6 Key CRM KPI’s every business should track

by Admin | Last Updated: January 4, 2023

CRM KPIs (key performance indicators) are essential tools for businesses that want to measure and improve their customer relationships. These metrics allow businesses to track the effectiveness of their customer relationship strategies, identify areas for improvement, and make informed decisions about how to allocate resources. In this article, we discuss the usefulness of CRM kpi’s and which indicators are most important. Let’s go!

What is a CRM KPI?

CRM (customer relationship management) KPIs (key performance indicators) are metrics that help a business measure the effectiveness of its customer relationship strategies. These KPIs can be used to track the progress of the business toward its customer relationship goals, identify areas for improvement, and make informed decisions about how to allocate resources.

Most companies do work with CRM KPIs. Even if they don’t name it as such. The most important metrics for commercial departments are included in CRM KPIs

Examples of CRM KPIs

Some examples of CRM KPIs include:

  1. Customer retention rate: The percentage of customers who continue to do business with the company over a given period of time.
  2. Customer satisfaction score: A measure of how happy customers are with the products or services they receive.
  3. Lead conversion rate: The percentage of leads (potential customers) that are successfully converted into paying customers.
  4. The average revenue per customer: The amount of money that a business earns from each individual customer over a given period of time.
  5. Customer acquisition cost: The cost of acquiring a new customer, including marketing and sales expenses.

By tracking these and other KPIs, businesses can optimize their customer relationship strategies and improve their overall performance.

These are the most commonly used CRM KPIs

There are endless KPIs to consider if you want to measure commercial success. That is not to say they are all equally relevant or important. Nor is it workable to work with many targets and metrics. In general, it is wise to use only a handful of CRM KPIs. This will help you keep an overview, keep everyone on track and make it clear to everyone what needs to be worked on. Some of the most important CRM KPIs

1. Customer Retention Rate

One of the most important CRM KPIs is the customer retention rate, which measures the percentage of customers who continue to do business with the company over a given period of time. A high retention rate is a sign that the business is providing a high level of value to its customers, and it is typically a good indicator of overall customer satisfaction.

2. Customer Satisfaction Score

Another important CRM KPI is the customer satisfaction score, which measures how happy customers are with the products or services they receive. This score can be obtained through surveys, focus groups, or other methods of gathering customer feedback. A high satisfaction score is a sign that the business is meeting or exceeding customer expectations, and it can help to improve customer loyalty and retention.

3. Leads

When we look at new business targets, the number of sales opportunities or leads often are the most important.

Leads are potential customers who have expressed an interest in a company’s products or services. These individuals may have filled out a form on a company’s website, signed up for a newsletter, or otherwise provided their contact information.

Top-of-funnel leads

For businesses, leads and sales opportunities are valuable because they represent an opportunity to convert these individuals into paying customers. To generate leads, businesses often use marketing tactics such as content marketing, events, and email marketing. Once a lead has been generated, it is typically the responsibility of the sales team to follow up and try to convert the lead into a paying customer.

To be effective, businesses must have a clear process in place for managing and nurturing leads, from the initial point of contact to the final sale. By converting leads into customers, businesses can drive revenue growth and improve their overall performance. Building an effective lead generation and conversion process can be done with marketing funnels.

marketing funnel

4. Lead Conversion Rate

The lead conversion rate is another important CRM KPI. This metric measures the percentage of leads (potential customers) that are successfully converted into paying customers. A high lead conversion rate is a sign that the business’s sales and marketing efforts are effective, and it can help to drive revenue growth.

5. Average revenue per customer

The average revenue per customer is another key CRM KPI. This metric measures the amount of money that a business earns from each individual customer over a given period of time. By tracking this metric, businesses can identify opportunities to upsell or cross-sell to their existing customer base, and they can also identify opportunities to improve the value of their products or services.

6. Customer acquisition cost

Finally, the customer acquisition cost is an important CRM KPI that measures the cost of acquiring a new customer, including marketing and sales expenses. By tracking this metric, businesses can identify the most cost-effective ways to acquire new customers and optimize their marketing spend.

CRM KPI dashboard

Implementing CRM KPIs

Installing customer relationship management key performance indicators is an important step for businesses that want to measure and improve their customer relationships.

1. Identify metrics and objectives

To be successful, businesses need to first identify the specific metrics that are most relevant to their goals and objectives.

This may involve consulting with experts in customer relationship management, studying industry benchmarks, and gathering input from key stakeholders. And reading the articles on crmreviews.com of course! 😉

2. Select CRM Software

Once the appropriate KPIs have been identified, businesses can then choose a CRM software or platform that allows them to track these metrics in real time. This software can be customized to fit the specific needs of the business, and it can be used to generate reports and analyze CRM data to help inform decision-making.

Check the dashboard in your CRM software. Is it able for tracking the most important KPIs?

3. Use KPIs for improvement

By installing CRM KPIs, businesses can gain valuable insights into their customer relationships and take action to optimize their performance. Every CRM strategy should start with identifying the metrics that are going to be used to measure the performance of the organization.

Sales CRM KPI

What CRM KPIs are you working with?

Overall, CRM KPIs are critical tools for businesses that want to improve their customer relationships and drive long-term success. By tracking these metrics and using them to guide decision-making, businesses can optimize their customer relationship strategies and achieve their goals.

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