How do you know if your CRM software is providing you with the benefits you hoped it would? Specifically how do you know if you are seeing the ROI you hoped for? For other investments ROI is more obvious, CRM makes things a bit more difficult but it’s not impossible to do. Seeing your CRM software ROI requires looking at more than just the numbers, you have to look at the non-financial aspects too. Below are four considerations to get you started:
1. Annual Revenue
Prior to implementing your CRM software, what was your annual revenue? How has it changed since implementing the new system? If you are seeing a decline or no change in revenue…you could argue that your CRM system is not providing much of an ROI. On the other side, if you are seeing improvements in revenue since the implementation, you might want to credit some of that to your CRM system. Of course, you want to factor in any major changes to the business, industry, and economy as they affect your revenue.
2. Sales per customer
One of the benefits CRM brings with it is improved communications with your customers from both a consistency and quality perspective due to the data and history you compile about each customer. This increase in data and communication should allow you to encourage more sales to your existing customers. This could be more sales of the same product, cross-sells, or up-sells due to more effective marketing messages and product pairing.
3. Customer Retention
The time and cost associated with brining on new customers really adds up. Not all industries and businesses rely too much on customer retention, because it doesn’t make sense. For those that do measure retention, you should see an improvement after implementing CRM software.
With quick access to customer information, easy reporting, automation, and other time saving features, your sales, marketing, and customer support teams should not only be able to do their job better, but they should be able to do it faster. Have you seen an increase in sales calls? An improvement of how successful those calls are? What about an increase in support issues taken care of?