Many businesses measure the outcome of their CRM strategies only as an afterthought. They understand that a CRM system is a necessity for their business, and thus fail to set out quantitative goals or metrics for tracking hard results. The unfortunate consequence is that many businesses can’t prove their success or that they met their original, intended objectives. At some point, most organizations have a need or desire to measure the success of their CRM implementation. Goals and metrics must be quantified and benchmarked right from the start to ensure that the right data is captured and processes put in place to properly quantify results down the line.
To determine the impact of CRM on your organization, baselines for key business measures need to be established as a starting point that can be compared against once the solution is in place. This also helps ensure that benefits are correctly attributed to changes effected by the CRM system, rather than other factors. For example, increased cross-selling, cost reductions, customer satisfaction scores, or changes in first-call resolution could be used in the return-on-investment (ROI) analysis for a project.
Some best practices to follow:
- Define CRM success for your organization at the outset
- Pre-set corresponding metrics and data requirements
- Determine the business processes required to capture the data
- Determine user interface implications and accessibility requirements
- Plan for end-user training, especially if you are making changes to existing processes
- Consider data hygiene—ensure the data that’s captured is clean
- Scope the CRM project clearly and budget for all costs
- Secure management buy-in for any expansion to the original scope of work
Comparing actual results to established metrics will enable you to determine whether your CRM strategy is working, and how effectively. If results aren’t as expected, then further analysis should enable enterprises to determine why an approach isn’t working and quickly make alterations to improve performance. It also will enable companies to evaluate whether the original goals were realistic and to reset goals if needed.
Every organization has a different vision for their CRM project. Every vision brings with it a variety of business value propositions that can be attached to bottom-line results.
Though ROI definitions vary, CRM returns should be measured in terms of overall business value—how the system supports a vision and yields both hard and soft benefits—and not exclusively on metrics. Nonetheless, determining how success will be measured, benchmarking pre-implementation figures, and ensuring the system is set up to capture the necessary information are necessary to allow accurate calculation of quantifiable ROI metrics post-implementation.
Need help in defining and measuring CRM business benefits? ProAptivity specialise in the deployment of CRM solutions into small and medium size businesses. They are the Northern Ireland solutions partner for Maximizer CRM which offers both on-premise and on demand solutions with full Mobile CRM capabilities. For more information contact 028 90735630