Cost of Doing Nothing is Significant
Previously in Turn that frown upside down with CRM for your business growth... we introduced you to some things that you can do to uniquely position your business with CRM to assist you in these challenging market condition.
One of the biggest potential mistakes a company can make during these turbulent times is to continue with a 'business as usual mode'. The 'cost of doing nothing' is significant.
The Cost of Doing Nothing - Examples:
- A sales executive spends six weeks closing a $50,000 opportunity with a new customer rather than spending two weeks closing a similar opportunity with an existing customer [$100,000 opportunity cost].
- A sales executive with a base salary of $80,000 per year spends 10 hours per week on sales administration [$20,000 direct salary cost per year].
- A sales executive focuses exclusively on a large but poorly-qualified opportunity worth $5000,000 rather than pursuing three, well-qualified deals worth $60,000 each [$180,000 opportunity cost].
- A company with 400 customers on $10,000 per year service contracts, a 30% increase in call queuing time translates into a 15% increase in non-renewal of service contracts the following year [$600,000 in lost revenue].
- At a company, 25% of customer support requests; equating to two FTEs earning $25,000 each per year, could be handled on a self-service basis over the Web [$50,000 direct salary cost].
- At a company where an average deal is worth $35,000 and the sales team closes one-in-five leads, lower than anticipated demand generated by traditional marketing activities translates into a 30% new decrease in inbound sales inquires from 80 per month to cost 56 [$2.02m in lost revenues over the year].
- Difficulty identifying quick win, cross-sell and up-sell opportunities within your current customer base.
- Lower yields from traditional marketing activities and fewer inbound leads.
- Lower lead-to-opportunities conversion.
- Fewer sales opportunities in the pipeline.
- Too much time spent on poorly-qualified opportunities.
- Lower sales conversion rates.
- Inaccurate forecasting.
- Too much time spent on administration.
- Limited visibility on the real-time performance of sales, marketing and customer service functions.
- Shortfalls in customer service delivery.
- Difficulty identifying which areas of the business are in growth/decline and defining focus accordingly.
- Other business issues addressed by a CRM solution...
How CRM can help
- Enables you to leverage future revenue opportunities within your current customer base.
- Ensures your sales, marketing and customer service resources are being used to maximum effect.
- Reduces your opportunity cost.
- Reduces you cost-of-sale.
- Reduces the cost of your marketing leads.
- Ensures you meet customer service level agreements.
- Minimizes administrative costs.
- Protects your net margin.
- Protects and grows your revenues.
- Enables you to pinpoint underlying issues and take corrective action accordingly.
- Reduces the potential for customer attrition.
- Ensures that your investments are all aligned to revenue development.
- Prepares you for the economic recovery
- Other benefits of CRM that matter....
My role is:
In a downturn, therefore, CRM should not be viewed as discretionary initiative - it is now an operational and financial imperative for all small and medium sized businesses.
Next time we'll delve into more understanding of how Sage SalesLogix CRM solutions can help your organization....
Interested? Give us a call: 269-445-3001 or Start a conversation.....