Now it’s one thing understanding why your company needs a CRM and a completely different thing when you have to justify this to the business managers and investors. To convince them, you need to showcase the business value, its ROI, and explain how investing in a CRM System will help the business financially.
According to a study performed by Nucleus Research, every dollar spent on CRM software brings back an average of $8.71 —a staggering 771% return on investment (ROI).
This happens thanks to a CRM’s ability to increase the revenue of a business and improve its operational efficiency. A good CRM solution takes care of all the main processes in a company, from sales and marketing to customer support. It helps to centralise all the data used by your sales and marketing departments, improves communications within the company and with customers, generates analytical reports that help with the business strategy, and eliminates the chance of data loss.
Because of this, CRM Systems have become a universal tool for all business functions, as well as a necessity for a successful sales strategy.
Let’s take a closer look at each benefit that a CRM can potentially generate a ROI for your business.
It boosts sales
By providing a centralised database for all your customer and lead-related information, a CRM allows your sales team to be more organised. They no longer waste time searching for documents and contacts, as all the information is displayed at their fingertips. Duplicates are easier to find, making document revision simpler, and lead management is more precise.
When a company pursues a customer using a CRM system, that customer is likely to make purchases of 20% to 40% more with the same company. (Cloudswave)
Thanks to automated reminders, notifications, comments and easy file sharing, communications are more transparent and effective. Employees can monitor the status of each lead and automatically assign it to an agent, without having to email or call them.
Data accessibility for salespeople shortens their sales cycles by 8-14%. (Nucleus Research)
A CRM also helps to simplify the task of running multiple franchise offices. Not only can you create multiple branded websites for your agents through it (for example, here’s how Qobrix does this with its White Label solution), but also gather all your listings onto a property portal that would be integrated with the CRM System and automatically updated through it. With the help of permissions, you can also control which branch has access to what information.
Per sales person, a CRM can increase revenue by 41% (Trackvia).
It minimises expenses
First of all, a CRM minimises corporate expenses by being the versatile tool that it is. It basically acts as your own personal virtual assistant. It allows you to run mass email campaigns, securely store correspondence, tracks productivity and provides a clear sales pipeline view.
Secondly, your team will no longer need to invest in a multitude of collaboration enhancing tools and can get all the functionality they need just from the CRM. With its help, they will be able to generate various business essential reports, which may uncover potential problems at an early stage, and will allow them to eliminate these problems before they cause a loss in revenue.
With a CRM System’s help, one can easily segment their audience and measure the effect of each separate marketing campaign, thus preventing you from spending money on things that don’t work and helping you to focus on the things that do.
CRM is known to improve customer retention, by as much as 27% (Trackvia).
Finally, according to Forrester, CRM adoption can reduce customer service labour cost by 40%, overall labour costs 20% and improves a team’s productivity by a whopping 50%.
It enhances your marketing campaigns
The success of a marketing campaign greatly depends on correct targeting. You need to approach the right audience in the right way to get the result needed. Especially today, when one of the key marketing trends is personalisation, taking the wrong approach can cause your business to lose a lot of money.
A CRM software can greatly help in cutting costs and using one can lead to reduced marketing costs by 23%. (Cloudswave)
Since the CRM centralises your data and allows easy access to it, your marketing department can get to know potential customers better and understand what type of communication would be most effective. The reports generated through the system showcase the dynamics of a campaign, highlighting clearly which approach had the best reaction.
All this allows your team to stop wasting money on useless campaigns and start investing in the ones that deliver a high response rate.
A CRM integrates great features for email marketing. Email marketing also has 2X higher ROI than trade shows and networking. (Marketing Sherpa)
By integrating the CRM with mass email tools like MailChimp, marketing specialists can segment their campaigns according to audiences’ preferences and automate the send out, thus making sure that each message goes out to the right person.
According to research the ROI for email marketing is a 4400%, meaning that for each 1$ spent you get $44 back.
CRM Systems also save time on the creation of marketing materials. Property proposals that usually take lots of time to prepare, can be generated automatically with a few simple steps with advanced CRM Systems. Not only will this guarantee that your company’s branding will be cohesive through and through, but also that your employees can send out numerous proposals a day.
( If you want to learn more about marketing automation and the benefits it brings, check out our blog post on the subject. )
These are just the main reasons why a CRM System will yield ROI for a real estate business. And with technology continuing to evolve at a lightning-like pace, it will only continue climbing in the future.