1. Lower cost of sales If the sales staff and management are updating the details on a regular basis you will reduce the phenomena of having out of date data, in your system, which will reduce the cost of wasted mailings etc.
If your business spends more than £30,000 per year on advertising a database could easily pay for itself in a few months.
Spend £90,000 per year that could be a few weeks.
Increased productivity Example -If a salesman brings in £200,000 of business and he achieves a 10 per cent improvement in productivity that equates to an extra £20,000 of gross business. If you work on a 50% margin that is an extra £10,000 contribution per sales employee.
Potential pay back - a 20% increase in gross sales would not be unreasonable which could be and extra 10 per cent contribution.
2. Avoid Waste How many items of post turn up at your place of work each day addressed to people who have:-
Simply cutting out waste can produce worthwhile savings and improve your own organisations credibility. If you are telling someone how much you value their business and that person is no longer there the message is hollow.
If you mail £12,000 of material per year reducing waste by 10 per cent will save £1,200 per year. - Every year.
3. Improved employee morale A sensible system CRM system will make everyone's life easier resulting in more productive happier employees. This will reduce absenteeism and staff turnover and will encourage good people to join your team.
The cost or recruiting a sales person could be £3,000 in agency fees six months salary at £2,000 per month (£12,000) before they start to perform and bring work in. If you can reduce staff turnover by one per year that could save perhaps £15,000 annually maybe more.
Plus there are a whole host of other costs when someone leaves.
However brilliant your management, and however good staff morale is, good staff do leave - but if you have a sensible CRM system new staff joining the team will be come effective more quickly as they find it easier to pick up on existing relationships.
Keeping staff could be the most positive outcome of a good CRM system.
Pay back - It would not be surprising in a company with 6 sales staff, if this was not at least £15,000 per annum and probably higher.
4. Improved customer knowledge, a complete customer profile within 18 months of starting your CRM project is achievable and reasonable.
The better your understanding of your customers the easier it is to up sell and cross sell new products and services.
Service calls will also be easier when you have a full service history. Customers will also be aware that your business keeps good accurate records which will encourage them to stay with your company.
Business value depends upon what you sell could be a few hundred pounds to many thousands.
5. Higher Customer Satisfaction It would not be unreasonable to expect customer satisfaction to increase through your customers and prospects receiving relevant correctly addressed correspondence, not having to repeat information, and slicker service from your organisation.
Become your customers preferred supplier - When you are selling or servicing a customer efficiently this will encourage them to make your organisation their first choice for future work.
This will enable you to keep your organisation busy when others are quiet and will help lead to your business enjoying lower costs and higher profitability.
Pay back could potentially be thousands to tens of thousands of pounds in some companies.
6. Improved customer loyalty / retention When you become a preferred supplier and revenue is rolling in it is easier to do the "extras", and with that your company becomes the company businesses want to do business with - and your customers recommend your company to others.
The value of customers referring you is very high and potentially worth many thousands and more often ten of thousands of pounds.
If it sounds too good to be true, a self financing investment with a short pay-back period before one gets in to "profit" why not check out the mathematics for yourself?
Request a presentation and work through the figures.
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