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Key CRM Benefits - varied and measuredCRM-Benefits-measurement

The systematic use of CRM applications has been well-established to provide many benefits to organizations that want to automate their sales, marketing, and customer service functions. The most compelling benefits of a successful CRM implementation include the following examples:

  • Better sales/marketing information - Customer names, customer background, customer needs, and competitive positioning are some of the data types collected as a result of implementing a CRM system.

  • Improved productivity - Effectively targeting market identification, reducing the number of cold leads, providing accurate on-the-spot quotations, accessing inventory availability quickly, and entering orders directly from the field help to shorten the sales cycle.

  • Enhanced customer "Care" - More time is available to spend with customers due to a sales department's reduced administrative workload, and ability to monitor customer service levels, and the ability to highlight existing or potential customer service problems and react more quickly to customer needs.


Improved customer retention/loyalty has become an increasingly important objective for most organizations, and an area that is directly related to the benefits of CRM.  According to Antony Young and Lucy Aitken, authors of Profitable Marketing Communications: A Guide to Marketing Return on investments, corporations in the US. lose about one-half of their customers. An effective CRM system will help a company retain more customers over time. 

CRM-Business-FactsFor those who like hard numbers, ISM, Inc. and the Insight Technology Group have conducted studies of CRM implementations, confirming that the following levels of benefit can be achieved:

  • A minimum 10 percent per annum increase in gross sales revenue per sales representative during the first three years of the system - This gain occurs because field personnel improve their efficiency (more "batting time" to call on customers and implement strategy) and their effectiveness (improved quality of their sales calls because personnel are more knowledgeable about their customers).

  • A minimum 5 percent decrease in general and administrative cost of sales during the first three years - This takes place because field personnel (and the company) have no need to send costly literature and information in a shotgun approach to existing and potential customers.  Instead, field personnel (and the company) can be selective about sending specific promotional materials to customers. Effective target and nurturing marketing occurs.

  • A minimum 5 percent increase in win rate for forecasted sales during the first three years - This gain results when sales organizations select their opportunities more carefully, drop out of potentially bad opportunities earlier, and concentrate on those opportunities with a high likelihood of closure.

  • A minimum 1 percent margin improvement in the value of a deal over the system's lifetime - This gain is realized since sales personnel are working closely with a carefully selected group of customers who place as much emphasis on value selling as on discounts, and sales organizations tend to discount less frequently.

  • A minimum 5 percent improvement in the quality rating provided by customers - This gain is a result of having happier customers who are getting the information they need more quickly, who are receiving better service, and who are building on the relationship marketing approach that sales personnel are now able to offer.


Before deciding whether CRM is right for your organization, you should review all the potential benefits of CRM in detail.  From our experience helping companies to automate customer-facing functions in a CRM system, we have learned that senior management needs detailed evidence of measurable benefits to justify what may grow into a large capital investment, plus the investment in time, resources and staff.


There is good news:

A growing number of tangible and intangible benefits associated with CRM are available, and there are specific ways to measure them.

What percent of customers will be leaving your business this year?


Topics:   Reimagine the way you work What is CRM Results Gained with CRM Make your business work smarter

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