Key Parameters To Collect By A CRM For Managing Customer Relationships
As it is widely known, CRM is an outright software and beneficial tool for businesses to maintain their customer relationship. Through it, they can engage with more prospective clients, improve interaction with existing clients and enhance marketing communications. Apart from that, being a part of ERP, CRM helps businesses in evaluating the performance of the sales team, to analyse sales efforts and make them more profitable. Although these are the main functions of a CRM, there are certain metrics that are required for measuring the improvements brought by it in customer relationship management.
Following are the essential and valuable metrics that a CRM needs to collect for knowing the efficiency in sales and to boost the customer relationship.
Figures of Sales call
Sales calls are paramount metrics that show the progress of the company in sales. It is crucial to track the volume of sales calls, the number of calls made by sales executives, outbound calls, sales inquiries via email or websites. Altogether, these metrics gives the idea about the sales performance or improvement in the efficiency of the sales and marketing team.
Closing rate of sales
It determines the number of leads that get converted to clients within a particular time period. Sales closing rate is another most vital metric to know the effectiveness of sales as it measures the number of prospects that become actual clients within a given time. To put simply, these metrics provide the idea to the sales and marketing head of the business about how successful their team was at closing deals.
Duration of sales cycle
The time taken to find a new client, establish a connection and close a sale determine the sales cycle and it varies from company to company. While some are able to close deals within a day, some take weeks or even months. While it is earlier impossible to keep track of this cycle, CRM makes it possible and the average duration of sales cycle helps marketers to take more effective decisions.
Customer retention rate
To be clear, retaining an old customer saves 30 times of the costs needed in engaging a new one. So, it is prudent to invest more in maintaining long-term relationships with existing customers so that they come back and invest less in acquiring new ones. Customer Retention Rate is thus a useful metric to measure whether the efforts made for retaining old customers are worthwhile.
Return on Investment in Marketing Campaigns
The higher is the return (ROI) of the marketing and campaigning efforts, the greater is chances of leads generation. The key goal of any campaign or advertisements is to generate sales. Measuring the cost involved the campaigns in relation to the revenue generated by the acquired customers for the company gives the return from the campaign. Higher return signifies the company is positioned well in the market owing to its successful campaigning.
Average Lifetime Customer Value
This is also a valuable metric for CRM as it estimates everything, from the costs incurred in customer acquisition to their credit requirements, to short-term/long-term purchases planning. Overall, the lifetime customer value provides the total duration for which a customer stayed and purchases made by him or her. Such insights or knowledge of each customer value helps in determining offers/ discounts for them.
By keeping track of these essential metrics, a CRM system can undoubtedly help businesses to stay at the forefront of sales and customer relationship management. Measuring these will certainly help their sales team to devise strategies, execute campaigns and retention measures for bettering their sales.