December 2022
An Accurate Measure: The Top 5 CRM Metrics to Measure for Success
Understanding how to measure success for your business is an important part of running it efficiently and profitably. While success can look different for every business, there are some metrics that can consistently be measured across any service offering business to determine whether or not your current tactics are successful.
Fortunately, with a powerful bespoke CRM solution at the heart of your business you can generate detailed reports quickly and easily to see how your business is performing against these metrics. So which metrics should you be keeping an eye on for your business? Here’s Lunar CRM’s top 5 metrics to measure for success…
1 – Retention
It’s a well-known fact that retaining customers is a far easier task than attracting new ones. Particularly if you’re running a subscription based service, you want to see how many of your customers are renewing each month, not just how many new customers are coming in.
With your CRM, you’ll want to monitor customer retention and churn rates. If you’re noticing dips in monthly retention rates and high churn rates, then it’s time to examine your sales cycle and customer satisfaction.
2 – Satisfaction
If your customers aren’t satisfied with your product or any element of your sales pipeline, you’ll start to see churn rates increase. So keeping an eye on overall customer satisfaction is an important metric.
Your CRM should be able to gauge your customer satisfaction rates, beyond just retention rates. A great way to do this is to gather data through customer feedback surveys. Work from day one on customer relationships – providing options for feedback and, more importantly, taking on that feedback will personalise customer experience and ensure customers feel valued.
3 – Cost Per Acquisition (CPA)
While it’s important to keep existing customers happy to keep the cash flowing, if you want your business to grow you’ll still need to attract new customers. And you’ll want to ensure you’re doing this with the lowest CPA possible, without harming your brand reputation.
Consult the CPA of previous campaigns and monitor which techniques produced the lowest CPA while resulting in high retention and customer satisfaction.
This isn’t an overnight process and you will need to tweak as you go to get this right. You’ll need to test this in early stages, but eventually you can use this CPA data to figure out which of your campaigns, and which audience, is proving to be most cost effective.
4 – Return of Interest (ROI)
If acquiring new customers is a little more expensive than retaining them, you need to ensure a return on that investment. That means tracking the source of your leads, to figure out which are most valuable and reliable.
By analysing which sources are providing your biggest return on investment you can put more effort in to campaigns that are seeing greater returns, and pause those that aren’t. Ensure you regularly analyse ROI to effectively allocate your marketing budget.
5 – Customer Value
Analyse your existing, quality customers. With your CRM data you’ll be able to assess the spending habits of your existing customers over their customer lifetime, and track them back to acquisition.
Using this data, you can inform future marketing campaigns. You’ll be able to build lookalike audiences, based on those that resonated most with your campaigns and products. Boost quality acquisition by informing your strategy with the data made available through existing customer lifetime values.
With these 5 methods of measurement in mind, you can easily begin to track the success of your business through your CRM. Perhaps more importantly, you can identify where your business could make improvements, whether that’s in initial marketing efforts or customer acquisition journey. Ensure you’re using your CRM’s reporting tools to get the most out of your customer data.
Lunar CRM gives you the power to build robust reports that can be used to inform your marketing strategies to boost quality customer acquisition – to find out more get in touch to arrange a free demo.