So, you have taken a leap and started using a CRM. You created a strategy and put it into play. You understand the great possibilities that CRM offers and are hopeful that your business is benefiting from the new system.
But how do you know that your strategy and implementation are working? Keep reading to find out.
Churn Rate
Your company’s churn rate is the measurement or percentage of customers who stop using your services over a specified time frame.
Having a strong churn rate is important because it is typically more expensive to obtain new customers than it is to maintain existing ones.
Your churn rate is equal to the number of clients lost during a period of time divided by the number of customers at the start of the period and then multiplying that number by 100.
To accurately measure church rate progress, you must calculate the rate before using CRM and then again after.
The higher the church rate, the better because low churn rates indicate that customers are not satisfied.
It’s important to remember that if your churn rate drops while using CRM, it could be due to unrelated issues such as a weakening economy, service disruption caused by technical difficulties, a change in product quality, etc. Here is an article to help ensure you are using your CRM effectively.
Response Time
Since a CRM streamlines many processes, condenses information, and records client interactions, employee-client response times should increase.
If your response times do not increase, your chosen CRM may not be as effective as you had intended it to be.
Response time is easily measurable. Some CRMs keep track of this data for you, however, if yours does not, you can do some quick research to calculate average response rates. Go back into client data collected before using a CRM and record the amount of time it took for clients to receive email responses and the length of phone calls. Gather information from a large number of clients and calculate your average. Then, complete the same process after your CRM has been fully implemented for a few months.
If your response time is shorter, you know your CRM is effective.
Speed of Lead Capturing
Speed of lead capturing is important because a lot of money goes into persuading potential customers to make their first purchase.
Capturing leads quickly makes room for more leads to be brought in and converted into paying customers.
Your CRM likely keeps track of Lead capturing, and again, you measure this rate by comparing it to figures provided before and after CRM Strategy implementation.
Sales Growth
Money is the lifeline of any organization and in order for your business to thrive, you need to see steady sales growth.
A CRM has many features that should directly impact and improve your sales growth. These features which include marketing, customer retention, conversion rate, and customer acquisition rate play a vital role in sales growth. However, measuring each individually would be a lengthy task.
Measure your sales growth by analyzing the period before CRM and after. Sum up the total sales revenue from both periods and plug your figures into the following equation:
Sales growth= Current revenue – previous revenue ÷ previous revenue X 100
If your sales growth has not improved, you can go back and measure each factor individually to determine where your CRM Strategy is lacking.
CSAT
Having a good CSAT (Customer satisfaction rate) is crucial for success. Your customers are the reason your business exists and if they aren’t happy, your business will suffer.
A CRM’s primary goal is to improve customer relationships, so if your CSAT is low, you might need to change your CRM implementation.
You can analyze customer satisfaction in multiple ways.
Surveys– Send out a customer satisfaction survey to determine how they feel about your business and its changes.
Social media monitoring– Social media is a great tool for monitoring satisfaction. When a person likes or dislikes a company’s actions, they tend to take their opinions to social media. Investigate all platforms to see if reviews and feedback have improved while using CRM.
Repeat purchase rate– If your customers are repeatedly coming back to make another purchase, they are clearly satisfied.
This is another easily measured metric thanks to CRM. Your system’s customer history will tell you how many times a customer has made a purchase. Compare before and after CRM Strategy averages to determine the success of your repeat purchase rate.
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