Business Growth: CRM Adopters vs. Non–Adopters

When considering a new shift in strategy or the implementation of a new technology, it is important for a Club, much like any business to understand how others have fared going down similar paths. 

As such, we dive into how businesses that successfully implemented CRM systems fared, compared to those that did not implement any CRM. 

• The Right Customers: This is relevant to marketing leads to sales conversions. A survey by Salesforce of over 10,500 organisations found that the adoption of a CRM system resulted in a Marketing ROI growth of over 25%. The study also found that compared to non-adopters, CRM implementations lead to 79% Conversion rate (Salesforce, 2016). Businesses can refine their leads significantly based on existing customer models to significantly improve the chance of conversion. 

• The Cost of Sales: Acquiring new customers has a probability of between 5% to 20%, as compared to cross-selling or upselling to existing customers at 60% to 70%. This demonstrates that using CRM, businesses can reduce their cost of sales by nurturing and building strong affinity with their existing customers at a lower cost than acquiring new customers. CRM adopters have seen revenue growth on average of 25% (Salesforce, 2016). 

• The Impact on Productivity: By reducing or completely eliminating certain manual tasks, from data entry to data analysis, CRM has been proven to boost employee productivity. By sorting, categorizing and modeling customer data, in a real-time or near real-time basis, CRM systems can help employees focus on how to strengthen customer relationships through providing them with relevant services, information and offers. A study by Salesforce found that 52% of high performing sales personnel took heavily leverage their companies’ CRM systems (Salesforce, 2017). 

• Customer Retention: As mentioned above, CRM systems can provide users with current customer models, at an individual level. This helps teams to deliver relevant services based on customer preference to each and every customer. This in turn leads to the customer having to make fewer decisions in the consumption of a service and therefore helps make the service even more relevant to them. As such CRM systems have shown a growth of 26% in customer retention and a growth of 35% in customer satisfaction (Salesforce, 2016). 

The adoption of a CRM system can have a number of benefits to any Club. It results in an increase in marketing ROI, increase in revenues, better customer service leading to better customer satisfaction levels. Finally, it also results in greater customer retention and Lifetime Value.