Customer Relationship Management (CRM) is a model for managing a company’s interactions with current and future customers. It involves technology and software to organize, automate and synchronize sales, marketing, customer service and technical support.
CRM has been with us since 1986 when ACT!, the #1 best-selling contact and customer manager, introduced the business world to contact management software, essentially a digital rolodex. Today, CRM involves the use cloud-based and SaaS CRM solutions to lower costs; the integration of marketing channels like digital social media and mobile devices to increase leads and conversion; and “Big Data” to make smarter business decision from analytics.
How is it working? Here are 11 convincing case studies to prove the ROI of CRM.
- ALLINA HEALTH: Used CRM to manage its data warehouse. It’s identified benefits that include reduced patient length of stay, reduced admissions, and improved health outcomes in stroke, depression, and angioplasty treatments. Within 2 years, the CRM initiative had an ROI of +152% and generated $1,052,828 each year.
- BEST BUY: Proactively monitored the social channels for customers in need of either customer service support or technical assistance. They created a CRM community to offer a place where Best Buy’s advocates including Blueshirts, Geek Squad Agents, and the community teams used lTwitter as their customer service channel. There are now roughly 600,000 customers visiting the community and posting 20,000 messages (over 77,000 messages and counting). The community has published over 22 million pages of content. Best Buy estimates that online community engagements provide a benefit of over $5,000,000 to the organization.
- BUSTED TEES: Sought to bring back recent customers and convert casual browsers, but they also wanted to re-engage with customers who hadn’t made a purchase, been to the website, or opened an email in a significant period of time. They use CRM Retargeting to serve display ads to people with nothing but an email or mailing address. It increased average order value to $40 and generated an ROI of +390%.
- CANADA POST: One of the world’s largest and most technologically advanced postal companies, has $5.9 billion) in annual revenue. It uses CRM as a cornerstone of its business transformation, particularly with regards to electronic shipping tools for commercial customers; internet sales and service tools for customer self-service and easier access to services; and contact centers to give customer service agents integrated information for customer transactions. CRM saved $16.25 million in revenue leakage.
- CISCO: Established a social media listening center. It listens to more than 5000 social mentions a day on Facebook, Twitter, and other social channels. Cisco has been able to control outside agency fees, avoid other customer and partner interaction costs, increase team productivity, and identify new sales opportunities. The social media listening center has had an ROI of +281% in 5 months to generates an annual benefits of $1,596,292.
- GET SATISFACTION: A leading online customer community platform that companies use or customer support, idea submission, marketing and sales questions, and capturing positive feedback, focused traffic driving strategies on search, social media, blogging, and buildling a content community. The CRM strategy achieved an ROI of +104% in month one, +168% in month two and +248% in month three.
- KIXEYE: An online gaming portal, used CRM to increase customer acquisition through its growing volume of Facebook ads. It’s enabled Kixeye to decrease annual advertising costs by 15%, extent the acquisition life cycle of games by 6 months and increased user productivity by 7.5 percent.
- MAGOOSH GRE: offers online courses for GMAT, GRE and SAT courses including video explanations, subject lessons, and practice tests. Magoosh ran a test and found that people who had been retargeted converted at a significantly higher rate than the control group. A CRM retargeting campaign generating 1,123 conversions for an ROI of +486.
- QOSINA: A medical and cosmetic components distributor, sells products to medical, pharmaceutical, cosmetic, skincare and spa companies. It used Microsoft CRM to effectively track its customer and prospect interaction, and to provide management oversight for accountability of sales opportunities and salon industries. It generated ROI of +172% within 2 years.
- TYROIT: is Europe’s largest manufacturer of bonded grinding, cutting-off, sawing, and drilling tools, generating $416 million in annual revenue from more than 70,000 unique products produced in 19 plants for 60 countries. Tyroit used CRM integrate products and solutions to reduce the number of contact points and transaction costs. It increased bottom line costs by +25% and produced an ROI of +183% within 2 years.
- ZENDESK: is a web-based customer support software company with a robust ticket management system and a strong customer community. They offer products from starting from a free trial to three paid tiers. They used retargeting to improve lead generation and saw conversion increase by +1317%.
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