Is CRM an investment, a cost, or an expense?

CRM (Customer Relationship Management) can be seen as both an investment and a cost for a business, depending on the corporate approach and how it is implemented and used.

On the one hand, CRM can be considered an investment as it can help a business improve customer relationships, increase customer retention, and generate more sales and revenue in the long run. By implementing a CRM system, a business can better understand its customers' needs and preferences and tailor its products and services to meet those needs. This can lead to increased customer satisfaction and loyalty, which can result in higher sales and revenue over time. In all this setup, the business needs to set up the right strategies to process the data. With the developing artificial intelligence technologies, data processing and creating business intelligence can be much easier and cheaper than before.

On the other hand, CRM can also be considered a cost or expense because there are upfront costs associated with implementing a CRM system, such as purchasing software, training employees, and customizing the system to meet the specific needs of the business. In addition, ongoing costs such as maintenance, upgrades, and support may be required to keep the system running smoothly and efficiently.

According to Gartner's research, businesses receive a return of $6.5 for every $1 of investment, even on standard CRM investments. With the new generation of artificial intelligence powered CRM + HR (human resources) + DSS (Decision Support Services) software, it is possible to increase these rates up to $ 45.

Ultimately, the approach to CRM will depend on the specific goals and priorities of the business, as well as how effectively the CRM system is implemented and used to achieve those goals.