Today, everyone is talking about Customer relationship management (CRM) and its countless benefits for organisations of all sizes. No wonder, organisations are getting on the bandwagon and leveraging CRM dashboards to gain a 360-degree perspective of their customers and buying patterns at a glance. However, there are some good questions attached to the efficacy of CRM solutions. Simply put, how to figure out what is the return on investment of the CRM solutions.
The simple and short answer to this question is figuring out ROI for CRM is a challenging task and something that needs to be pursued on a case-by-case basis. This is primarily because each CRM implementation is unique and there are a lot of factors to go through to figure out the exact value to extract the ROI value of the CRM solutions.
The CRM ROI Calculation
Measuring return on investment in the broadest sense can be boiled down to:
CRM ROI = (Gain from Investment into CRM – Cost of investment) ÷ Cost of Investment
According to Forrester (a leading global market research company), many business benefits were seen with Dynamics CRM Online like reduced CRM maintenance, avoided infrastructure costs, and a quicker time-to-market.
It was found by the report that:
Customer service and sales departments were able to automate a majority of their basic and mundane functions, which resulted in organisational efficiencies in the processes.
The time-to-deploy was much quicker with Dynamics CRM Online than an on-site implementation.
Microsoft Dynamics 365 CRM assisted organisations to save money in the long run.
The online model of Dynamics 365 allows customers to access a fixed monthly subscription rate without unexpected or "surprising" overhead costs.
Organisations started noticing ROI within two months after Microsoft Dynamics 365 CRM installation.
According to Forrester, Dynamics 365 CRM has an overall CRM ROI of a staggering 75 percent, which makes it a highly-rated product worth considering.
Sales CRM capabilities of Microsoft Dynamics 365 will help your organisation:
Manage agreements and request payments
Close more leads
Find cross-sales opportunities
Build proposal and sales templates
Analyse sales performance
Identify the most profitable customer niche
Using Sales CRM capabilities, Microsoft Dynamics 365 can help you increase productivity by 4.5 percent and profits by 4 percent while cutting down on administrative costs by 3.7 percent.
Marketing CRM capabilities of Microsoft Dynamics 365 will help your organisation:
Create and target customer segments
Evaluate ROI for all marketing campaigns
Automate tracking of every customer activity
Create and leverage customer database for marketing campaigns
Connect to Power BI for efficient data analysis
Using Marketing CRM capabilities, Microsoft Dynamics 365 can help you increase productivity by 4.2 percent and profits by 3.2 percent while cutting down on administrative costs by 3.7 percent.
Customer Service CRM capabilities of Microsoft Dynamics 365 will help your organisation:
Register customer requests quickly
Track real-time status of customer messages
Leverage customer support tools and analytical instruments
Using Customer Service CRM capabilities, Microsoft Dynamics 365 can help you increase productivity by 4.2 percent and profits by 3.5 percent while cutting down on administrative costs by 3.7 percent.
Impact Of CRM On Different Segments Of Organisations
Hard Value/Direct ROI: Representing resource savings and quantifiable cost that is appreciated by managers and executives alike. This is where a CRM like Microsoft Dynamics 365 shines.
Soft Value/Indirect ROI: Representing advantages that need additional actions to be attained. This type of value/ROI may have a significant impact on revenue growth, personnel savings, and productivity though more difficult to quantify than hard value/direct ROI.
Calculating return on investment for your CRM at the end of the day will be a multi-faceted endeavour. You need to consider every possible way that CRM can impact productivity, expense management, and revenue when measuring CRM ROI. In doing so, you will likely notice that the benefits of CRM outweigh the cost.