How to Measure The Sales KPIs With Your CRM?
Customer relationship management (CRM) systems are good at extracting insights to track progress by measuring the right metrics for your business. Key performance indicators (KPI) for example are usually associated with statistics/data from CRMs. An interesting read on finsemes.com shares how one can use CRM to measure sales KPI. They are:
- Customer attrition – Also known as Customer Churn, this metric measures how many customers you lost in any given period. It measures customer retention in a reverse way. The lower the customer churn the better it is for your company.
- Close rate – It’s a ratio of the number of deals closed against the number of deals in the pipeline, over a given period of time. It’s the simplest of all metrics and used as a measure of a sales team’s success.
- Average deal size – Just the close rate does not give you the full picture. This is where the average deal size comes into the picture. To raise this number, you need to close a consistent stream of high-ticket deals. To get more high-ticket deals, you need higher quality deals. This is where the CRM’s Lead Scoring feature can help to extract the best leads possible. It gives a higher score to the leads who can spend more and are ready to buy in the near future.
- Upsell rate – When existing or brand new customers buy more from you, it shows that their trust in your brand (i.e. your products and services) is increasing. It is indicated by more than one purchase from the same customer over a given period of time.
- New revenue – New revenue is the revenue from new i.e. first-time customers.
Together these KPI’s will tell you how well your sales team and your CRM is doing.
