PART 9: WHAT IS THE RETURN ON INVESTMENT (ROI) OF CRM?

Historical data is essential to calculating your CRM’s ROI.

Comparing data from before and after you implemented your CRM is the first step.

An all-in-one CRM solution can streamline your business processes and help drive up ROI.

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THE IMPORTANCE OF ROI

All businesses value their bottom line and are all concerned about their overhead costs. It doesn’t matter how much revenue you’re generating if you’re overhead costs are cutting into the profits.

Think about it: if you’re generating $25,000 in revenue (your business isn’t doing too well…) but your overhead costs for software and employees are costing you $24,000, then you’re only making a profit of $1,000.

So how can CRM ROI be measured?

MEASURING CRM ROI

Measuring the ROI of CRM can be difficult without any historical data.

To measure CRM ROI you need to take into account the cost of the software, training costs, maintenance costs, costs to migrate the system, and the time it takes your development team to get it up and running.

To measure if your performance has improved, you need to look at the time it saves your employees to update the system, and you can look at increases in sales, better customer satisfaction, and better performance from marketing campaigns.

By comparing your performance metrics and overhead costs from before you implemented the CRM and after, you’ll be able to see if you’re getting a good ROI from your CRM. You can find a spreadsheet here and a web tool here to help you calculate your CRM ROI.

OTHER FEATURES THAT CAN IMPROVE CRM ROI

If you’re looking to get a greater ROI from CRM, then you may want to consider a multi-purpose CRM solution that includes other features such as accounting and project management. You’ll be able to cut the costs of other solutions and increase productivity even more by being able to manage every aspect of your business from a single location.

CRM is so useful because it can be easily implemented into any business and can be used in any aspect of that business. One of the reasons for this is that good CRM services recognize how difficult tasks can be within a business and they create their software to be as user-friendly and efficient as possible.

HOW CAN YOU GET A GOOD CRM ROI THAT HELPS YOUR BUSINESS TO INCREASE PROFITS? HERE ARE A FEW OF THE WAYS:

  • By streamlining business processes through using one software solution. With one CRM solution there is only one software license to pay for each year per user.
  • Using a CRM solution means that accounting and quoting is made much easier. Outstanding accounts can be highlighted faster which means they can be chased sooner.
  • Time is saved by using one CRM contact management program as users do not have to keep switching between different applications just to complete certain tasks. This could even be shown by tracking all time spent via time and billing software. Now users can create a custom profile, generate a quote for the customer and fill in sales form – all through one program. That means that each user can take more orders each day and increase the business’ profits.
  • Providing salespeople with more data to better serve potential customers and increasing close rate and deal size.
  • Automatically score and assign leads to sales teams.

Social CRM

Projects & Deliverables

Online Collaboration

These are just a few of the ways in which using CRM can help a business to increase profits. But their overhead can be drastically reduced by just by paying for one software program and through increased efficiency that using such a program brings. Employees will no longer waste time juggling between different software applications, they can do everything to one single easy to use and easy to manage solution.

Now that you can see just how easy it is to increase profits and reduce overheads it should be time to use a CRM solution.

In Part 10: Still have CRM doubts?

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Learn more about using CRM Software in your business:

Daily paper reports getting lost in the shuffle? This construction firm found the CRM software solution

Their old paper-based daily reports system was adversely affecting this Australian engineering company’s efficiency. Through WORK[etc]’s powerful project management tools and extensive app integration features, you can keep track of project progress in real time, whether on-site or sitting in the office. Click here to read more.

Outdated systems can hold your business back. That’s why this IT service provider is looking to make the switch

For an IT service provider, this Kentucky-based company had stuck with the same old and outdated project tracking database. The hopelessly outdated system is hampering continued growth, however, so they’re scrambling to find a new CRM software solution. Click here to read more.