Understanding the Hidden Costs of CRM | A2O Mobile

According to business intelligence company ZoomInfo, the average cost of CRM implementation for a company with 100 employees is around $3,000. Meanwhile, a company with more than 1,000 employees can spend $174,000 on CRM implementation.

Many companies are more than happy to pay the high CRM costs to take advantage of the system’s features and benefits. However, a lot more goes on beyond just paying your CRM vendor.  There are several hidden costs included in CRM implementation that are often overlooked.

Here are the most relevant hidden CRM implementation costs that your teams need to consider:

Hidden Implementation and Integration Cost

Contrary to popular belief, implementing a CRM system is not a simple “plug and play” process. In most cases, you may need to spend more on making sure your new CRM system is compatible with your organization’s current legacy infrastructure and systems.

CRM integration can be a complex project and often ends up as the full-time responsibility of your IT team for quite some time. Hiring additional full-time or part-time IT staff is certainly an option.

However, most companies rely on external consultants to plan, prepare, and execute the CRM rollout. You should expect to pay at least $1 in consulting for every dollar spent on the annual subscription price.

Customization Cost

Apart from the initial integration cost, another important expense that needs to be considered is customization. Most CRMs, by default, are designed to be a “one size fits all” system.

While companies can survive working with the CRM’s base features, there may come a time that you have to customize the system to fit your company’s needs. This project will require additional work and consultation.

Similar to integration, you can hire additional staff to support your IT team during the project, or you can rely on outside CRM experts for help. Hiring consultants is the preferred choice of most companies, but you may have to pay around $4,000 to $5,000 in consultation fees and at least 40 man-hours worth of work.

User Adoption

Integration and customization are considered the first half of the overall CRM implementation process. The second half is user adoption. CRM systems may require you to pay extra for individual user licenses, which doesn’t cover the cost of training and onboarding the user base.

Most companies fail in this part of the CRM process, so you shouldn’t overlook this step. When employees don’t utilize the new CRM system, the company ends up footing the bill. Ensure that user adoption and license fees are one of the first things discussed with your CRM vendor.

Training Cost

Implementing a new organizational CRM solution will require both time and training. Without proper training, how else will your employees be able to use or take advantage of the features offered by the CRM system?

Expect to divert people from their primary jobs to focus on training. Depending on the type of company or business you run, diverting employees comes with some financial cost. You may also need to hire CRM experts to train your employees on proper CRM system use.

In most cases, it’s wise to expect that your company will have to pay more than the CRM vendor’s upfront fees. It’s important to take your time planning and discussing possible expenses in implementing a new CRM system.

A2O Mobile offers innovative AI-based CRM solutions for sales-oriented companies. If you plan to implement a CRM system for your company, contact our team today and learn how we can help you.