As a wise entrepreneur, you’re always looking for opportunities to increase profits. Whenever you spend money in order to make more money, it’s an investment, and an investment can be a risk. As a business owner, your main goal is to minimize that risk as much as possible by calculating your return on that investment. Business owners may take a while to consider the advantages of investing in CRM database systems, but don’t always know the best way to calculate their ROI.
Start with some simple math
Let’s assume you’re going to splurge on whatever CRM database system you choose and get the best option available for several users. Let’s say, for instance, it costs you $1,000 annually, and you’re looking at your ROI over the next five years, or $5,000.
When attempting to determine your return on an investment, it goes beyond simply getting your money back. Your main objective is to make more money in the end. Without an increase in profits, it doesn’t make sense to spend your $5,000 that way, as there are other guaranteed ways to see a ROI from that same amount of money. For example, you can just put it in an interest-bearing savings account and forget about it for five years.
You’ll want to set a goal; perhaps your objective is to make $6,500 over the next five years as a direct result of investing in a CRM system.
When CRM database systems are properly implemented, they ensure that no information falls through the cracks. This means that no task is forgotten and no client (or potential client) is ignored. The CRM system you choose to invest in creates an asset that makes up your community, which includes your partners, prospects, and customers.
Take some time to consider how many prospective customers were missed opportunities over the last few years and as a result, how much money was lost in potential sales revenue. This could include prospects who were undersold or even forgotten about completely, or current customers who didn’t want to renew because they felt ignored. These are just some of the many things to consider. Add up the numbers, and ask if they add up to more than $6,500. And forget the past five years—just think about the last year. If the missed potential for revenue exceeds this amount, then you just calculated the ROI on your CRM system purchase.
Sign up for CRM training with Marks Group Live
If you decided to invest in a CRM database system, such as Zoho, the next step is to get the most out of your investment by ensuring your maximizing its uses. At Marks Group Live, we go above and beyond to ensure our subscribers have a full understanding of everything Zoho. Our unique services sets us apart from other Zoho training options out there, and includes live sessions, one-on-one support, an extensive video library that covers a wide array of Zoho topics, and more. Sign up as a subscriber today!