How do you know if your CRM investment is paying off? Whether you are currently enjoying a CRM system, or are thinking about investing in one, there are several ways to measure the impact on sales, customers and business operations. Maybe one or all of these measures is worth your consideration. If you haven’t yet done so, consider setting goals based on the desired benefits of your chosen CRM solution, then monitoring the impact over time, to get an idea of the time horizon and set your expectations on whether or when your CRM investment will eventually “pay off”. In our experience, it’s typically measured in months, not years.
1. Increased revenue
A well tuned CRM solution could help you increase the volume of qualified sales leads, which can enable you to increase sales. Connect your website’s leadgen forms, your social channel feeds and your website analytics and other data sources, so you can better identify ready buyers as well as potential future buyers, and serve up the type of nurturing each might require. Your CRM solution can also help you automate and accelerate responses in a content-relevant way. Today’s buyers expect a prompt, tailored response, as a gauge for deciding whether and where to buy. The impact of this Customer Experience factor is discussed in detail later.
2. Reduced Expenses
One byproduct of the improved lead qualification and improved follow-up involved in appropriately nurturing sales and future leads is that you can reduce wasted time and effort on low priority work, or on waiting for others to take action, or on the distraction of less important work. CRM helps you detect leaky business processes, fulfillment delays and other opportunities to speed up the business. Result: you can sell, serve and do more, without sacrificing quality.
3. Greater Efficiency
Is your CRM solution enabling you to get more done with less? Are Leads, Contacts and Clients receiving better self-service and faster response? Your CRM solution can be just the resource you need to help minimize errors, omissions and delays in getting the right response to the right person at the right time.
4. Happier People
Our motto: every user a power user. One of our clients completely transformed from being a notorious high-turnover operation into a talent magnet, simply by supporting their CRM users better. Today, there is no excuse for not tuning your CRM, training your people, and empowering them to make improvements to the CRM implementation so that everyone can benefit. Top talent today expects you to have a CRM solution in place, to help them be productive and demonstrate results. If you can’t do that, you face self-imposed headwinds in hiring, training and retaining talent.
A well tuned CRM can also help you stay focused on priorities, so you can better measure your own resource needs and plan to either hire, build or buy the resources to meet demand, and stimulate an increase in demand.
Morale is higher when your sales, service and marketing people can use CRM to alert one another to a customer need, then involve your best experts and resources in delivering the right response on the most appropriate channel, at the right time – without redundancy and guesswork. People who are effective in their work tend to be happier and more productive. So, use your CRM to set up some measures that help people find opportunities to deliver the best result.
5. Customer Experience (CX)
Much has been written about the Customer Experience as the competitive lever in building loyalty, referrals and repeat business. A well tuned CRM solution can help you anticipate and meet customer needs in two ways: overt needs (direct requests) and implied needs. Implied needs can be detected based on patterns of buyer behavior combined with rich data. In one client case, we found that buyers of product A were more likely to buy product B, but not product C; we helped the client tune the fulfillment process to automatically mention product B, and only mention product C if expressly requested. This help the client reduce the wasted time, expense and annoyance to buyers in inappropriately recommending product C, while improving follow-on sales of product B. Result: better customer retention, improved customer relations, happier staff, and more sales.
6. Loyalty
CRM can be the differentiator in helping you gain a deeper understanding of customers’ values, needs and priorities, so you can improve your dialogue with each customer based on a deeper understanding of that individual. At one of our clients, some disparate departments were able to communicate better internally and coordinate to deliver the optimal result to a key customer. Where before some inbound inquiries from existing customers were being treated as unknown “first contact” conversations, the CRM helped improve visibility into the nature of each inquiry, by combining purchase records, IP address information, social signals and other data sources into a more comprehensive view of the inquiry and a more appropriate response.
A repeat customer does not usually with to be treated as a newbie, and a newbie probably shouldn’t receive a loyalty program until after the first purchase. CRM helps you straighten this out.
Over to You
What has your CRM implemention done for you lately? Have you set up measures to help you recognize the payoff? We’d love to hear about your experience and, of course, help you get those answers if you find them elusive. It’s all we do.
Contact us.
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Additional Reading
Article: How Digital is Powering Growth in Key Account Management (McKinsey)
