subject: CRM: an expense or an investment? [print this page] CRM: an expense or an investment? CRM: an expense or an investment?
Have you ever gone through professional sales training? Like Sandler, Samurai or Miller Heiman? If you have, then you'll know that each wants you to present your proposal as an "investment"! This is a not-so-subtle way making the prospect feel as though this is something so very worthwhile to purchase. You, of course, know better. It's something that your firm needs or wants and are willing to spend money on it. But the sales rep wants you to feel as through this purchase is an "investment".
Now this isn't an especially bad thing. Certainly many capital expenditures are investments. A new computer, a delivery truck, a new employee or a digital copier could all be considered investments. All are needed to make and sell the product or provide the services you offer.
What about computer software? Is it an expense or an investment? (Let's discount the fact that the traditional PC will probably be obsolete in a few years.) Every firm needs at least one computer. Probably several; and a server or two as well. And you need software to run on those computers. You'll either need to pay an up-front fee for the software (think Microsoft Office) or a monthly per-person fee for web-based applications.
Most if not all productivity software is an expense; you just gotta have it. If you do your accounting in-house, you'll need accounting software also. This could be premises-based or web-based.
But what about CRM or Contact Management software? Expense or investment? Dictionary.com's first entry for "investment" is "the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value". Does CRM fit into this definition?
What other software purchase could be used to gain or maintain customers? Well, if you're going to be technical, you could keep a customer list in MS Excel or some other flat file manager. Well, sure. But you then have to "manufacture" the functionality you need. All the bells and whistles needed for gaining and maintaining clients are built into a good CRM or Contact Management application.
CRM was developed specifically for this purpose! All firms need to get and keep customers. That's the essence and some say the very definition of a business.
So then any purchase of CRM is sure to be an investment. A purchase made with the intent on financial gain because of the purchase.
So then why do some firms continue to use Excel, sticky notes or (gasp!) Outlook to serve their customers?
