13 CRM Performance Metrics You Need to Track in 2022
In today’s data-driven business environment, data is the new “oil,” according to Clive Humby, a British mathematician and entrepreneur. Raw data is useless, so marketers need specific metrics to analyze their businesses and use them to enhance their processes. CRM analytics provides crucial insights directly into multiple areas linked to your business’s survival and growth.
Importance of CRM Analytics
Using key CRM metrics, you can manage many areas of your business such as internal workflows, customer experience, ongoing sales, and customer acquisition. Measuring these metrics at the surface level will not yield any results, so you need to dive deep into the CRM data to find ways to boost your revenue.
CRM Analytics You Should Track
Here are 13 key CRM metrics to help you build successful customer relationships and confidently scale your business.
1. Sales Activity Reports
You should track sales activity reports to track whether the MQLs (marketing-qualified leads) shared by the marketing team are converting into sales or not. It will also assess the prospecting tactics used by your sales teams and their effectiveness.
For that, you should track the performance of your emails, etc., using vital email marketing metrics such as open rate and reply rate. If these metrics indicate a dismal performance, you should tweak your email copy.
You can also measure the call to appointments ratio to determine your outbound calls’ effectiveness. How many calls turn into meetings indicates your fronters’ performance. At the same time, it also tells you the capability of your sales team to convert those sales calls.
Pro Tip: AI-powered CRM tools are extremely useful in measuring such KPIs as they help you analyze your prospects’ engagement with your brand. They will also suggest what should be your next move.
Pro Tip: You can also use DashClick’s Sales CRM software to shorten your sales cycle, automate tasks, and close deals faster with actionable insights.
2. Sales Cycle Duration
A sales cycle indicates the time taken to close one deal. So, it’s a rough estimate of the number of days a sales team takes to convert a prospect into a paying customer. The sales cycle largely depends on the industry and product type. Other factors influencing it are product or service cost and stakeholders involved.
Again, identifying the right decision-makers and persistent follow-ups may help shorten your sales cycle. Similarly, contextual engagement and relationship building can also help you in a significant way.
Pro Tip: You can fix many issues related to Sales Cycle Duration using DashClicks CRM. The deals app on our platform will give you comprehensive information about your deals pipeline.
3. Close Rate or Sales Closing Ratio
You can get many sales opportunities through different tactics such as social media advertising, Google Ads, and even organic traffic, but what matters the most is the deals successfully closed by your sales team.
Close rate is a metric that helps you track your sales team’s actual performance and the factors responsible for it to take corrective measures. So, this CRM metric is needed to evaluate your sales strategy and identify the factors that lead to lost opportunities.
4. Net New Revenue
Money comes first in a business. If there is no revenue, you can’t do business. Net New Revenue is a metric that informs you how much revenue your startup earns. You can periodically track it to check your business’s health and your sales team’s performance. You can track it every month, once in a quarter, or once a year.
5. Marketing ROI
Marketing may attract an unlimited budget, yet you can be unsure of its impact on your overall sales and profits. Marketing ROI lets you track how your marketing expense contributes to revenue growth. You can easily track it by the number of leads generated against the number of conversions. It helps you decide your marketing spend for future campaigns.
Pro Tip: DashClicks’ CRM software and apps will provide insights into your customer behavior. It will also help you refine your target audiences and messaging.
6. Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) is a crucial metric that helps you project the average revenue you’ll earn from a single customer when they stay with you.
You can use the 80:20 rule to target high customer lifetime value. To improve your CLV, you should also pay attention to the customer support and customer experience (CX) you offer. Without that, you will only increase your churn and the number of unhappy customers. It’s also directly linked with your branding. If you have a higher CLV, your brand will grow and vice versa. You can increase it by boosting your cross and up-sell and regular subscriptions. If you offer value, your customer would love to buy from you.
7. Outreach Activity
It’s an important metric that helps you track every point of contact your salespeople have with prospective customers. It enables you to measure the effectiveness of your prospecting strategy and provides crucial information about the average sales cycle and average follow-ups required to close the sale.
You should pay more attention to quality here than quantity. So, making 15 well-researched and quality daily calls on your refined list is always better than making 40 random cold calls.
8. Leads by Source
This is the Internet age, and your best leads may not come from your sales department. Brands use multiple online channels and consistently receive genuine inquiries and leads. Tracking those sources will give you a good picture of how marketing channels are helping you in lead generation.
Some might be your website visitors, while others may come from social media and other marketing channels. Identifying the channels offering you the best return on your investment might be crucial to your success. Investment of time and effort also pays you back, just like monetary investments.
9. Customer Retention Rate
According to a study, acquiring a new customer can cost five times more than retaining an existing customer. According to another analysis by Small Biz Trends, increasing customer retention by 5% can increase profits from 25-to 95%.
The above stats prove that gaining a new customer is much more expensive than retaining your existing customer. That is the reason brands should focus on retention as much as possible. You should maintain excellent relationships, provide top-notch customer support, and offer an outstanding experience. It will always pay you back many times over.
The formula to calculate the custom retention rate is as follows:
Once you start tracking it, you can further improve it.
10. Net Promoter Score (NPS)
The metric is used to measure customer satisfaction. Customers are asked to share their experiences and feelings about your brand on a scale from one to 10. The lowest score is 0-6, whereas 7-8 is considered good. The latter score suggests that the customers passively enjoy your products and services. But a 9-10 speaks volumes about your business and indicates that they can recommend your product to others. With that score, your customers become your brand ambassadors.
11. Rate of Renewal
This metric is highly beneficial for you if you have a subscription-based business model. It represents the number of customers renewing their subscriptions after their expiration date. It also indicates the value you offer your customers and how fast your business grows.
12. Customer Churn
Customer Churn is also a critical metric because it tells you why customers are leaving your brand. Customer churn or attrition represents why customers are unhappy with your products or services and what you can do to plug in these major loopholes. It is as important as new customer acquisition because if you do not arrest customer churn, it will backfire on you.
13. Customer Acquisition Cost (CAC)
It is an important metric that tells you about the feasibility of your business model and whether your business is sustainable in the long run or not. It also tells you which processes you can automate and how to reduce costs in order to decrease the customer acquisition cost.
A high customer acquisition cost can be disastrous for your business. It would help if you revamped your strategy in that case. It also enables you to identify the red flags in your overall strategy to reconsider your costs and pricing, etc. Your expense may include staffing, marketing, software and tools, taxes, third-party partnerships, training, etc.
It would help if you started tracking these crucial CRM metrics to improve your business performance. According to a CRM tool survey, 70% of the businesses saw a noticeable improvement in customer satisfaction.
You can use CRM tools like DashClicks, to improve your company’s performance and customer satisfaction. It is equipped with apps such as Deals, Analytics, and Inbound, which bring valuable insights into your business processes. You can access them through a single dashboard.
Sign up for the DashClicks white-label platform for free and improve your business performance.