Following gut feeling is not the way to measure organization performance. It takes a lot more than that to run a successful business. What you need is a deep analysis of the sales, marketing, support, and financial results. And the only way to achieve it is to track relevant operational metrics.
The three departments that are most associated with the influence of CRM systems utilize a whole range of different operational metrics to measure their related performance. By department, these include:
- Number of prospects
- Number of new customers
- Number of retained customers
- Close rate
- Renewal rate
- Number of sales calls made
- Number of sales calls per opportunity
- Amount of new revenue
- Number of open opportunities
- Sales stage duration
- Sales cycle duration
- Number of proposals given
- Number of campaigns
- Number of campaign responses
- Number of campaign purchases
- Revenue generated by the campaign
- Number of new customers acquired by campaign
- Number of customer referrals
- Number of web page views
- User goal completion rate on the web
- Time per website visit
- Customer lifetime value
- Cross-sell ratio
- Up-sell ratio
- Email list growth rate
- Number of cases handled
- Number of cases closed the same day
- Average time to resolution
- The average number of service calls per day
- Complaint time to resolution
- Number of customer callbacks
- Average service cost per service interaction
- Percentage compliance with SLAs
- Calls lost before being answered
- Average call handling time
Operational metrics are worth implementing in all areas.
In addition, to these more traditional operational metrics, recent years have seen businesses expand their measurements outside of the strick business metrics. These are specifically incorporating Voice of the Customer feedback like customer satisfaction Net Promoter Score, customer loyalty, social media metrics like sentiment, influence, reach but also Project Management, Innovation and Leadership.
Using data to evaluate what is working and what isn’t is a very valuable management process.
And it is still a habit that is used too less. It can play a giant role in identifying and tracking the progress of organizational goals and identifying opportunities for improvement. That is an important step in formulating business direction and reducing declines in business performance.