With all major business investments comes a degree of scepticism- and it’s natural for that to be the case; you may have been bitten by an opportunity that was too good to be true in the past and don’t want to be fooled again. It may be that you’re wary because of the sums of money involved in a certain transaction and you’re unsure of its ROI.
But investment in CRM needn’t keep you awake at night; the technology has been around long enough to prove its worth and although it undoubtedly costs money to implement, the significant ROI has been demonstrated time and time again.
A CRM has to be understood as a capital expenditure; you do have to invest in it to begin with but, as with any CapEx, you invest to see a rise in profits. Used effectively, a CRM is bound to increase your company’s worth. The technology has a history of increasing sales productivity by as much as 34%, in turn increasing the amount of sales within a company by 29%. It is hard to argue with a system that can increase sales by nearly a third.
The right CRM can also help identify how efficient your marketing department is; offering insight into where marketing leads are being sourced from can help to point the department into the right direction to repeat successes.
What about CRM for other departments?
The benefits are not limited to sales and marketing; users of Microsoft Dynamics CRM have reported a company-wide increase in productivity by as much as 20% alongside a jump in their customer database size of 733%. Customer support also plays a part in increasing your business’ bottom line; over 80% of customers have at some point bailed on a transaction due to poor customer service. A CRM allows you to keep on top of enquiries coming into your enterprise to help minimise the chance of poor customer service and inattentiveness.
Admittedly, recent years have seen CRM technology move away from a capital expenditure into a monthly rental fee in line with operating expense. This shift has coincided with a shift from in house CRM systems to external cloud systems. Choosing to go down this road has additional benefits including:
- The ability to work on the go more effectively. Mobile CRM access is said to increase your sales team productivity by an extra 15%.
- Significant safety measures, known as redundancies, are a supplementary bonus of using a cloud CRM. Cloud data centres, particularly those used by Microsoft, are designed in a way that ensures that even if their primary and secondary power supplies fail, the data centre is able to remain online. Furthermore if the power completely fails or for some reason there is an inability to access data, your data is stored on separate centres which you are automatically routed to.The redundancy measures are far more significant than could be afforded by a single company, meaning that using the cloud guarantees higher uptime than using an in-house alternative.
- Outsourcing your CRM offers a valid opportunity to reduce equipment costs. No longer does your organisation require the most powerful internal equipment as the bulk of the processing takes place in the cloud.
Knowing the importance of remaining cost effective, it’s worth researching prior to the adoption of your CRM. Some of the more major CRM providers offer calculators that let you compare the price of their software with several of their competitors. In recent years, Microsoft Dynamics CRM has been the most cost effective solution, coming in at 74% less than Salesforce and Oracle.
Latest posts by Rick Lyle (see all)
- Senior Leaders: Improve Departmental Performance with CRM - March 30, 2016
- Senior Leaders: Understanding the Board’s Demand for CRM - February 24, 2016
- The 10 Most Important Questions to Ask When Selecting the Right CRM Partner [SLIDESHARE] - January 6, 2016