost not a franchise cost, the cost to each franchise or member would be no more than a few Sales Force Sales Cloud Enterprise licences, currently £1000 per user per year, however this price comes down the more franchises and members Villa Secrets has.

For companies that are very small we are creating a version that can be used without the need for a Sales Force licence.

For more details, please watch the detailed video,
Cost of Divergent CRM and other Software Updates (82 Minutes)

Lastly as it is relevant to this section and in particular the spreadsheet, we re-present the Divergent CRM – Introduction and the ‘Cape Town Luxury Villas Normalised Profit Spreadsheet’ video which looks at the increases in efficiency, saving made and new marketing concepts presented on this page