My clients ask for help quantifying the financial impacts of implementing a CRM technology solution. CRM initiatives must not only be technically sound but must answer the question “What will we get for our money?”
The first step is to estimate how investing in a CRM solution will help grow revenues, cut operating costs, and boost IT efficiencies:
Power up the revenue engine. You need to define the objectives associated with increasing revenue. Can you capture more of our current customers' spending on your product category (capturing larger wallet share)? Can you improve your product mix value by encouraging more sales of higher-margin products? Can you improve price realization by better matching discounting policies to the appropriate customer groups? Will your CRM initiative help you increase the average length of our customer relationships by reducing irritants that cause attrition? Will you be able to attract profitable new customers?