CRM Returns Drop to $3.10 for Every Dollar Spent
Return on investment from CRM deployments has decreased from $4.90 for every dollar spent 10 years ago to $3.10 for every dollar spent today, but there is no cause for alarm, according to Cameron Marsh, a senior analyst at Nucleus Research.
According to Marsh, this 37 percent decline is expected given increased competition and more upgrades vs. new deployments.
"Over the past 10 years, there has been a significant surge in technological advancement in the CRM market," Marsh says, noting that "this evolution has empowered organizations to strengthen customer relationships, leverage enhanced productivity tools, and tap into superior analytics capabilities."
Marsh also says "it's crucial to understand that this scenario presents a learning opportunity rather than a setback.
"The modern technology landscape, while advancing at a rapid pace, is also evolving in complexity. This nuanced evolution may not immediately reflect in cost-effectiveness, as organizations grapple with integrating new functionalities and maximizing their potential," he adds.
And it's also important to note that though the return numbers are lower today, they are still positive, meaning that companies are still deriving great value from their CRM investments.