Convincing your CFO that a good CRM is a smart investment
If you oversee sales or marketing, then you are probably already convinced of the benefits a CRM brings. Your colleagues in customer service, operations and human resources probably all support your decision to use this solution. However, launching the implementation of a complete solution such as Dynamics 365 requires the support and approval of your CFO. To obtain this you must demonstrate to your CFO all the financial advantages this solution can bring.For many, the operational benefits of a CRM are so obvious that they fail to recognize all the financial benefits that also come with a CRM. A CFO should be among the primary people when it comes to wanting a CRM solution implementation.Here are a few arguments that will convince your CFO of the merits of using a solution such as this one.
Think like a CFO
Selling the idea of allocating a budget for a CRM implementation, requires you to understand the questions a CFO would ask themselves regarding such a project. You could demonstrate to your CFO how a CRM solution would help them achieve their own objectives. As NextCorp already mentioned in 2006, most CFOs will evaluate your project through the following questions:
- How will a CRM contribute to the growth of the company and increase productivity?
- How does this investment support the overall growth strategy of the company?
- What external factors could influence the implementation project and blow up the costs?
- What are the short and long term economical advantages of a CRM?
You should already know the answers to these questions, provided your implementation plan was properly documented.Never the less, the following key points, will validate the financial necessity of a CRM.
A CRM will generate more revenue
Revenue growth, is the primary concern of a CFO. Thus, a CRM will offer them the following advantages:
Shorter sales cycles
By facilitating the analysis of a sales cycle, it is possible to optimize and accelerate its process. In addition, a CRM allows for more thorough follow ups on sales opportunities which should result in obtaining a faster signature and a better conversion rate in other words, obtaining more revenue faster.
Reduce training time
By integrating semi-automated workflows and documenting your sales process, your CRM provides a clear and efficient structure to any new employee. As a result, they are better equipped upon their arrival in the company and can take faster control of their opportunities and have their turn at getting on board this structure.Reducing administrative tasks will also be one less aspect for them to assimilate themselves into.
Greater attention to customers
By automating certain follow up and report tasks which account for nearly 35% of the sales representatives’ time, a CRM solution enables them to give more of their time to their customers. This helps to generate and convert more opportunities.
A CRM will allow you to reduce and control your costs
Once the revenue optimisation has been reached, a CFO must control the expenses. Since a CRM implementation is a big expense, it is important to evaluate all the expenses that can be optimised by its implementation.
Optimisation of advertising expenses
A CRM, allows you to analyze the impact of your marketing investments more efficiently. You will know what techniques should be used to convert potential clients into paying ones. This will enable you to stop spending on a big number of business leads and allow you to focus on those that can potentially generate revenue.
Reduce the number of complaints
Having a better understanding of your customers and having a faster response to their requests, will reduce their potential dissatisfaction. This will have a positive impact on your customer retention, the cost of your customer service and the requests received for refunds.
Deconstructing the project
Implementing a CRM in different phases, will give you the flexibility of spreading out the cost over the period of a trimester. Its benefits however will be seen from start of the project. Making it possible to evaluate the advantages during the first phases.
A CRM will reduce your risk
Beyond the income inflow and outflow, your CRM reduces your financial manager’s risks and provides a more accurate projection capacity.
By using a CRM, your CFO has a more precise analysis of your sales forecast at hand. Your CFO can then weight the probability of each sale materializing based on your company’s historical performance data. Since the predictions are more accurate your CFO gains better control over the growth your company.
Stability in case of employee turnover
Strong processes and documentation of every sales opportunity make your business less vulnerable when your representatives leave the company. The company’s customers and opportunities will not disappear with the representatives and their replacements can quickly resume where the previous employee left off, ensuring a continuity of the sales process.
Although jumping on the bandwagon is not an argument we value, it is undeniable that if your competitors are reaping the benefits of a CRM, they are being proactive and efficient in catching opportunities that are available in the market. CRM becomes an essential tool in retaining your competitiveness and ensuring the growth of your market shares.Here are as many financial advantages that a CRM can bring to your company. These can be added to the advantages gained by your representatives and to the productivity increase that a CRM brings. Our team of CRM implementation experts can further help you evaluate the impact that a Dynamics 365 solution will have on your business. We will also help you build your case with concrete data tailored to your business reality.