Alexa What Is CRM ROI Using Cloud Based CRM System

What Is CRM ROI? How To Get Paid For Your Investments Using Cloud Based CRM Systems

CRM | by Patricia Jones
Cloud Based CRM System

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.

Top Considerations for CRM ROI

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:

  • Did the CRM platform increase wallet share by capturing more customer income and consumers on your offerings?
  • Did the cloud based CRM software help sales reps match the services that your client needs?
  • Are the customer relationships lasting longer than before?
  • Did the cloud based CRM software provide marketing, sales, support, and the management teams with automated functions that improve business efficiency?
  • Have the management team in your organization been able to capture data that shows reduced direct selling costs?
  • Is the CRM platform, easy to use and intuitive enough to eliminate the time required for IT to pull reports from the CRM database?

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:

  • Making certain that the information silo housed in the different departments in the organization are abolished. It has been found that there will always be certain departments that will be more unwilling than others to comply with the CRM software, where all data is collected and stored in one place. However, it is important that each department in your organization agree to enter information in one place to reap the benefits of CRM ROI.
  • Create a means to measure the different metrics by departments and develop a reporting structure that can follow these benchmarks effectively. Therefore, select an online lead management software that is able to handle the deviating goals of marketing, sales, operations, billing, customer support, and others.
  • Accept workflow changes that will completely leverage the software. This may be a conflicting situation for most employees that are set in their ways. Setting the expectation upfront that CRM ROI is based on each team member’s acceptance of the software, is an important part of finding employee buy-in. Each of the employees must be aware that they will receive proper training to utilize the cloud based CRM software, which will make them grow individually and as a department.
  • Customize the CRM software to reduce the busy works, which is holding your organization back for generating CRM ROI, as you are likely to find a host of redundant tasks baked into many of the departments in your business.

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:

  • The time-to-implement and deploy was much faster with ConvergeHub cloud based CRM solution than an on-site CRM implementation.
  • Organizational efficiency in the processes was improved as sales and customer support departments were able to automate several basic and redundant works.
  • The online model of ConvergeHub CRM software allowed customers to avail a fixed monthly subscription, which nullified overhead costs.
  • ConvergeHub helped businesses save money in the long term.
  • Businesses began to see an ROI within 3 months after installation of the small business CRM software.

Try ConvergeHub For Free

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.

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