What is the average CRM ROI?
- Forecasting a payback from your CRM investment is often a prerequisite to making that investment.
- Research shows the CRM ROI is 211 percent, on average. However, that average varies according to user adoption, company size, program maturity and the specific application.
- Payback was most significantly influenced by user adoption and software utilization. Companies with both high user adoption and software utilization achieved 3.1 times higher payback than the average.
Customer Relationship Management software is sometimes viewed as a necessary evil. After all, you pretty much have to be able to track sale opportunities, marketing campaigns and customer cases. But that view is short sighted as research shows the technology can deliver a whole lot more, including an impressive financial return.
What's the ROI for CRM?
The ROI of CRM is, on average, 211 percent. That's according to the research survey findings published in the CRM Benchmark Report.
Even better, when the application is fully utilized and widely adopted, the payback increases by an order of 3 times. That's an extraordinary financial return. There's not a lot of company investments where every dollar invested nets back two to six times.
But on the flip side, the research also revealed that not every adopter earned a positive return. To understand the dynamics that most influenced payback, the data was correlated by several factors, which are shared below.
Payback by User Adoption
The distribution of responses was significant. The range varied from zero to high triple digits. So, we compared the financial returns with other findings in the survey to see if there were statistical correlations.
Comparing Return on Investment with user adoption was revealing.
71-80 percent user adoption was the breakpoint where the financial return went from incremental to linear growth.
Also, the directionally consistent distribution in the above bar chart makes it clear that higher user adoption correlates with higher return on investment.
Payback by Program Maturity
Survey participants were provided the below maturity model and asked to best align themselves into one of the four levels.
Each maturity level demonstrates increased software utilization. So, it was not surprising the data demonstrated that maturity level and payback grew in parallel.
What was surprising were the extraordinary financial returns for the most mature companies. While only 9 percent of participants reported "Exceeding", those respondents achieved a remarkable financial return.
Payback by Application
An initial survey question asked for the application name used by each participant. We then sorted the payback data for each application. The top 5 are shown below.
All five applications delivered impressive results. However, Salesforce topped the list primarily due to two factors.
First, it was cited by more respondents in both the Leading and Exceeding maturity model categories than any other.
Second, users of this application also reported the highest user adoption.
The combination of high user adoption and software utilization heavily influenced Salesforce being ranked as the application delivering the highest financial return.
The Point is This
Customer Relationship Management technology offers a tremendous opportunity to improve customer relationships and reap the revenue and profit results.
However, no technology investment is safe or sustainable if it cannot deliver a positive financial return. Fortunately, when Customer Relationship Management software achieves moderate or higher user adoption and software utilization it achieves its namesake mission and delivers an impressive payback to the company.
This research was conducted using an online survey from September 1 through September 30.
The survey was completed by 189 respondents in the United States.
The composition of respondents included the following firmographics and demographics:
The questions were organized among six categories. Participants were given the option to not respond to questions they deemed not relevant or did not know the answer.
The total number of questions may differ among respondents as based on a given survey response, a participant may be posed additional or cascading questions. Certain questions permitted multiple responses. Therefore, response totals may not sum to 100 percent. This research report is independently produced by Johnny Grow, Inc.