CRM ROI - Return on Investment of $8.71 per dollar invested
What 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.
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 Study - average 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 !
Example of other types of investment returns:
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