CRM refers to Customer Relationship Management. It is the acronym for the software that companies use to keep track of their interactions with customers. The Software also tracks customers’ buying patterns and surveys possible future needs for more product. Companies buy CRM as a way not only to keep customers loyal, but to bring in new customers, too.
The Cost of CRM, Part 1
If a company cannot continue to attract new customers, it cannot grow. Thus, by supporting companies in their attempt to deal expertly with current customers as well as with potential customers, CRM Software helps sales and marketing teams make the most of their time and expertise in order to generate more profit and revenue.
CRM Software evolved from marketing strategies that first began setting up customer-service groups once companies realized that even this basic surveying practice rewarded them with increased business. As a result of observing how the customer relationship market was one worth pursuing, CRM designers began to target the development of software systems capable of tracking what customers bought, what they spent, when they did their spending, and what they might purchase down the line.
Twenty years ago saw a change with the initiation of special sales, incentives, bonuses, and perks as businesses attempted to reward loyalty. CRM Software made this possible by setting up categories based on sex, age, income, education level, family status, and location as a way to sort customers and their purchasing habits. Organizing buyers in such a way facilitated more select marketing, and thus a more efficient use of company resources. Needless to say, as CRM software evolved into more functional and informative software, CRM implementation grew at an impressive rate and CRM Cost went up. This left businesses to figure out whether the benefits of CRM equaled the expense of the technology.
When comparing CRM costs, prices, and features, the first thing a company should do is consider the exact results it expects from its customer relationship management software. Then it will be time to begin the process of researching how much a Customer Relationship Manager system will cost.
CRM projects can be broken down into three main areas of costs: 1) the price of software licenses and software maintenance. A license can cost in the range of two-hundred dollars to a six zeroes investment. The range depends on the number of users involved, the size of the company, and –of course- on which application is being bought.
The second main area of cost is the price of professional services which are needed to get the CRM system installed and operating.