December 2019
Made to Measure: Lunar’s Top 5 CRM Metrics to Measure Success
When planning for success with your business, it’s important to understand how to measure success. That’s why it’s important to have a CRM solution with the capability to produce robust reports at the heart of your business.
Before getting lost in detailed reports, however, it’s a good idea to start simple. If you’re new to using analytics and data to informing your business strategy, we’ve put together a list of good starting points. The Lunar team recommends these five metrics as good measures of success for your business:
1 – Retention Rate of Customers
Acquiring customers is a skill, but keeping customers coming back for more is an art. Maintaining customers is considerably cheaper than acquiring new customers. So for that reason you’ll want to be sure you’re keeping customers happy.
With your CRM, you’ll want to monitor customer retention and churn rates (the latter referring to customers dropping subscriptions or only purchasing a single product, for example). Ideally, you’ll want to see customers coming back, so high retention rates. If you’re noticing dips in monthly retention rates, then it’s time to examine your sales cycle and customer satisfaction.
2 – Customer Satisfaction
Your retention rates will drop and your churn rate will soar if your customers aren’t satisfied with your service. Naturally, it’s important to keep on top of that.
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)
Retaining customers is generally cheaper than gaining new customers, however growth doesn’t happen without new business. So you need to ensure you can acquire new customers at a low cost to your business.
Gain an insight in to your effective marketing techniques by monitoring CPA in relation to sources. Which campaigns brought in customers, which campaigns brought in most customers and which campaigns brought in more customers for a lower spend per customer?
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.