3 Critical CRM Metrics
What makes customer relationship management (CRM) software truly valuable is the massive amounts of critical data that you can collect when the system is properly adopted. The newest iterations of CRM automatically equip your front office with deep insights. Your software tracks client activity and success rates without relying on a sales person to constantly enter data.
Some businesses misuse their CRM solution, keeping tabs on salespeople or tracking so many metrics that users become overwhelmed. Instead, you should leverage your software to gain a big-picture view of your business performance and measure data pertinent to strengthening your bottom line. So, what data should you really be tracking with your CRM system?
1. Lead Source
CRM software can track your customers from end to end, right from their first expression of interest and the exact channel they used to find you. Be it a social media post, email or interest form, clients are reaching out to companies in ever more diverse ways, and you need to keep track of this activity. CRM software will be able to report which medium is working the hardest at drawing in clients, and perhaps which parts of your strategy you need to focus on more. Say there is a drop in leads generated from social media—your CRM will notice this, so you can adjust your strategy accordingly.
This kind of information will not only help your sales team build their pipeline and understand where their clients are coming from; it also provides valuable feedback for your marketing department. When marketers know which channels are generating the most interest and valuable leads, they will be better equipped to enhance their campaigns and fix weak spots to capture more prospects. CRM data allows you to truly understand how various factors contribute to your lead generation.
2. Customer Lifetime Value
Successful sales strategies aren’t just about gaining new customers. Acquiring new customers costs about five times more than retaining an existing customer, so it’s critical to foster lasting relationships. The customer lifetime value (CLV) refers to the amount of money a buyer is expected to spend throughout their lifetime as a customer. This figure reveals how effective your company is at nurturing lasting, profitable relationships.
The CLV can also help users discover strong and weak points in their customer retention efforts. Are you providing effective outreach to existing customers? Which buyers are more likely to generate repeat business? Are service and support issues hurting customer loyalty? Your CRM solution can uncover the answers to all these questions. By using CRM to track CLV and gain a granular view of your sales strategies for existing customers, you can make necessary improvements to expand your customer lifecycle and lower churn rates.
3. Win Rate
Your win rate, or the percentage of closed opportunities that you won, is one of the most essential metrics of any sales department. CRM gives you the power to not only show how many deals you're winning but areas of the sales funnel that need some work. Your software can track when clients may deactivate their accounts or withdraw their interest in your services. It can even provide some insight into why that deal was never closed (e.g., a missed follow-up or a poorly designed demo).
With quantifiable data on the specific activities of each of your customers, your team will begin to become experts on what works for your clients and what tactics might cause you to lose a deal. In the wrong hands, this data could be leveraged to admonish sales reps whenever they slip up. However, when your CRM is properly adopted, this knowledge can help salespeople realize areas that need improvement and reach their quotas. Appropriate CRM training can prevent excessive user monitoring and ramp up your win rates.
Your CRM software serves as a valuable resource that provides deep insights into your business. CRM identifies patterns in your customer base and sales operations. It can help your front office form a clearer picture of the high-value clients you should be going after, how to capture them with perfectly targeted marketing campaigns and then how to close the sale.
At Datix, our certified CRM consultants will make sure you’re using your CRM solution to the fullest. We’ve partnered with two of the leading CRM vendors: Microsoft Dynamics 365 and Salesforce. These vendors have made tremendous strides in AI technology and data analytics to maximize the value of your data. We’ll help you select the right solution for your enterprise and optimize your CRM’s performance with a range of services, such as customizations and integrations.
To get more information on CRM software and how to pick out the best system for your business, contact an expert at Datix today!