Question

1. What are some of the differences in estimating the benefits for CRM investments versus determining the return on more traditional investment situations?
2. Please use at least 2 additional materials (e.g. videos, articles) to illustrate your answer.

Answer 1

CRM is among the marketing strategy that companies are using to improve their revenue and profits primarily through customer engagement and new acquisitions. Until we quantify the gains of CRM projects, we do not have an impact on the income from CRM. CRM impacts sales in two ways:- Raising internal expenses (in the case of current customers) and rising external consumer sales; Currently, in all the aforementioned cases, there is an expectation that the expense has been decreased due to the company's CRM processes, or the new consumers add to the sales due to the CRM. This is also a little uncertain, because we can never be sure whether the ROI has risen because of the implementation of the CRM. And then, there is still going to be some calculation to make. Nevertheless, we will get the outcomes specifically correlated with it in percentages in the case of conventional investments and then it is easy to get the ROI on it.