DEFINE MEASURABLE CRM BENEFITS
Too many companies measure the outcome of their CRM strategies only as an afterthought. While understanding that a CRM system is necessary for their business, many fail to set out quantitative goals or metrics for tracking hard results. Unfortunately, many organizations can’t prove their success or meet their original objectives. Subsequently, most organizations have a need or desire to measure the success of their CRM implementation. Therefore, goals and metrics must be quantiﬁed and benchmarked right from the start to ensure that the right data is captured. Additionally, the right processes must be implemented to quantify results down the line properly.
To determine the impact of CRM on your organization, baselines for key business measures need to be established as a starting point that can be compared once the solution is in place. This also helps ensure that beneﬁts are correctly attributed to changes effected by the CRM system rather than other factors. For example, increased cross-selling, cost reductions, customer satisfaction scores, or changes in ﬁrst-call resolution could be used in a project’s return-on-investment (ROI) analysis.
Some best practices to follow:
- Define success with your CRM at the start
- Have pre-set requirements for metrics and data
- Develop the business processes required to capture data
- Determine user interface implications and accessibility requirements
- Plan for end-user training
- Consider data hygiene—ensure the data that’s captured is clean
- Scope the CRM project clearly and budget for all costs
- Secure management buy-in for any expansion to the original scope of work
Comparing actual results to established metrics will enable you to determine whether your CRM strategy is working and how effectively. If results aren’t as expected, then further analysis should enable organizations to determine why an approach isn’t working and quickly make alterations to improve performance. Moreover, comparing results will also enable companies to evaluate whether their original goals were realistic and reset them if needed.
Every organization has a different vision for their CRM project. Every vision brings with it a variety of business value propositions that can be attached to bottom-line results. In the following examples from CRM requests for proposals (RFPs), it’s easy to see the difference in emphasis between the companies’ CRM projects and the metrics they will need to deﬁne and measure.
Company One: An integrated call center states: “The purpose for this implementation is to provide an infrastructure to more efﬁciently support internal business operations, as well as more efﬁciently support external customers. This includes not only the need to support the business as it currently exists but also to support the organization after an expected growth of 25 percent. It is imperative that the software is highly conﬁgurable and customizable to support the business requirements of many customers. Additionally, it must be ﬂexible to adapt quickly to change as our customers and the market change.”
Company Two: A healthcare insurance company itemizes the following as criteria for success:
- Successful integration of processes, people, and tools
- Consolidation of silos of information
- Enablement of internal and external collaboration
- A system able to drive membership acquisition and retention
- Increase in overall efficiencies
The ROI metrics for Company One are a split between “hard” ROI—efﬁciency gains—and “soft” ROI—the ability to support them as they grow. Thus, Company One mandates a ﬂexible, conﬁgurable, and customizable solution.
Company Two needs software that supports collaboration across departments, between the company and its customers, and sales channels. The need to report on membership acquisition, retention, and improved efﬁciencies require benchmarks and pre-set targets from the project outset and a plan for measuring the same metrics over time to demonstrate results.
Though ROI deﬁnitions vary, CRM returns should be measured in terms of overall business value. Furthermore, results should show how the system supports a vision and yields both hard and soft beneﬁts, not exclusively on metrics. Nonetheless, determining how success will be measured, benchmarking pre-implementation ﬁgures, and ensuring the system is set up to capture the necessary information are crucial to accurately calculate quantiﬁable ROI metrics post-implementation.
DELIVER FAST AND INFORMED SERVICE WITH CRM. THE ROI PAY-OFF? MORE REVENUE AT LESS COST
Companies of all sizes face the challenge of retaining customers. With more options than ever, customers who don’t receive the service they expect have little reason to stick with your company. Customers across industries demand fast, personalized service—and if your company can’t provide this, they’ll ﬁnd a competitor that does. With loyal customers spending 67% more in their 31st to 36th month with a brand compared to their first 6 months, customer retention is vital for long-term success. This pressure has fueled the need to have critical customer information immediately available to all service agents at all times.
On the ﬂip side, offering great customer service often comes at a cost, and companies must balance their desire to provide superior customer service with their need to keep costs low.
Luckily, the right CRM solution makes it both easier to resolve service issues faster and cost-effectively while increasing personalization and responsiveness. To deliver the highest quality of service, ensure to integrate your proprietary technology with a ﬂexible CRM solution.
Utilizing CRM will further differentiate you from competitors in an increasingly high-growth, fast-paced, and competitive market. As a result, CRM provides substantial value to your ROI by reducing crucial response times and retaining virtually all of our customers without having to increase your employment.
Consider the anticipated ROI of a CRM project during the selection process. By deﬁning CRM success and identifying corresponding metrics, companies can help ensure their ability to demonstrate ROI when needed. Management, business users, IT staff, and the CRM vendor must work together to set the right indicators and targets with their CRM technology. This approach will validate a CRM investment in terms of the business value executives and stakeholders can appreciate.
HOW TOKARA SOLUTIONS IS READY TO HELP YOU GET THE MOST OUT OF YOUR CRM:
The business landscape is anything but static. Having a fully integrated, end-to-end CRM for every step in the customer journey is essential for any business looking to achieve the most while maintaining an ease of mind! Tokara Solutions offers help in providing the best CRM for you and your company! With an average of over 18 years of CRM consulting, Tokara’s wealth of knowledge in integrating and maintaining CRM systems is rooted in our devotion to supporting small, medium and large size enterprises.