How does a company that implemented CRM system could gauge the financial returns that it is receiving on its i

Question

how does a company that implemented CRM system could gauge the financial returns that it is receiving on its investment?

Answer 1

You'd likely have to do a self-audit or a 'process' audit.  CRM systems are only as good as the users.  If they are putting garbage in, not updating their leads in a timely and true fashion, over or underestimating a deal, then the senior management view of where the business is at is incorrect.  What CRM users (typically sales people) don't understand is that the tool is there to HELP THEM manage their leads, and also to provide senior management with a true and accurate picture of their business.  Huge decisions are made on data contained in CRM systems, and unless you do periodic checks on adherance to process, you'll never know if the data contained in the system is valid.  

How was the business doing before the CRM implementation?  Are just as many if not more leads closed with use of the system?  

Just a few thoughts.  I used to perform process audits for a very very large computer manufacturer.  It was insane how many users falsified or neglected their leads that were in the system.  Not to mention leads that were being managed OUTSIDE the system.

Answer 2

Is CRM customer relationship management? If so, order processing should be monitored for speed, accuracy and efficiency.  If historic data is available, you compare the current state with history and you can make a case for decreased operational costs, lower inventory costs, lower transportation costs, and fewer lost sales.

A decrease in end to end cycle time may also be a result and should lower inventory costs.

An increase in repeat customers or an increase in customers overall would be good quantitative metrics.  Also, don't forget to include the costs incurred with substitutions, returns, and change orders.