When an organization is considering implementing a customer relationship management (CRM) system, they may be overwhelmed by the cost of software licensing, service for implementation, and training to get the team onboard. Understanding the ROI for CRM will help justify the initial spend. When researching ROI for CRM you may find the common statistic “according to Nucleus Research, every dollar you spend on your CRM implementation returns as much as $8.71 in ROI on your sales revenue.” However, calculating the true return for your organization’s CRM investment can often be complex and may consist of multiple factors.
The struggle of the calculation often comes from the ability to quantify the impacts a CRM has on your specific organization. “The true ROI for the use of CRM software is not always readily apparent and must be measured over a span of time. It cannot be measured by a standard cost analysis alone. Nor can it be thought of in purely mathematical terms.” (See BIGContacts reference below.) There are several factors to consider when evaluating the ROI for a CRM investment. Here are some ways a CRM implementation may impact your organization:
Arguably the prime benefit of implementing a CRM is productivity improvements that result in saving time. The ability to have your organizational data in a centralized location for your employees to access and update creates a sense of efficiency. A CRM also allows an organization to eliminate manual processes by implementing automation workflows that ultimately can save time and result in fewer things falling through the cracks. Workflow automation could be anything from email reminders for sales when they have an overdue follow up task with a customer to the creation of a notification when a new lead is assigned for outreach. These workflows not only save time but also increase lead conversation rates and overall customer satisfaction. This will allow your employees to spend more time selling and interacting with prospects and less time on administrative tasks.
Streamlining & Clarifying Business Processes
To effectively establish a CRM database an organization must evaluate and clearly define their processes and business strategy. “These processes can refer to practices that are focused on converting each prospect into a customer or retaining your customers by continuously engaging them with personalized communication.” (See Agile CRM reference below.) This process clarity allows for the CRM to be tailored to your lead tracking, sales stages, marketing strategy and overall business processes. Having defined processes and the right systems in place will allow for full CRM optimization. This will also provide clarity around business processes to current employees and well as new employees onboarding.
Creating a Centralized Database
A CRM solution creates a centralized location for employees to have insight into business data as well as leads, contacts, and accounts. The CRM provides insight into tasks, activities, emails, phone calls, meetings, and pipeline building. This not only creates a sense of accountability from an employee perspective, but also provides unity across an organization. When a change is made, the CRM information is automatically updated across all users, ensuring that your employees always have the most up-to-date information. When used effectively, your CRM can become a powerful tool to set future goals as well as provide historical information. This can become essential if an employee is out of the office or, in the case of turnover, a new employee is picking up where the previous employee left off.
Visibility into Business Analytics
A CRM that is used properly will become a powerful tool that contains good data. This data will allow an organization to better understand their customers and overall business. The data in a CRM system can allow an organization to analyze forecasting, revenue, profit, cost, demand, and customer behavior. It can also allow a business to understand trends within their organization and the markets they serve. It can provide visibility into lead source effectiveness, which can inform additional investment into the successful channels and eliminate the non-performers. It also can allow insight into the sales process to examine the time per sale, the number of deals closed across a specific period, as well as opportunity volume or pipeline building.
We recognize implementing a CRM is a large investment, so understanding the benefit to your organization is key. TopLine Results’ 20+ year track record demonstrates our experience in implementing CRM and digital marketing solutions. We strive to develop a deep understanding of your organization’s processes, so we can deliver a personalized solution. If you find yourself wanting to learn more about implementing a CRM or have a current CRM database you would like to improve, we would love to help! You can give us a call at 1-800-880-1960 or email email@example.com for a free consultation.
“How to Build an Effective CRM Strategy for Your Business.” Agile CRM Blog, 7 Feb. 2020, https://www.agilecrm.com/blog/how-to-build-an-effective-crm-strategy-for-your-business/.
“Measuring Roi for CRM: A Valuable Process.” BIGContacts, 20 Mar. 2022, https://www.bigcontacts.com/blog/measuring-roi-for-crm/.