Study: CRM Applications Yield High Returns

Share this article:
Successful implementations of customer relationship management applications have yielded returns ranging from 16 percent to more than 1,000 percent, according to an ROI study from IDC, Framingham, MA.


IDC also found that technology-related savings account for only 7 percent of the average return, while benefits from increased productivity and business process enhancements account for 51 percent and 42 percent, respectively, of the return.


Other findings include:


· 19 percent of companies in the study generated an ROI of 50 percent or less, 52 percent generated an ROI of 51 percent to 500 percent, and 30 percent reported returns of 501 percent or more.


· 58 percent experienced payback in one year or less, 35 percent experienced payback in one to three years, and 8 percent experienced payback in three years or more.


· Median initial investment in a CRM application is about $426,000, which includes all costs incurred before the CRM implementation enters production at a site. Median total cost over the first five years is estimated at $1.2 million.


IDC conducted more than 30 in-person interviews with organizations in North America and Europe that implemented CRM applications.


Share this article:
close

Next Article in Database Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Database Marketing

Making Data Breach Readiness a Priority

Making Data Breach Readiness a Priority

5 ways marketers can prepare for possible data breaches.

What's H-appending? DiscoverOrg Taps Marketo's Webhooks

What's H-appending? DiscoverOrg Taps Marketo's Webhooks

Cloud-based marketing automation behemoth Marketo joins forces with marketing intelligence company DiscoverOrg to improve its data collection capabilities.

A Toast to Marketing Attribution

A Toast to Marketing Attribution

Vino accessories and storage company Wine Enthusiast indentifies top and underperforming affiliates using algorithmic marketing attribution.