The essential CRM metrics for business owners
The business goals of every business are different, making the essential CRM metrics important. The CRM metrics differ too because they are customized to suit different businesses.
You decide the type of essential CRM metrics that will suit your business. We have listed some of the essential CRM metrics you can use for your business.
Types of essential CRM metrics to monitor
Here are the essential CRM metrics that apply to many businesses:
Customer churn is among the CRM metrics that handle how businesses lose customers during a period. This could be monthly, quarterly, or yearly.
With this metric, you can have a clear picture of how you are losing your customers. We often called this loss customer attrition and customer turnover.
When this figure is tracked, you can get an insight into how to keep your customers and use a better strategy to keep these customers.
Customer churn offers you insight into the reason why your customers are leaving your business.
Net promoter score
Net promoter score is listed among the essential CRM metrics to track in your business. This metric takes care of how satisfied your customers are with your business.
You can ask your customers to rate their experience during sales process on a scale of 1-10. How do you manage this scaling when it comes to essential CRM metrics to monitor?
You should make use of this rating:
- 0-6: Customers with this rating can potentially negatively impact your business’ reputation.
- 7-8: These customers are called “passives.” While these customers like your business, they do not have a strong attachment to buying from you.
- 9-10: These customers are called “promoters.” They help in recommending your product or service to others.
When you track your overall customer satisfaction, it becomes easier to learn how your customers perceive your products or services.
Regardless of the method you used for your rating, you should have a feedback system that links to your CRM solution. This can help you better understand your customers’ experience.
Customer effort score
When we talk about essential CRM metrics to track, we can bring in customer effort score. This type of metric measures the satisfaction of your customer.
However, it does this in relation to a customer’s overall effort to receive service. It does not only measure their satisfaction, it tracks how the customers interact with your business.
For customers that struggle to contact a sales rep to help them with their basic questions, the score can measure their overall experience.
Customer effort score offers you a clear picture of how your business is perceived by your customers. Many businesses make use of essential CRM metrics like this.
Great essential CRM metrics to monitor
Rate of renewal
Rate of renewal is one of the essential CRM metrics that handle your business growth. It falls under the essential CRM metrics for subscription-based businesses.
The metric tracks how many customers make use of your product or service when they have signed up. This metric helps businesses understand their ability to retain customers.
This lets businesses plan a targeted growth strategy for boosting retention while generating new leads.
Customer retention cost
The customer retention cost is among our essential CRM metrics that can help in measuring the overall growth of your business.
When you look at your retention rate in relation to cost, it becomes easier to understand whether it is costing your business money to handle your business’ high retention rate.
Learning about the different CRM metrics helps you understand how to push your business to the next level.
It can be challenging for some businesses to get the best out of a metric. Some of the essential CRM metrics allow you to track overall sales, log customer information, and monitor company goals.
However, when it comes to organizing the correct reports and drilling down into the most impactful metrics can be challenging.