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Make your business work smarter, Better Decision Making, CRM benefits, CRM System Importance,

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12 Min Read

CRM a business imperative - NOW critical for every successful business

CRM enables you to:

Grow your revenue share within your existing customer base

  • Understand the true cross-sell and up-sell opportunity of every one of your customers in order toIts_Time_for_Change_-_Status_Quo.jpg
    maximize the profitability of every relationship.

  • Dramatically reduce your cost-per-lead by delivering highly targeted marketing communications to specific customers or customer segments.

  • Cut the amount of time and cost it takes to resolve service issues without compromising an exceptional service experience that keeps your customers loyal.

  • Provide decentralized empowerment to your customer-facing staff in a way that will drive their productivity and effectiveness while still retaining central control over headline resource, performance and budget management.

 Capture new business at a far lower cost-of-sale than was possible previously

  • Lower your cost-of-sale by always ensuring that your sales team is focused on the opportunities that are most likely to close.

  • Dramatically reduce your cost-per-lead by delivering highly targeted and consistent marketing messages to specific prospects or market segments.

  • Introduce marketing accountability, so you can ensure that you are getting the right level of return from every marketing dollar that you spend.

  • Ensure consistent processes are followed, with clear key performance indicators (KPI) which create solid discipline and greater predictability for sales and service personnel.

  • Strip administration out of your organization, so there’s less paperwork, errors and task repetition, and less cost as a result.

  • Provide decentralized empowerment to your business development staff in a way that will drive their productivity and effectiveness while still retaining central control over headline resource, performance and budget management.

Why now?

Your customers and potential customers are facing identical cost pressures, and they have changed their purchasing patterns accordingly. In many cases, they are spending less than before. But in all cases, they are looking for even greater value for money and being far more discerning about potential purchases and potential suppliers.  Today, businesses are likely to experience significant and growing trading pressures as each month passes.

As a result, one of the biggest potential mistakes a company can make at the moment is to continue in a “business as usual” mode. The “cost of doing nothing,” therefore, is significant. The table below highlights the potential cost of inaction through a series of practical examples. It also examines some of the underlying issues which may be affecting a company like yours and discusses how CRM can help to address them.

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 $500,000 rather than pursuing three, well-qualified deals worth $60,000 each [$180,000 opportunity cost]

  • At 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 revenues]

  • At a company, 25% of customer support requests; equating to two FTEs earning $25,000 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% net decrease in inbound sales inquiries from 80 per month to only 56 [$2.02m in lost revenues over the year]


Underlying Issues

  • 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-opportunity 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 business are in growth/decline and defining focus accordingly

 Learn more about Business Drivers of CRM...


 

How CRM Can Help

  • Enables you to leverage further revenue opportunities within your current customer base

  • Ensures your sales, marketing and customer services resources are being used to maximum effect

  • Reduces your opportunity cost

  • Reduces your cost-of-sale

  • Reduces the cost of your marketing leads

  • Ensures you meet customer service level agreements

  • Minimizes administration 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 attraction

  • Ensures that your investments are all aligned to revenue development

  • Prepares you for the economic recovery

Learn more about CRM Solutions we have solved.

CRM should not be viewed as discretionary initiative; it is now an operational and financial imperative for all SMBs.

 

Get Started with Success with CRM

Related articles:

18 Requirements for Business Success with CRM

Business Issues Solved with CRM

How to track your CRM Investment

10 Commandments of CRM

Calculating the ROI of CRM – a Business Leader’s Guide

CRM Software benefits that deliver ROI

 

Original Publication from Sage Saleslogix - CRM: A business Imperative for companies in the Global Economic Downturn

Topics:   Make your business work smarter Better Decision Making CRM benefits CRM System Importance

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