$300 per user – Is it really worth it?

Maybe you are asking yourself the same question. Is it really worth paying $300 for a mobile application when vast majority of the apps available on the App stores are either free or they cost just $1? Let’s discuss this.

From economic perspective you are making all your investments in order to increase your revenue. If you know today that $1 invested will bring you $2 over time then you should definitely make the investment. If you knew that $1 invested will bring you less than $1 then you obviously shouldn’t invest.

Now let’s add Mobile CRM into equation. Mobile CRM is being used most frequently by the sales reps who are typically the people that bring the most revenue to the company. Thus they tend to be well paid. Average salary of the outside sales representative is $63,000 according to Indeed.com. However, to fully calculate the cost of each sales rep, you need to count also the cost of the office space, car, gas, phone, phone bill, restaurants, airplane tickets, hotels and other costs associated with the job of an average sales rep. Just for now, let’s calculate with total costs just $60,000 for each sales rep each year. Mobile application costs $300 which is additional 0.5% cost for each sales rep. And this additional cost is for the first year. For the following years, the maintenance fee for Mobile CRM is $60 meaning only 0.1% increased cost for each sales rep.

We know the costs and here comes a bit harder part. We need to estimate the increased productivity of sales reps that use Mobile CRM app. According to Nucleus Research findings, adding social and mobile access capabilities to CRM increases productivity of sales reps by 26.4%. We can certainly argue about this number. It can be lower, let’s say 20%, 15% or even 10%. It can be also higher. But by no means are we getting close to 0.5% or 0.1%.

To sum up what I want to say is – While Mobile CRM app will increase your cost for each sales rep by 0.5% for the first year and only 0.1% for following years, it can boost their productivity by many more times. If you do not think that mobility will increase the productivity of your sales reps by more than 0.5% then you should not be considering Mobile CRM at all. You have to understand that Mobile CRM app is neither a funny widget nor a toy. It is a complex tool that the most important employees in your company, the sales reps, will use on a daily basis. They will use Mobile CRM to create new contacts in your database, to edit opportunities after their meetings, to schedule their appointments, to assign tasks to other sales reps within their team, to track the progress of the deals and to make sure that customer is getting what he really wants. And that is CRM all about. CRM is not about keeping your data in the office, you can use PCs for that. The business today is done in personal meetings. Mobility is nowadays simply inevitable.

PS: Mobile CRM is used very frequently also by field service technicians. I just used sales reps example not to make the article too complicated.

One thought on “$300 per user – Is it really worth it?

  1. Pingback: Microsoft’s Mobile Client for Dynamics CRM 2013 vs. Resco Mobile CRM: A Side-by-Side Comparison | resco.net

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