Increase the ROI of your CRM
A recent study found that ROI averages $5.60 for every $1 spent on CRM. But what if your current ROI is below the average? Below, we put together a list of ways to increase the return of your CRM.
Focus on Transparency
When setting up your CRM, enabling transparency between divisions should be a priority. Transparency increases accountability of your reps, saves time, and reduces errors by allowing everyone to have access to the same information. For example, in many companies marketing has no visibility into what happens with a lead once it is passed on to sales. When implementing a CRM, make sure marketing has access to data within your CRM so they can adjust their lead generation strategy accordingly. If you simply replace your current data silos with another set of data silos, you won’t see any cross-division benefits.
Choose Features Wisely
It’s also important to realize that you may have to invest more in your CRM platform to see higher returns. Out-of-the-box CRM systems often aren’t tailored to meet your unique business needs. Investing in additional features, integrations or customizations within your system can further increase productivity. For example, investing in a mobile CRM application increases the efficiency of your sales reps an additional 15%, while access to social features increases their efficiency by 12%.
Reconsider Your Reference Points
How are you measuring ROI? It’s possible that your calculations aren’t accurate because you’re excluding important costs or gains. ROI varies by industry, size of company, and the amount of customizations in each deployment. It’s worth consulting with other companies in your industry to see what their returns are like to determine how your CRM is really performing. Also, consider what other factors you can account for that could inadvertently change ROI.
Here’s an example: after deploying your CRM and automating some of the support and sales processes, you find that you can actually decrease the size of the support staff. Because customers are receiving quicker responses through automated systems, customer service ratings go up. This increases your bottom line because more referrals are coming in. You also have been able to automate quotes, so your sales reps are more efficient and have more time to close deals each week. Any change you can measure, such as these, should be incorporated into your ROI calculations.
Make Sure Managers Act on Data
Sales managers will need to take the information and reports from the CRM and not only analyze them, but then act on the information the reports give to them. For example, if they find that several leads are exiting the sales funnel at the demo stage, they should begin the process of changing the demo. If they discover that there are hundreds of leads that haven’t been touched in over a year, they should enlist marketing to create a nurture program and change processes that their sales reps follow. If they aren’t willing to take time to analyze reports or make changes based on them, they won’t be taking advantage of the power of their CRM.
These guidelines can be used before you begin adopting an application or post-deployment to improve your current system. If you have any questions about calculating or increasing ROI, contacts us here.