Customer Relationship Management (CRM) solutions gain proven returns on the dollars spent even after applying the second, third or fourth phase.
Nucleus Research was one of the first research firms to study the CRM technology category in depth.
Nucleus Research is a firm that produces case-based technology research and offers advisory services. The company supplies real-world insight into improving technology value. For more information, visit the link.
|CRM is a growing software category since early 2000. Now the return potential is $8.71. This category invest millions expanding beyond its core.|
Their clients with customer-experience planning needs, consider sales, marketing and service departments important customer touch points included in this software. Today they need more. The CRM software category supports multiple touch-points and more. Expanding abilities include mobile platform, reports and dashboards, behavior profile, industry specific answers and so on. Many research firms such as Nucleus’s ‘Value-Matrix’ mirror the advancess this category of software produces to expand on their CRM value to customers
Should you invest in CRM?
The quick answer is yes. This blog’s headline provides a clear purpose or a return amount for every dollar spent: You will gain an average return of $5.60 for every $1 spent. Gartner’s study suggests all technology installations must be business (or dollar) purpose-driven
Many technology choices are available. Many choices offer small returns after reaping the greatest benefits with the first use. While CRM delivers much ROI throughout its life cycle, it is often strengthened by further spending. Firms earn triple-digit ROI while increasing employee yield with secondary applications such as mobile, social, marketing and reporting. By expanding on applications that run on top of existing CRM, companies gain better forecasting abilities and sales increases.
Investing in CRM increases revenues and cuts costs. Today, CRM makes use of the Internet or the cloud. It puts a focus on your team’s production. It pushes firms towards social and mobile applications, where your clients are today. Addressing fundamental business shifts is the goal of the CRM specialists that deliver a high ROI. This has driven CRM experts to support more rapid installations (agile approach) that improve over time
Many studies such as those from Nucleus found next applications of CRM with mobile and social increases salespeople’s productivity by 15% with mobile, while access to social means improved their performance by another 12%
These sames studies also reviewed how CRM makers’ consulting partners impact on ROI? Earlier generations of CRM projects needed a huge consulting and personnel investment, spread over a couple of years. Today we see more agile development, more step-by-step development, and just
a much faster time to earn value when using software partners.
What is the best technology fit for you? One size does not fit all. Each organization’s technology needs are unique. It depends on the way the company collaborates. Or how their sales team works. Or how they use CRM with other technologies such as Microsoft Office and Outlook. Most firms likely need change management as part of its CRM spending to ensure team buy-in before and after installation?
For example, your average younger worker has spent much time with technologies such as Facebook and can adapt to change more easily than the average older worker. Unlike the knowledge management days 15 years ago, today’s Facebook enthusiasts aren’t afraid to ask a question of a stranger based solely on the fact they have a similar interest or job title. In a virtual, remote world, that’s a normal way for them to collaborate.
An example is when salespeople get immediate alerts. They focus on building trust and rapport quickly, rather than putting out fires. Equally, if they have free time after a customer visit, they can use mobile CRM tools and geolocators to identify a prospect nearby.
Technology fit is multilayered. For instance, the return can be exponential when your CRM installation links to other technologies.
On its own, the return on website content management is $6.12 for every dollar spent; reporting/analytics/business intelligence is $10.66 for every dollar spent. When you link it with your CRM, the return is higher.
Fit success depends on many factors. Is the CRM choice correct for your organization? Did you use a CRM partner to help with implementation, as well as related change management? Is the CRM project business results-driven?
Do you want to build a more effective CRM program? Then identify the next, best step for your marketing, sales or service program by gauging your current program against the best practices. bEffective with more than 500 IT projects experience and a supporting cast of IT partners will help you gain stated returns.