One of the most difficult element when discussing CRM with existing or potential clients is quantifying the value that CRM brings to an organization.
It’s somewhat tricky since putting a value on something intangible as CRM is always going to be subject to a few assumptions. Also each client uses the same CRM software in very different ways.
However the value that CRM brings can be clearly divided into two main areas. These are: functionality and data quality.
Functionality – what you pay for
Functionality is actually simple to put a price tag to it. It’s what you pay your CRM vendor or provider. Whether it is license cost plus operations expenses for an on-premise setup or just a simple pay-as-you-go per seat for a cloud based model – it’s a simple price. Someone in your company (e.g. a controller) can put a clear price tag on what you are spending on your CRM.
However, in our experience, most CRM deployments are under utilised. Typically the CRM solution is deployed in a single department, mostly sales. However, greater benefit of the CRM can be realised if it is rolled out to other departments, marketing, customer services and back office, to name the obvious. Within each of those deployments, clients typically only utilise a some percentage of the application. Greater training and regular reviews with your solutions partner can greatly increase the value that CRM brings.
Data quality – what you work for
On the other hand, just because you’re spending money on CRM software doesn’t mean that it’s worth anything. Day one of installing (or setting up), your CRM will be void of any data and pretty useless to most people. So long story short – the data (or quality thereof) is a key dimension to the value of your CRM. The data quality is the result of your processes and discipline on how you manage and use your CRM.
The cost of bad data to an organisation can be substantial. For example,
- Wrongly using contact data for deceased contacts or gone away contacts. This can damage your brand and waste resources.
- Holding on to personal data longer than is necessary for the purpose it was processed. This can result in an organisation falling foul of GDPR legislation.
- Collecting multiple duplicate data sets. This can skew decision-making, corrupting the customer insight even wasting resources.
Value = Functionality x Data Quality
Assuming that the two key factors are functionality and data quality, determining the value that CRM brings is a simple multiplication of the two, or the area denoted by the rectangle if plotted along two axes:
That leads to a pretty obvious thought, which seems to get neglected every now and then:
The value that CRM brings can also be realised in the business intelligence data that it can generate. CRM is critical business tool that enables data-driven intelligence. It helps eliminate non-revenue generating activities. and optimises resource productivity
Investing into the data quality pays off!
While CRM vendors focus on functionality, data quality is mostly up to you and your team. Still it’s key to understand where the overall value stems from to get the optimal return for your efforts.
Or in short: “Fill your CRM and keep it up-to-date!”
How ProAptivity can help realise the value that CRM brings
ProAptivity can help your organisation improve the value that CRM brings. ProAptivity are an independent CRM solutions provider. We focus on the implementation, training, and support of highly customised CRM software solutions. Our CRM software supported by our sales training provide customers with the tools needed to deliver successful sales process management.
Fundamentally, we help organisations embed CRM best practice throughout their organisation. This helps organisations become more competitive, customer focused and ultimately more profitable.
If you need help in understanding why my business needs CRM, maybe some of our eBooks could help! Alternatively visit Maximizer CRM for more information. Contact us today in Belfast on 028 9099 6388 or at our Bedford office on 01234 214004. Alternatively email us on email@example.com. Contact us today for a free CRM consultation that will assess if your business is CRM ready.