But that only happens if you choose a high-quality CRM and use it effectively. There’s no automatic guarantee that your CRM will drive sales and revenue—you have to assess your sales data to see what kind of return on investment (ROI) you’re getting. That allows you to reoptimize CRM if the results aren’t what you want.
There are a few different methods you can use to measure the impact of your CRM on sales and revenue, including:
Analyzing sales data
Measuring the impact of marketing campaigns
Using each of the above methods, you can use your insights to increase your sales. Keep reading for an overview of how to make those improvements, as well as how to perform each of the methods listed above!
One of the first ways of measuring the impact of CRM on sales and revenue is to analyze sales data. You can, of course, use the CRM itself to compile and view this data. Most CRMs let you create sales reports so you can track your sales progress using different metrics.
You can view the progress of your sales over time and match that timeline to what you’ve done with your CRM. Each time you make a change to your CRM workflow, see what happens with your sales. If you make a change to your CRM and sales skyrocket, it could indicate that the change was a positive one.
You can collect many different types of sales data in your CRM, including:
How many deals you close
The value of each sale
Your overall conversion rate
By analyzing this data, you can get a clear picture of the impact your CRM has on your sales. If your sales are much lower than you’d like, it could be because you need to reoptimize your CRM to be more effective. That’s important for increasing the success of your business.
It’s not just your sales that matter when it comes to your CRM—the revenue impact of CRM is equally important. Though revenue and sales are certainly connected, they aren’t exactly the same, and you measure them in slightly different ways.
One of the best ways of measuring your CRM’s effectiveness is to track ROI. Basically, ROI is a metric that compares how much money you spend on your CRM to how much money the CRM brings in through revenue. After all, CRMs do cost money, so you have to ensure that yours is driving an overall profit.
You should be able to easily track your revenue right in your CRM, even attributing all of your revenue to each corresponding campaign. Needless to say, you want your total CRM-driven revenue to be significantly higher than the cost of the CRM.
Measuring the impact of marketing campaigns
In addition to looking at sales and revenue, it’s helpful to see how effective your CRM is at improving your marketing. Measuring sales is important, but the only way people will get to that stage in the first place is if you successfully market to them. Your CRM can help with that.
In some cases, you may run marketing campaigns directly through your CRM—for example, many CRMs come with email marketing features. But even some of the campaigns run through other tools may still be based on data insights from your CRM. All of those marketing efforts depend on the effectiveness of your CRM.
Because of that, tracking your marketing campaigns can teach you a lot about what your CRM is doing for your business. You can track metrics like:
Click-through rate (for ads)
Open rate (for email)
Lead generation rate
Conversion rate of leads to sales
You can track at least several of these metrics directly in your CRM. By examining them, you can identify which campaigns are the most effective and optimize future campaigns based on what worked well in the successful ones. If you notice any significant issues, reoptimizing your CRM workflow could be one way to help fix them.
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Using data and insights to increase sales and revenue
Once you’ve finished measuring the impact of CRM on sales and revenue, you may find that it’s not performing quite as well as you’d like. Or, even if it is, you may still want to improve its performance even more.
That’s where reoptimization enters the picture. You can use the data in your CRM and the insights you gain from that data to determine the best ways of optimizing your CRM to drive more sales and revenue. For example, you might find that you could benefit from better segmenting your audience in your CRM.
By implementing the tactics that have driven successful results in the past, as well as improving on any issues you find, you can help make your CRM a far more successful tool for your company.
Nutshell can provide an optimal CRM impact on sales
In summary, there are several different ways to measure the sales and revenue impact of CRM software. You can analyze sales data, track revenue, and measure the impact of your marketing campaigns. Based on what you learn, you can then reoptimize your CRM processes, as well as your marketing and sales strategies.
It’s important that you not simply measure these things once. You should continuously monitor your CRM performance to ensure that you continue to drive successful results for your business. And if you’re looking for the ideal CRM to help you do that, look no further than Nutshell.
Nutshell is a CRM specifically designed just for businesses like yours. Not only does it come with plenty of sales automation and reporting features, but it also comes with a top-tier customer support team to help you through any issues or questions you might have.
Still not sure if Nutshell’s the best choice for you? Just check out our 14-day free trial to see what it can accomplish for your business!