Telegram

Especially for water delivery services!

Try for free

Support Ukrainian!

EN
Telegram

Especially for water delivery services!

Try for free

Support Ukrainian!

EN

Analysis and calculation of CRM effectiveness

The development of IT systems has firmly entered modern business. Digital technologies and software are designed to facilitate and automate many processes in the company's work. One of the useful technologies for business is CRM.

The cost-effectiveness of implementing CRM is indirect. CRM systems are designed to improve customer service, save employees' time and, as a result, increase sales growth. Due to the indirect impact on the company's profit and the need to invest in CRM technology, managers and businessmen often doubt the rationality of such investments.

How to evaluate the effectiveness of CRM system implementation

The effectiveness of CRM system implementation is assessed in three key categories:

1. Direct;

2. Indirect;

3. Risk reduction.

Before implementing CRM, it is necessary to measure all 3 indicators, then compare them with the result. Analysis of work in the CRM system will show the exact consequences of project implementation.

The main difficulty in assessing CRM effectiveness is that it is necessary to take into account a set of factors, including internal and external conversion, response to direct advertising, etc. In addition, the effectiveness of CRM implementation is individual in different organizations. Therefore, it is necessary to analyze the effectiveness of the project for each specific case.

In some organizations, the increase in profit and customer base is 7-10%, in others it reaches 30%. Efficiency consists of storing information about customers and automating a significant part of routine processes.

Direct economic efficiency

The direct economic effect of using CRM occurs linearly, i.e. installing the system leads to an increase in income and a decrease in business costs.

Examples of direct effectiveness:

- Before implementing CRM, the customer base was a simple table without clarifications. After applying the system, the base was expanded with clarifications, analytics, and tips for managers. As a result, the company processed only profitable transactions and increased revenue.

- The processes of interaction with customers were not controlled. CRM stores the history of communication to facilitate the control of managers' activities.

The main processes of storing customer data and further analysis are automated. The ability to control the quality of managers' work and develop more effective scripts is added.

HOW TO MEASURE DIRECT ECONOMIC EFFICIENCY

As noted above, the effectiveness of CRM implementation is carried out in a “before and after” format. Expenses are allocated from the organization’s total income, the difference will be an indicator of the effectiveness of the innovation.

For example, in a company before CRM:

- Monthly income - 150 million

- Fixed expenses - 60 million

- Variable/one-time expenses - 16 million

- Net profit/difference - 74 million.

After CRM implementation:

- Monthly income - 180 million

- Fixed expenses - 62 million
 - Variable/one-time expenses - 25 million

- Net profit/difference - 93 million.

The efficiency of the sales department has increased by almost 50%. It is the use of the CRM system that has affected the productivity of the sales department. The profit from the implementation of the CRM project covers the costs of implementing the system and training personnel. Managers are relieved of some routine tasks. They call customers directly, make edits to the table section describing the stage of the deal and the content of the dialogue, and proceed to the next task.

Without a CRM system, managers have to start the dialogue with customers anew every time. They do not know the stage of the deal in the sales funnel, which is why they are unable to answer existing questions because there is no information about them.

Indirect economic efficiency

The category of indirect economic efficiency includes results that are more difficult to calculate and isolate after CRM implementation. Indirect efficiency of CRM is expressed in additional changes in the company's work. For example, managers can devote more time to direct interaction with customers. In addition, they can address the interlocutor by name in advance, see an information summary of previous episodes of working with him. This attitude significantly increases customer loyalty. The overall productivity of the sales department increases.

How to calculate indirect commercial efficiency

The indirect effectiveness of the CRM system is calculated taking into account the LTV indicator. This indicator is calculated by comparing the company's economic indicators before and after the implementation of CRM. The standard formula for calculating the LTV indicator:

Average transaction value * Average number of sales per 1 month * Average time during which the client's interest in the company's services is maintained.

CRM also helps to track changes in the organization's efficiency, the quality of customer service and sales trends.

Risk reduction effectiveness

This effect of CRM implementation helps to reduce or completely eliminate the negative consequences that arise against the background of various factors during the organization's work. For example, with high costs for maintaining a customer interaction system, sales and profits of the company do not grow. CRM will help to identify what the problem is and how to reduce this risk. Common problems include insufficient efficiency of managers, untimely or too intrusive mailings, work on unpromising deals bypassing the sales funnel, etc.

How to analyze the effectiveness of risk reduction

As in the case of indirect effectiveness of CRM systems, it is almost impossible to calculate the level of harm reduction in advance. After the system is implemented, it is also difficult to identify accurate indicators of changes. Calculations are made before CRM is installed. The following month after implementation, identical indicators will also need to be calculated.

To find risks, an analysis of the work of the sales department is carried out. The most vulnerable points in interaction with customers are identified. Before implementing the CRM system, it is necessary to record several dialogues of managers on the phone, check the customer base, the amount of time spent on processing one episode of communication. All kinds of vulnerabilities and risks are checked. After implementing the system, analytics are carried out using the same parameters. The analysis can be done manually or using CRM.

For example, a common problem of communicating with customers is the lack of time to process all applications. Some customers simply cannot wait for a response from managers and go to competitors. The CRM system will help automate the workflow, the sales department will have time to process all applications.

CRM implementation effectiveness predictions

Preliminary calculation of the effectiveness of CRM implementation allows you to calculate the possible economic effects on the organization's activities:

1. Calculation of the profitability of using the system. CRM helps to better understand customer needs, which leads to a natural increase in profit by 1-2 percent. Some companies have the opportunity to increase customer loyalty by 10%. In money, this will be a 4% increase in profit. An increase in annual income by this amount allows the organization to enter new market segments, expand production capabilities and overall potential.

2. Reduction of budget expenditures. On average, sales department and marketing expenses are reduced by 10% per year. Cost reduction is a consequence of focusing on the target audience, more accurate definition of customer needs and wishes. Managers work less with "cold" customers, which ensures a constant expansion of the consumer base. Gradual accumulation of information about customers and accurate metrics allow successful transactions without additional costs.

3. Increasing business profitability. The share of sales increase of each manager, on average, is 10-12%. This is due to increased productivity, freeing up additional working hours and rational optimization of tasks between employees.

4. The number of successfully closed deals is increasing. Refusal of unprofitable deals leads to an average increase in closed sales of 5% per year.

5. Customers like the service. The average indicator in the field of customer satisfaction increases by 3% per year. Increased loyalty is a consequence of more executive behavior on the part of the supplier of goods or services. The CRM system also allows you to timely notify, transfer information to customers, reminds employees of the need to contact them. The increase in customer satisfaction can reach 50% during the year.

Venta-crm will help implement the system in your business, provide cloud data storage and technical support.

Contacts

Contact us with any inquiries:

Address

49000, Dnipro, O. Polya Ave., 107 G

Schedule

Monday - Friday:9:00 - 18:00

Contacts

+38 (097) 521-80-78moc.mrc-atnev%40troppus

Дякуємо!

Ми обов’язково зв’яжемося з Вами.

Can't send form

Please try again later.

Telegram

Home

Tariffs

Video review

Blog

About the company

Contacts

Offer contract

Opportunities

CRM system

App for couriers

Order management

Route optimization

Website + CRM (for water)



© 2019 - 2024 • Venta-CRM

Telegram

Home

Tariffs

Video review

Blog

About the company

Contacts

Offer contract

Opportunities

CRM system

App for couriers

Order management

Route optimization

Website + CRM (for water)



© 2019 - 2024 • Venta-CRM