The advantages of customer relationship management (CRM) software are endless: increased sales team productivity, stronger customer relationships, enhanced communication, and reduced costs. CRM software enables companies to take the lead in the sales process, close more deals, and develop lasting, long-term relationships with their customers. While it’s easy to see the benefits of CRM, many companies are still hesitant to invest in the software, citing its cost as a major deterrent.
The truth is, CRM software is worth the cost. The return on investment (ROI) of CRM software is significant; however, many companies do not know how to measure the software’s effectiveness. As a result, they feel as if they aren’t “getting what they signed up for”. In order to see what CRM is actually doing for your company, you need to learn how to measure its effectiveness.
We’ve created a few simple steps you can take to measure the effectiveness of your CRM software:
- Analyze your customer acquisition costs.
The best thing about CRM software is that it cultivates old relationships while bringing in new customers. All customer data is stored in one place, so you have access to all of the information about a single customer and can determine the best marketing strategy for bringing in certain clients. All of this information is only a click away, allowing you to begin customizing initiatives to win-over your old (and new) customers.You will know if your CRM tools are experiencing a high ROI if you don’t have to test marketing strategies to see if they work. With a data-driven approach, you can ensure that your marketing efforts are helping your business retain existing customers while enticing new leads.
- Take a look at how CRM tools improve your revenue.
CRM software personalizes a company’s interactions with its customers. In fact, a sure sign that your CRM software is achieving a high ROI is if your sales numbers have increased after deploying your CRM system. If your customer relationships are lasting longer and your clients are making recommendations to their friends and colleagues, your CRM tools are definitely benefiting your business.
- Compare software and subscription costs to incoming business.
You most likely know what you are paying every month for your CRM software, but have you compared that cost to the number of new clients you are bringing in every month? In order to get the highest possible ROI from your CRM software, you need to pay off the initial setup costs quickly and see your revenue numbers continue to climb. In fact, if your CRM solution is doing just that, you may even need to up your investment to accommodate for higher amounts of data.
Are you experiencing a high ROI from your CRM software? Stay tuned for more CRM best practices on our blog.
If you are not currently employing CRM software, consider giving Sage CRM a try. Sage CRM is designed to help small and mid-sized companies build lasting, more profitable relationships with their customers. If you think your business could benefit from Sage CRM, give us a call today!