In any business, it is impossible to get the utmost success without the satisfaction of a customer. If you are trying hard to accomplish your organizational aims and objectives. Still, you do not see any results then it is time for you to set your priorities straight.
The secret of any prosperous business is the correct relationship between an organization and its customers. You heard it right. If you need to level up your business, consider changing the rules of the game, and put a laser focus on building your relationship with your customers. You will notice major results within months or a year.
For that purpose, Microsoft launched software which is known as the Microsoft CRM system which alone is responsible for building and maintaining the relationship between an organization and its customers. CRM systems mainly focus on the field of marketing, sales, and customer services and aim to sharpen those areas of expertise.
A Forrester report says, “Executional discipline is what sets CRM winners apart from failures, and establishing the right metrics is part of that path to success.”
Today we will discuss the CRM metrics in detailed form, and we will also discuss the 7 CRM metrics which every marketer should know. Let us get started.
What are CRM Metrics?
You need to track the right numbers, to understand if you are utilizing the CRM to its fullest potential. Moreover, at a business, function, and individual level these numbers help you measure your CRM success, this diverse performance associated with informational knowledge is defined as CRM metrics.
CRM metrics greatly help you in examining and analyzing the information of what’s happening in your company.
7 CRM Metrics
There are 7 CRM metrics that every marketer that wants success should know.
1. Customer Turnover
The first step is to know customer success metrics is ‘customer churn’ which is also known as customer turnover. Customer turnover lets you know how many customers you have lost this week, month, or this year. It will give you an accurate track of your customers, to see if you have decreased or increased your customers you can easily check at the end of every month.
To illustrate it further, let us say you had 200 customers a month and at the end of a month you were let with only 180 customers, which means you have lost 20 customers. If you divide 20 by 200, the answer would be 0.1%, which means you have lost 10 customers.
2. Net Promoter Score (NPS)
The net promoter score (NPS) calculates if the customer would promote your product or services further to its friends, family, or colleges or in his/her outer circle. You can ask questions from the clients, which would be examined by NPS. To further clarify, let us give some examples,
- Would you like to suggest this product to your XYZ friend?
- Would you like to promote our services and products in your circle?
Now, from 9-10, the customer is more likely to promote the product/services. While from 6-8 in NPS the person is not very motivated to promote it, hence it is less likely and they are not much interested. While from 6-1 it says ‘no’. That is the NPS calculating system, the most reliable system for customer services.
3. Renewal Rate
The renewal rates are related to the weekly, monthly subscription paying process by the customers. If you want to examine the growth rate of your business, you can see the renewal subscription rate of an individual.
4. Customer Retention Cost (CRC)
To see how much you are spending on the customer you need to examine the customer retention cost (CRC). You can add all the monthly expenditures you pay for the premium tools, personal time invested, advertising campaigns, cost of the products, and simply divide by the number of clients you are getting in a particular time.
5. Length of the Sales Cycle
Length of sales cycle calculates the duration of time that takes place for an individual to buy from you. Now, to get an average length number you need to add all the length numbers of your customers and divide it by their numbers.
6. First Contact Resolution Rate (FCRR)
This is an interesting CRM metric. Many customers have issues with their purchases. The trick is to reach them out and solve the problem, which is a good thing. You have to see the percentage of first contact resolutions of the customers that were solved, the more the percentage of (FCRR) the better your business is going.
7. Ustomer Lifetime Value (CLV)
The total lifetime value of the customer with your company is CLV. You track down an entire lifetime of the customer relationship with your company and if your customers’ value increases over time with your company.
The aforementioned are the most effective 7 CRM metrics that every prosperous marketer should know to take their business to a great milestone.
Related Article: What are your Top 5 Requirements for a CRM System?