One of the most difficulty 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 it 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.
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. On 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.
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:
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!”
ProAptivity specialise in the delivery of CRM solution. Supporting this we help organisation implement best practice with regards sales and account management through the use of CRM. To find out more, contact ProAptivity on 028 9073 5630 or email: firstname.lastname@example.org