CRM technology can deliver benefits to your business in lots of different ways. You can use it for lead management purposes to help you increase the number of leads you are getting and the percentage of conversions. It can be used to manage your existing customers more effectively and to sell more to them. Furthermore, it can help you with marketing communications, improve production speed, services, and support.

It goes without question that CRM – Customer relationship management, is necessary for enhancing the customer’s experience. It refers to the set of practices, principles and guidelines which an organization follows during their interaction with customers.

Learn how to measure your business

If you want to improve the quality of your customer relationships, you need to quantify them first, with the data from your CRM: The CRM Metrics.

Metrics give you better control over your sales and marketing efforts. They allow you to track performance more closely than a seat-of-the-pants approach. By following what is actually happening, we can react more effectively to what is going on, understand, and take influence on how it affects our overall performance. Metrics provide ‘precision’ to sales and marketing, enabling them to respond to changes or to initiate them and measure the results.

However, applying the correct standard of measurement to your activities and campaigns can be challenging. Which metrics indicate success? How do you find them? What do these numbers actually mean? 

Let me introduce you to the 10 most popular CRM metrics.

Close rate, average sales price
The Close Rate is the number of deals closed, compared to the number of leads in the pipeline.
First Contact Resolution (FCR) is a percentage measure of a company's success rate in answering customer queries at the first time of asking.
Customer Effort Score (CES)
Customer churn percentage of customers or subscribers who cancel or don't renew their subscriptions during a given time period.
The percentage of customers who renew their subscriptions at the end of each subscription period.
Customer retention is the cost of keeping an existing customer purchasing.

There is a whole world of information when it comes to CRM data. These are just a few points that will get you headed in the right direction with your sales team. But once you have a handle on these, it is worth it to expand to other areas as well. 

Measuring the right metrics can be the difference between a success story and a cautionary tale. If you know how to measure your CRM success, you can keep track of how close you are to reaching your goals.

Companies should use these formulas to benchmark campaigns, optimize efforts, and predict revenue. If the results are supported by hard data, that means that the company, CEO, clients, or anyone else can be confident in future success.

When the organization is measuring results, they’re bound to improve. The metrics available in CRM are essential to assess how the company is doing.

 

More on this topic

What operational metrics should you measure

3 fundamental sales KPIs that can be automated – find holes in your funnel

3 fundamental sales KPIs that can be automated – new opportunities

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