Ultimate Guide To Mastering CRM Metrics


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CRM metrics are the foundation of any sales strategy. These metrics help you to identify leads, contacts, and activity details, so you can monitor how your CRM is performing for you. Many marketers aren’t familiar with how to properly use them.

What are CRM metrics?

CRM metrics are the numerical values that indicate how successful your marketing campaigns and CRM campaigns are. A salesperson can learn more about what works by having an objective metric to measure their progress.

CRM Metrics are often taken at face value by most people. I remember the time I lost my calculator and asked our client if he would like six months of no-cost service.

This mistake can still be made in CRM. However, it is better to use data-driven metrics which show the impact of your marketing efforts on sales results and how they are performing. This will allow you to adjust as necessary so your campaigns achieve or exceed your goals. So, keep reading!

What Types of Metrics Are There?

There are three main categories of metrics that you can use:

* Performance Metrics: This measures how each campaign or opportunity performs. This type of metric can tell you, for instance, which campaigns convert leads to sales the best.

* Customer Lifetime Value (CLV), is a measure of how much your customers make over the long term from all transactions they have with your company. If a customer spends $500 every six months on something, that is $100/per month or $1,200 per year. This will tell you how much profit your customers make each month.

* Customer Acquisition Cost (CAC). This is the cost to bring new customers into your sales funnel. All leads who meet specific criteria, such as signing up for a free trial, purchasing a particular product, or opting in for more emails, are eligible to join all sales funnels. The CAC metric shows you how much it costs for each customer to be acquired and converted into paying customers.

How do you calculate CRM metrics?

First, identify your funnel to calculate these metrics. This will include who your target customers are, their buying criteria, and how you can get them to join your sales process (email campaign or landing page).

Let’s take for example: To find out how much money each lead source generates per month, follow these steps:

Lead source #1 – $100/mo CLV = 100 x 12 mos = 1200

You should be able to find customer lifetime value by simply looking at your funnel data. CAC can be as simple as cost per acquisition multiplied by conversions.

What do you think?

Remember that metrics are based on averages. If you have 1000 leads, but only 10% generate CLV/CAC above $200/mo. then the metric is more susceptible to error than it may seem at first glance. However, if your average monthly CLV rises by 50 cents (which can happen in certain industries), then the metric has made significant progress.

Reviewing and Tracking These Items

To spot trends and make adjustments, you’ll need to monitor your metrics regularly. If you notice that one source of leads is consistently producing more leads than the other, you might want to switch to another source. Pay attention to CLV and CAC when measuring them. If either of these numbers fluctuates over several months, or quarters it could indicate that your sales process may be off-track.

Comparing CLVs and CACs from multiple sources (e.g. email campaigns vs. website forms) is important. Email-based lead generation has lower limits than those drawn by ads online.

However, it may be more difficult to reach people looking for new cars via email-based lead generation. It might be worth looking into ways to increase clickthrough rates and conversion rates for website forms that are aiming to generate sales of $200 per month or more. Each metric can be reviewed daily or weekly so you can spot trends sooner than if they become obvious after several months.

How CRM metrics can be used to your advantage

Tracking metrics is only half of the battle when you use your CRM system to track and monitor progress on leads, sales opportunities, and client relationships. It is equally important to understand what these numbers mean. After all, no one knows how well they are doing.

Example: I might have $100 CAC for an Email Campaign, but my revenue has been constant at $2 per Month for the past two months. This is a good example of how I feel about my revenue.

If I can see a CAC value in this instance, it would make sense for me to believe that more people are opening my emails and clicking on the links, thus generating higher revenues.

These metrics are not always able to detect trends. For instance, you may notice an increase in open emails after launch or new high-value clients. However, you must constantly monitor your progress. It’s not worth waiting for things to improve, but being ready to move in the right direction.

What CRM metrics are most important for a sales team?

Revenue is the most important metric for a sales team. This could include new clients, large-ticket purchases from customers, or increased online orders for products or services.

Everyone will be happier if they receive more money each month from this increased activity.

Once you have identified the key areas that are driving your business forward, it is time to pay more attention. Take, for example:

We need to look at what is causing the slowdown in revenue growth if our lead generation system seems to be working well. What could be causing this? Could it be that calls are being dropped in the call recording? Is it possible that sales staff don’t have enough time to meet with large companies? This is something that used to happen because of their work schedules.

No matter what your findings are, you should take action as soon as possible (such as reviewing task allocations and timeslots) to eliminate any potential stumbling blocks. These issues must be addressed immediately so that you can make improvements.

Sales teams must have metrics in place. But equally important is having people who can interpret them. What is your key performance indicator (KPI)? We’d love to hear from you in the comments section below.

How can you track leads?

Lead tracking is an essential part of any lead generation strategy. It’s something that most sales teams struggle to do.

Although it can seem easy to believe that leads are automatically sent by the system, there is more likely human intervention. Salesforce is a CRM tool that allows you to track leads. For example, third-party applications like Google Analytics, internal systems or databases such as Mailchimp, website analytics (such as Clicky), etc. It doesn’t matter where they came from, however, it is vital to track them so that you can see exactly where they are coming from and what they’re doing on your site.

Clicky, a website analytics tool such as Clicky, might be able to show you an increase in traffic to your site in recent days. This is very valuable information for sales teams. You wouldn’t know if those visitors were potential customers if there wasn’t a lead system or if they weren’t using it properly.

If you have a lead system, the sales team should have access to that data. For example, how many leads were we able to get from each source? How many visitors came from Clicky or Google Analytics? Is it possible to attribute the increase in traffic to our existing lists? Are these leads already linked to an email address?

How can you find contact information?

This is the most crucial part of any lead system and something people often forget. Salesforce CRM software is one example. Your leads may have contact information (email addresses) that are associated with them. However, this could be inaccurate or out-of-date.

If they don’t respond within 24 hours, then there may be confusion when someone questions what happened. “I haven’t received my shirt yet!” etc. This mistake could cost salespeople money if they send the wrong item in the mail.

If you use an online CRM system such as Salesforce or Hubspot, it is worth adding contact information fields (e-mail addresses), right at the start of your lead. This way, you can quickly check if they have received their order confirmation email, and update them accordingly. It’s not worth wasting your time trying to find new leads if they don’t have their order confirmation email.

People forget to add their phone numbers later. However, you shouldn’t send automated messages to everyone with generic information about your products. This can easily turn off people. Even if you do send messages, make sure to include an opt-out link so they can unsubscribe. This is especially important if your emails contain e-commerce promotional material.

How can you keep track of activity details?

This is an area where many businesses fail. It’s crucial to keep track of what salespeople do. If you work in an office environment, the contact you were given may have left early or are out of town for the day. It might not make sense to explain what happened with them from a business perspective if this was their last interaction.

Instead, you can use software such as Salesforce or Excel to automatically generate reports about new leads at various stages. These include when they were received by customer support when they were passed on to a salesperson, and so forth. You can track progress and see which leads are performing well and how much time each lead is taking.

Rapportive is a tool that helps you identify people who are not in your CRM system. It will display their LinkedIn profile and other information about them.

About the author

Kobe Digital is a unified team of performance marketing, design, and video production experts. Our mastery of these disciplines is what makes us effective. Our ability to integrate them seamlessly is what makes us unique.