It goes without saying that the way in which we conduct business has changed over the last few years or so. The growing use of technologies has accelerated that process as many tasks done manually previously can now be done at a click of a button. As businesses expand so do their requirements for more streamlined ways of working using digital tools.
It is vital that businesses integrate such systems into their processes to not only retain a competitive advantage but to also keep up with the competition.
In most cases, most businesses start on their journeys towards a digital transformation by selecting a suitable CRM system. The use of such a system can help to increase the levels of automation in gathering data so that all the teams across your business can make better decisions based on accurate insights.
As well as this, being able to seamlessly integrate with other useful tools such as Microsoft 365 and its AI capabilities can help to not only build but also to maintain customer relationships. In simple terms, CRMs help businesses to put the customer first and increase productivity to increase sales.
To put things into context with statistics and figures around CRMs, the global CRM market is growing rapidly with predictions expecting it to be worth more than $146 billion by 2029.
It is safe to say that businesses are moving in the right direction by embracing technology. This has already helped many to improve usability, functionality and the overall user experience of CRM solutions which has meant that businesses are gaining the full value on their investment.
In terms of what returns businesses can expect from investing in a CRM system, businesses can earn up to £8.71 for every pound spent according to Nucleus Research. As well as this, if businesses take this one step further and integrate CRM with other applications then they can expect to see around a 20% uplift in overall productivity as a result.
From the above, it is pretty clear that investing in CRMs are extremely beneficial for businesses. This also poses the question as to why so many aren’t choosing to implement them? Granted, most of the reasoning revolves around the initial investment required at the start as benefits aren’t immediately obvious.
In addition to this, a lot of the benefits gleaned from using a CRM system largely depends on how the business uses them. This goes far beyond the technology as the results depend on the CRM implementation across the processes of the business.
When it comes to making a suitable investment decision, there are tools to help you calculate potential CRM returns or ROI such as Forrester’s Total Economic Impact (TEI) that can help you balance the numbers and provide you with an estimated figure.
However, it is important to note that using the calculations above are only an estimate and not something that is guaranteed as these results largely depend on how good your business data is. As well as this, some costs are hidden when it comes to your business operations and some benefits that come from using a CRM solution are sometimes hidden and hard to put a number to.
To put this into context in the form of an example, how do you calculate the costs associated with running your business off Excel spreadsheets? How much money will your business make from responding quickly to customers or making faster decisions?
However, it is important to note that ROI on CRM is one of a number of different ways to better measure its performance benefits. The main reason for using a CRM system is to help your business take selling to the next level. The more you engage with leads the higher chance you have of converting them into customers in addition to keeping your existing ones.
Furthermore, a business needs to sell more or reduce costs in one way or another. So to do the maths on this, the higher revenues you gain, the more you will gain from investing in a CRM.
I have invested in a Microsoft CRM, so what returns can I expect from this in the first 5 years?
Increases in sales volume:
- Sales volume: Increases in sales closed and their value over time.
- Time per sale: Your sales team are working faster meaning it's quicker to convert opportunities into sales.
- Number of deals won: Improvements in the overall number of leads becoming customers and closing.
- Lead source: Much easier to track leads which leads to better sales channel performances.
- Net revenue: Identify and sell to new customers by exploring other parts of the market.
Reduced cost of sale:
- Sales admin time: Your sales team will be spending less time on admin and more time on selling.
- Upsell rate: Existing customers will purchase more add-ons and additional products/services.
- Customer acquisition cost: Acquire new customers for less money.
Intangible benefits
- More accuracy on tracking and recording of both customer comms and acquisition.
- One central point for all your customers, leads, sales and opportunities.
- Better collaboration between sales and marketing.
- Better automated routing of work across employees.
So, what are the minimum returns from CRM?
Putting your customers first is vital to improving both sales and profits. Don’t forget, a CRM is a powerful tool that will allow you to both assess, manage and automate parts of your business processes to keep your customers at the forefront of your mind.
New and improved features of the software will allow both sales and marketing to work together more to convert leads and to be more proactive when it comes to marketing and selling strategies. Even in the worst-case scenario your business will become much more efficient and productive with a new CRM than you were before.
Next Steps?
If you are a business that is looking to invest in a new CRM system with Advantage then please do give our team of CRM experts a call today to discuss how we can help you get up & running on our Quick Start Microsoft CRM package.
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