Call Center Software Featured Article

Investing in CRM is a Good Proposition: Nucleus Research Analysis

By Mini Swamy
TMCnet Contributor

Nucleus Research, a global provider of investigative, case-based technology research, highlighted the benefits of CRM (Customer Relationship Management) in its analysis and concluded that investing in a good CRM is worth every dollar spent on it.

The analysis stated that the returns even on second, third and fourth-generation investments were still significant and bore out the efficacy of a good CRM application. The returns on investment were so high that the average benefit that a company would earn would be more than five times the amount spent.

“With a return of $5.60 for every dollar spent, investing in CRM is a no-brainer. Further, that investment has significant staying power. As vendors add social, marketing, analytics, and mobile access capabilities to their offerings, organizations have an opportunity to gain even more returns from CRM,” said Rebecca Wettemann, vice president of research, Nucleus Research, in a press release.

Nucleus Research emphasized the uniqueness of CRM applications and stated that while all software applications yielded great benefits on initial deployment and smaller incremental returns thereafter, CRM consistently delivered significant ROI throughout its lifecycle.

In addition, further investment yielded more benefits. Nuclear Research noted that organizations that deployed secondary applications to run on top of existing CRM would flourish. Their ROI would triple, employee productivity would be enhanced and there would be an improvement in business forecasting and increase in sales.

Wettemann commented on the paradigm shift in the goals of the CRM market that resulted in a high ROI. The demand for cloud computing, which reduced the cost of deployment via the cloud, a shift in focus that brought end user productivity to the forefront, and a concerted effort by vendors to accelerate deployment through innovation were the chief factors that were cited.

In other news, Nucleus Research recently announced the results of a CRM Technology Value Matrix study it conducted recently. According to the study, CRM applications are being constantly upgraded with advanced features that enhance their overall functionality, such as sales effectiveness, social capabilities, marketing and web optimization with trends towards mobile application support.