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CRM ROI  - Return on Investment of $8.71 per dollar invested

Growing_ROI_in_CRM.pngWhat is it worth to you? This is the essential question to ask when trying to understand the return on investment of CRM.

Find about the study that estimated the average ROI to be $8.71 for every dollar spent!

How necessary are customer relationships, referrals and communication between employees to the success of your business?

Choosing a CRM system should be held to the same standards as any other business decision.

It can be helpful to first define for yourself what you imagine a successful CRM implementation will do for your business. It should have a positive effect on communication with customers and integrate customer data to be easily accessible in the sales pipeline. Efficiency is both the means and the end. By having a consolidated customer information database the sales team can comprehensively work through the sales pipeline without missing any opportunities for customer engagement. An efficient sales team contributes to the bottom line increasing revenue making an effective CRM system essential for every customer-centered business. 

One of the major factors to consider is the return on investment of the CRM. When you purchase and fully implement a CRM system, how do you know whether it’s making a difference in your business? 

According to Nucleus Research case studies have found the estimated average ROI to be $8.71 for every dollar spent.

How much are you losing by not having a CRM system?

  • A qualified lead gets lost in translation because your sales staff has too many software applications to manage

  • Customer information is widespread and disorganized causing inefficient customer interaction

  • Revenue is not as high as it should be because your sales team cannot react to referrals fast enough

  • Your competitor move ahead because they have a consolidated database that makes their customer interactions more efficient

  • You don’t have the insight into the effectiveness of individual sales team members that could help you implement efficient sales strategies

There are several factors to consider when accurately calculating the ROI which essentially requires you to compare data between pre-CRM and post-CRM.

 ROI_Formula.jpg

It should be noted that a business who has spent more time using the CRM system will be better equipped to know their ROI.

There are a variety of online tools available to calculate your current ROI but in the end the real test of effective CRM is to know the change in your overall revenue. To do this simply, compare a period of your revenue from before the CRM implementation to a period after using it. This can be a quick and efficient way to know the bottom line of your investment.

Back to the Nucleus Research Studyaverage ROI to be $8.71 for every dollar spent.   So a $10,000 investment in CRM would expect to return $87,100.  Pretty good bet !

ROI_CRM_Math_by_scale.jpg

Example of other types of investment returns:

CRM_ROI_versus_other_investments.jpg


An investment benefits the business when you earn more than the investment cost. 

So is CRM an investment that will deliver a solid return? Absolutely.  

Download the Nucleus Research study - here


 

Use this link when ready to schedule a success with CRM Planning Call:    Select

 


Related resources:

How to track your CRM Investment

Value Creation - Determining the Worth of Well-Used CRM

CRM a business imperative - Now critical for every successful business

Get a CRM that's Big enough for your business

13 Way to boost sales results with purpose-built CRM

 

Topics:   Compelling Value Creation Results Gained with CRM Make your business work smarter Strategic Business development CRM benefits Trusted Advisor Customer-Centric Strategy ROI Infor CRM Well Used CRM Worth of CRM Success with CRM bpm'online CRM

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