We usually think of “buyers remorse” as related to a car or home purchase. However, in some cases, there are cases of buyers remorse when a company takes the leap and buys a customer relationship management (CRM) package.
According to Gartner research, the global CRM market is expanding dramatically. Businesses are spending $18 billion a year on CRM implementations and the industry expects a major return on investment (ROI) to be very high.
CRM And Your Customers
Most likely you will have settled on a strategy for your customers and look for a CRM software program to compliment how you want to integrate the two.
While you are working this out, at the same time you want to be considering how you will get the ROI from using CRM software.
There are several things you need to do first before you can start counting up your ROI, suggests Forrester Research:
- Define your objectives-Are you looking to acquire more your current customers’ spending history for the product category?
- How can you improve sales? Are there ways to discount packages with certain customers?
- Is there a way to use your categories to attract new customers?
Save your sales people for the most profitable of your customers. The place for them to be is in the field, knocking on doors and talking to your customers. There is nothing better than the old face-to-face. That is how they are going to generate revenue and build your ROI.
Another important piece of beginning to estimate your ROI is know how to calculate your expenditures. What is your exposure to customers whose profits are marginal? Consider reducing unproductive time with marketing and sales. Instead of face time for those customers you can service them via the Web.
Utilizing your CRM, you can deploy a part of your team to spend a few minutes each day fining leads for your sales people by using the “automatic lead capture functionality of CRM.”
What Are Your Efficiency Goals?
When calculating your ROI, be specific about what goals you are considering? Without those costs included in your assessment, your numbers will be off. Don’t forget to include maintenance and license management costs.
In considering your supplier, be very careful to read the fine print. Be sure to factor in upgrades and supplementary options. Knowing what your costs are going to be is key to figuring out your expenditures.
The Real Costs
Factor in the cost of the hardware, software and subscription into hardware, software, and subscription. These are on top and easy to see. However, there are many other costs that must be calculated up front and ongoing.
- Hardware is a mandatory cost. You need to factor in your fees charged for the use of the application.
- Add in extra data and file storage fees as your usage increases.
- What are the licensing fees for individual user types
Ongoing Cost Commitments
The implementation process is just the beginning. As with all software programs, there are maintenance costs that go with it. The long-term implications for managing these costs is part of your package in figuring out the investment against the ROI. Although cloud technology is more cost-effective, there are still internal expenditures attached to the system to meet the program needs.
When you finally integrate your CRM expect some hiccups. Any time to add a new infrastructure you know there will be issues. Be sure you have prepared for lack of efficiency until all your departments are familiar with the new program. Don’t begin counting dollars until your company is fully trained and taking advantage of the tools available to them.
How do you know if you bought the right package, installed it properly, trained your staff to maximize the tools?
In a recent survey of CRM decision makers, Nucleus Research found that successful projects generate a return of up to $5.60 for every $1 spent. They measured this return in different ways, especially for the improved productivity of users in key departments, which was up to 15 percent for salespeople.
When you are ready to move to CRM, be sure to contact us and let us help you get the most out of your project.