5 CRM Metrics That Matter Most [Infographic]
The successful business strategy starts with linking CRM tactics to the company objectives, then identifying measures to track progress. With the wrong CRM metrics in place, it can be hard to identify where the organization is headed, and what adjustments should be made. As a result, your company can end up with the poor team performance, insufficient business processes, and decreased revenue.
So how do you measure CRM? Before diving deep into the world of CRM metrics, let’s outline the main ones:
Marketing (by campaign):
- generated revenue and cost per interaction;
- amount of responses and purchases;
- customer retention rate;
- quantity of new leads by product or service and client referrals.
- number of prospects, new and retained customers, open opportunities;
- close and renewal rate
- time to close by channel
- margin and sales stage duration
- quantity of calls per opportunity
- amount of new and recurring revenue
- competitive knockouts
- cases closed the same day
- number of service calls and requests by type
- average time to resolution
- percentage of service renewals
- client satisfaction level
Now, when you’ve got acquainted with essential CRM metrics, check out the infographic provided by HubSpot on how to get the most insights of your CRM:
5 CRM Metrics to Keep Your Company on Track
The effective organization processes lead to the boost of overall business productivity. So, let’s specify CRM metrics that benchmark your company performance, structure, and success:
#1 Sales Closing Rate
One of the essential metrics is to determine how often the potentials clients are being turned into actual ones. In other words, it is a simple calculation that measures how successful your team is at winning deals.
#2 Marketing Campaign ROI
A primary goal of the marketing campaigns is to attract more customers and increase sales. So, every campaign should be measured to find out:
- number of acquired leads;
- quantity of the potential clients that were converted into customers;
- amount of money that these clients generated for business in relation to the cost of the campaign.
#3 Customer Retention Rate
If you want to sustain the successful customer relationships, it is significant to measure the clients’ loyalty. You can calculate this rate with the help of the following formula:
- subtract the quantity of new prospects you gained during a specific time phase from the amount of customers you had at the end of the period;
- divide this number by the total quantity of clients you obtained at the start of the period.
#4 Length of Sales Cycle
The sales cycle is a sequence of time periods that your prospect goes through when deciding to buy the product or service. Some organizations can win the sales in the same day. For others, the process may take weeks or months. The essential company objective is to shorten the sales cycle. This can help your reps spend more time on cultivating the new leads.
#5 Lifetime Client Value
The value of a customer is another example of CRM metrics. You can measure this rate with the help of prospect’s purchasing patterns and the amount of time over which a client remains engaged with your business. This metric provides an opportunity to identify how some clients contribute to your business revenue. Besides, the customer value allows you to prioritize the marketing activities like when to offer the discounts or deals.
Bringing up the rear, tracking CRM metrics is critical to keep your business thriving. It provides a comprehensive overview of the sales processes and company efficiency , as well as helps you build the successful customer experience.
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