It’s no secret that the initial enthusiasm for CRM systems is beginning to wain – and businesses are becoming increasingly sceptical of what Customer Relationship Management can actually do to support their objectives and growth. Why invest in CRM? How do we measure the ROI of CRM? When will that ROI be visible?
Whilst it’s understandable that these questions would arise, there is more than enough information to answer them…
Whilst revenue increases are, of course, a welcome benefit of CRM, when it comes to making the business case for it, it’s often easier to secure buy-in by highlighting the demonstrable cost savings rather than potential revenue gains. This is due to the fact that operational efficiencies are much more tangible – and often see quicker wins.
- Campaign expense reduction – As marketers make use of the information available to them within their CRM, their campaigns become much more selective and targeted as a result. Consequently, campaign volumes declines and expense-to-revenue ratios fall (whilst campaign success rises).
- Process improvement – Thanks to automated workflows available with forward-thinking CRM systems such as Microsoft Dynamics, businesses can benefit from shorter sales cycles and fewer manual errors – all of which contributes directly to your bottom line.
- Lowered cost of sale – As both sales and marketing teams have a single point of access to contacts, calendars, meetings, buyer history, follow-up tasks and more, they are better equipped to sell more effectively – and efficiently. It also means that everyone is adhering to the same process and focusing on those leads that are most likely to close.
Customer value improvements
Cost savings and revenue increases are undeniably beneficial – but the best evidence of a CRM system supporting a business’ objectives revolve around the customers themselves.
- Lifetime value – This can be accurately measured within a modern CRM system, such as Microsoft Dynamics and, more importantly, it can highlight opportunities to increase this value, based on a lead’s buying history, recent interaction, etc.
- Improved customer satisfaction – Thanks to the in-depth information available within a CRM of a lead’s individual history with your business – plus integration with social media platforms now available as standard with Microsoft Dynamics – never have Sales and Marketing been in a better position to improve customer satisfaction and retention.