A US department store merchant, John Wanamaker said “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” – a quote that has become embedded in marketing in recent years.
A report from The Chartered Institute of Marketing’s Marketing Trends Survey revealed that many marketers believe that Customer Relationship Management delivers the a greater Return on Investment and advertising has been identified as showing the worst return giving.
The survey, conducted for The Institute by Ipsos MORI, revealed that a quarter of marketers (24%) think the best ROI is delivered by CRM activities, particularly among those working in financial services and other services firms (31%), and those in the technology and telecoms sectors (30%). Second highest in delivering good ROI, with half the number of mentions (12%), is public relations.
Advertising, excluding online, is most widely seen as delivering the worst ROI with nearly a quarter (23%) of marketers rating it as worst. This is higher among those working for technology and telecom companies 38%. Second worst performance is for sponsorship with one in nine (11%) considering it as delivering poor ROI.
Why do CRM systems see a bigger ROI?
There are several measurable benefits in personal and process productivity from implementing a CRM system. They include an increased sales productivity resulting from better visibility better departments and integration with such applications as Outlook, Accounting Systems, Sales tools and Marketing data. This can help improve cross-selling inside sales and customer-service teams because of better access to reporting tools and customer account details.
Other benefits to an organisation who uses a CRM system were lowered costs of sales because of streamlined processes and operations, a 50 percent acceleration of sales conversion, and a resulting revenue gain because of improved collaboration. The report also found a productivity savings of 16 man-hours per month because of better reporting tools, data consolidation, reporting automation, and dashboard facilities.
With a CRM system in place organisations can achieve marketing cost savings, more real-time insights and improved campaign management due to improved analytics. Marketing departments are able to specifically target customers and manage data more effectively ensuring more successful campaigns and a greater ROI.
Like to know more about how a CRM system can help your business? Get in touch – Email Niall today at email@example.com.