YOUR CRM STRATEGY
The glamour for effective CRM solutions is accelerating, and Gartner predicts that the worldwide CRM market will have increased to $36.5 billion by 2017; a significant growth on the $20.6 billion figure of 2013. But what’s fuelling this growth?
Increasingly, organizations are realizing that with the cost of new customer acquisition typically being 5 times more expensive than managing existing clients, budget focus should be more aligned towards better relationship management, and CRM represent a cost effective way of achieving this.
DEVELOPING A BUSINESS CASE
Making a compelling case needs to be thought out. Done badly, not only are your chances of securing funds limited but, perhaps more critically, senior management will not appreciate and support the necessary changes in organization, culture, processes and business practices. Done well and you will be well placed to quickly break down any barriers to investment and adoption.
The most compelling business cases will:
- Demonstrate why the system is a strategic winner
- Quantify benefits at a detailed level
- Get specific about how the system will achieve those benefits
Building a business case is especially important when showing management how the software can contribute to your organization objectives and what the benefits will be from their investments. Nucleus Research is an organization which studies ROI and developed an infographic with tips for building a financial business case.
DATA TO BUILD A FINANCIAL CRM BUSINESS CASE
Nucleus Research also created a 2013 CRM benchmark report with all the numbers you need to build a financial CRM business case. Included are key data resources to see whether a CRM solution offers your benefits concerning profit and productivity for sales, marketing as well as customer service automation. Some tips:
- You will collect several benefits from implementing a CRM solution. However, narrow this down to two or three major benefits, because not all benefits will be equally important or applicable.
- Payback period is an important fact for involved people to understand. Answering the question how long it takes to cover the costs is a winning move.
- In a business case you should also include indirect benefits. For achieving these benefits include milestones for user adoption and training for increasing credibility and making the implementation journey more specific. Some of the indirect benefits will not be visible in the first 12 months as they often appear after this period of time.
- In order to calculate costs for Microsoft Dynamics CRM you can use this cost (comparison) calculator. Include a calculation for worst case scenario ROI and payback time.
CONSIDERED BUSINESS CASE STEPS
CRM solutions offer greater opportunities to communicate and collaborate than ever before. It is now possible to customize products, prices, promotion and even place for every individual customer and prospect, on a profitable basis. Based on this, presenting a compelling business case is essential to secure the necessary investment of time and budget, and the following steps represent the primary considerations to cover off when doing so:
- What is CRM? Although CRM is a fairly well understood phrase, it’s important to set expectations of the role that CRM plays in connecting disparate data sets and enabling more seamless engagement experiences for all internal and external stakeholders.
- What are CRM systems? With so many alternatives out there, provide a clear definition of what it means to your business.
- Calculate the benefits: Showcase how any CRM system will support wider business functions from marketing and sales, to HR and finance; supporting strategies for the business on a much higher level.
- Reaching ROI: Setting objectives and implementing stage markers that let the board clearly see a bath to the point where their investment is paying dividends is essential.
- Assessing the impact: What are the risks, how can you overcome them; do your homework and calculate potential pitfalls and remediation solutions to implementation and adoption.
- Presenting the case: Demonstrate the bigger picture clearly, and prove that the system will add unquestionable value
Gartner’s latest forecasts show that enterprises are realizing the most valuable assets they have are solid, long-term customer relationships, and Microsoft Dynamics CRM presents a compelling solution to enabling this, getting your business case right, first time, is the key to getting your project off the ground.
WANT TO KNOW MORE? Do you want to make your own CRM business case? Do you need to know more about Microsoft Dynamics CRM and the strategies you can adopt? Please contact us as we are happy to help you out.