According to a study done by Nucleus Research, it was found that for every single dollar spent on a cloud based CRM system , the return is between $5.60 and $8.71.
Nevertheless, there is also a bad news.
According to another research done by HubSpot, it was established that 40% of sales reps do not even use this online lead management software to manage leads and prospects but instead relies on Rolodex cards and Excel spreadsheets to manage their sales funnel and cultivate customer relationship.Every single dollar spent on a cloud based CRM system, the return is between $5.60 and $8.71. - Nucleus Research Click To Tweet
Now, how can this be possible when statistically 47% of the sales teams that use a cloud based CRM say that they registered a positive impact on customer retention by using CRM for their businesses?
Part of the problem in this long-standing self-contradicting confusing statement lays in the horror stories we hear about companies that did unsuccessfully spend thousands of dollars on the promise of improving productivity with the help of a CRM for their sales teams.
We all know any CRM is more than just a sales tool.
This means a CRM database serves as a data warehouse that centers on client interactions, so that marketing, customer support, billing, and other departments should be able to use its centralized repository for collecting and retrieving information.
Cloud based CRM software should also offer automation that effectively improves workflow and permits a seamless connection to all the front and back-end systems in an organization.
However, the golden key for this cutting-edge tool is that you have to use it right to garner your ROI.
In this article, we will look into CRM ROI and provide the readers with certain pointers on why investing in cloud based CRM software like ConvergeHub can make all the difference for your team.
Creating a business case for your cloud based CRM software got you this far. However, after go-live of the CRM users must find the impact this new online lead management software has on all the departments that use this platform.
Forrester (the global research firm) is one organization that has provided us a framework of how we can do this. Their methodology, which is known as ‘Total Economic Impact’ views on the sales outcomes as weighted against money and time spent on the CRM.
Forrester’s TEI methodology typically looks at whether sales increased or closed faster via improved lead generation strategies.
Forrester also evaluates the user-friendliness of the cloud based CRM software and how scalable is the CRM as the company changes and registers growth in employment over time.
Here are some of the questions Forrester use to measure their CRM ROI, which includes:
CRM implementations are never identical. Therefore, as you can only see an ROI from your CRM if your employees use the platform, this human variable has a direct impact on CRM ROI. Hence, if you take two organizations with competing offerings from the same industry and provide them with identical CRM platforms, it is highly likely that the experiences of these two companies will never be similar. Consequentially, so shall be the differences in their ROI.
With that being said, let us quantify some of the steps that are necessary to set up a new cloud based CRM system for success in any organization, that include:
Recovering what you pay for your cloud based CRM software means choosing the right CRM software and optimizing the platform to fit your business.
Recently we hired a research agency to conduct an analysis of CRM ROI for ConvergeHub CRM. Let us look at what they discovered about ConvergeHub online lead management software, which is a FinanceOnline award-winning CRM for small businesses:
According to the research study, the potential ROI of ConvergeHub cloud based CRM saw a number of business benefits, like reduced CRM maintenance and infrastructure costs, and quicker time-to-market.
The report further elaborated that:
Ultimately, the research stated that ConvergeHub has an overall 63% CRM ROI rate, a figure that places ConvergeHub as a highly rated SaaS-based online lead management software , which is worth considering, as it helps you to get the most for your investments.