Soft Dollar Savings of CRM

By Robin Wilding
Updated: September 06, 2011

Businesses that employ CRM solutions are looking to realize quantifiable savings and ROI through their new technology, and they do. But what companies are often measuring as cost savings (and in turn ROI) are only hard dollar savings. Hard dollar savings are quantifiable savings that can be proven without a doubt. There is however another type of savings that companies receive when they leverage a CRM solution, soft dollar savings.

Soft dollar savings are benefits and savings that you can't measure; they are non-quantifiable savings that still have value for your business, CRM soft-dollar savings save you time, money or offer you a competitive advantage over your competition. The value of soft-dollar benefits like lower employee turnover or higher customer satisfaction cannot be calculated easily to prove a return on your investment, hence the term soft-dollar.

While it is easy to wax philosophical about the value of improving your customer experiences, lets consider the following slightly-more-tangible indirect savings with CRM that many executive and management types may not be thinking about:

Leaner But Stronger

When you employ a CRM solution you are streamlining processes that used to be done on paper and haphazardly, this makes your businesses greener, leaner and more thorough. Giving your employees tools like forms ensure that your unique company processes are followed each and every time, because let's face it your employees are only human and mistakes happen.

Continuity 

Your worst employees likely won't be around long, and your best employees should be promoted to ensure that they will stick around. Either way you are going to have employee (or position) turnover. By employing a tool like CRM you can ensure that procedures and processes continue no matter who is working in each position. This is especially critical within customer-facing departments like sales and marketing where turnover is high and continuity is critical to ensure you don't lose customers, sales and income.

Better, and Quicker, Training

Employee training is an often overlooked benefits of CRM; it is also a weak spot for most small-to-medium companies. Most non-enterprise businesses use peer-to-peer training to train new employees, another process that is vulnerable to human error. Using your CRM solution to train new employees will ensure that they learn the proper procedures, and have all the customer and company information at their fingertips. Not only will this produce more effective staff, but can do it in significantly less time than traditional training models.

More Selling and Less Organizing

Most people in your sales and marketing department are not right brained and will have difficulties remaining organized, if they didn't they would be in accounting or human resources. To help your staff stay focused and organized (in less time) you need a CRM solution in place. With a CRM they can easily input, organize and access countless details on customers, leads, opportunities, buying patterns, trends, behaviours and deficiencies. They can then use the time they saved for following up on the now categorized leads.  

Featured Research
  • 8 Reasons SMBs Should Invest in a CRM

    Adopting a CRM platform early offers many advantages, including the fact that it increases the odds of long-term success. While the cost of CRM software used to be prohibitive for most small businesses, this is no longer true. Cloud-based solutions have made the pricing much more competitive, and as many as 87% of companies now rely on them for their CRM software. more

  • 7 Ways Your CRM Helps Convert Leads

    Failure to convert interested leads can impact your bottom line drastically and simultaneously increase your operational costs and decrease your profits. The most common reason for this failure is lack of follow through from a sales team. Did you know that 74% of CRM users said that their CRM gave them improved access to customer data? And that by properly implementing a CRM, a business could shorten the sales cycle by 8 to 14%? more

  • Is Your CRM a Liability

    Is your CRM a liability? Before you answer too quickly with a no, just think about all the advancements that have taken place over the years regarding this technical solution. In fact, just in over the past decade there has been a dramatic shift away from on-premise systems to cloud based solutions. more

  • 12 Must-Have CRM Features

    Having a CRM is absolutely essential to any modern day business's success. In fact, 91% of companies with 11+ employees now utilize a CRM solution in their business. When making the decision to purchase or upgrade your CRM solution, it can be quite overwhelming determining which features are essential to your success versus those that pack more fluff than punch. more

  • Making the Case for a New CRM

    Did you know that having an outdated CRM is just as bad as not having one at all? Do you find yourself working even just a little too hard to make your current CRM work to maintain your contacts and relationships? While it is increasingly more difficult to reduce customer churn, modern CRM tools are much more powerful and provide much more opportunity to develop stronger relationships with your clients that can provide more stability and revenue to your company and bottom line. more