26 Most Important CRM KPIs & Metrics to Track

Description:How many campaigns monthly are sent to clients by email. One of the ways to reach your clients. It is good to track that metrics and compare it with other campaigning ways like sales calls or sent SMS number to efficiently invest in each of those methods depending on the results and possibilities.

Should be High or Low?:This is an informative number that can help you to compare all your marketing methods.

Description:You can measure how effective are your email campaigns. If they catch focus of your customers/potential customers to click and search for more information regarding the campaign presented in the email.

Calculation Method / Formula:number of clicks for more information / number of sent emails

Should be High or Low?:You can also compare it with other ways of reaching client. Measure how successful each of the ways of campaigning is more useful or which one needs more investment if the ratio of success is going down.

Description:This metrics shows the percentage out of number of all visitors how many of them actually bought some of your products. The target is to have this number fairly high but even if conversion rate is not very high, but the number of visitors is growing your total sales will grow as well. You can measure if it’s worth to use pay-per-click advertisement method. If your traffic is high but there is not comparable number of new subscribers that might not be worth to pay for that kind of advertising.

Calculation Method / Formula:# of successful actions / # of total website visits.

Should be High or Low?:You may check how your strategies or product improvement influence on the conversion rate and based on that choose some directions in growing your company.

Description:The total number of sales calls to potential or existing clients per month. Comparing with number of e-mails and SMS sent and the results of each way of campaigning you can decide on further steps in your marketing methods

Should be High or Low?:This is an informative number that can help you to compare all your marketing methods.

Description:The total number of sent SMS per month. Compare also with results of other ways of campaigning.

Should be High or Low?:This is an informative number that can help you to compare all your marketing methods.

Description:It is an average cost of interaction with a client out of all possible ways like e-mail, phone etc. On the cost influence mainly two factors, medium used for communication plus all costs related to it and the working time of the employee.

Should be High or Low?:Growing costs may indicate lack of proper experience and knowledge of your employees.

Description:It is rating given by your client based on how easy and clear and intuitive your products and services are. Even if the client finds a problem is, he able to resolve it by himself easily without personal assistance.

Calculation Method / Formula:number of issues resolved by the client himself / number of total issues reported

Description:Depending on your approach you can calculate leads and prospects as one group, but in fact lead is not qualified contact and the prospect is already qualified one. There is also a discussion about the difference between conversed and acquired lead. Conversion mostly translated as gaining an actual customer who spent money and acquisition as customer who haven’t’ spent money yet but for example assigned for the subscription. It is also useful to track the number of prospects and then compare it with actual number of generated customers.

Should be High or Low?:You can compare this metrics through the months and see if there are differences depending on marketing strategy, product offer changes or your employee’s qualifications. If you measure the ratio you can see how accurate your campaign is and if you are attracting really potential customers.

Description:It is usually confused with CPA which stands for generated prospects, but this metrics is measuring cost of all the leads generated counted together with both possible customers and the one that will not be interested in your products. This is important to have the campaigning well created for the target customer, so you don’t pay extra costs for attracting people from outside of the target.

Calculation Method / Formula:Total advertising (campaign) cost / number of generated leads

Should be High or Low?:It is related to your campaign and marketing strategies. You should choose it according to your target based on a value of an average customer.

Description:This metrics shows the percentage out of number of all visitors how many of them actually bought some of your products. The target is to have this number fairly high but even if conversion rate is not very high, but the number of visitors is growing your total sales will grow as well.

Calculation Method / Formula:# of successful actions / # of total visits.

Should be High or Low?:You may check how your strategies or product improvement influence on the conversion rate and based on that choose some directions in growing your company.

Description:It is a total cost of advertising to convince a potential customer to buy your product or service. It may show you how good is your marketing strategy. The target of any marketing should be gaining as much as possible new customers not just visitors without real value. You must remember to include in the expense’s salaries, costs of software, equipment, rent etc. Conversion is very often mix with acquisition of a client it is important to know the difference, acquisition means gaining a potential client that starts a subscription but he haven’t spent money yet while conversion counts only customers who spent already money on your product or services.

Calculation Method / Formula:(Total Marketing + Sales Expenses) / number of New Customers Gained

Should be High or Low?:If the cost is growing most likely you have a lot of visits of new potential prospects, but the conversion rate is going down.

Description:It is the percentage of loyal customers who keep using/purchasing your products in the end of the measured period of time out of customers counted at the beginning of that period of time. New customers are not counted into this metrics. This can help you understand your strategies for keeping your customers.

Calculation Method / Formula:(CE-CN)/CS where CE – number of all customers, CN – number of new customers acquired, CS – number of clients at the begining of the measured period

Should be High or Low?:If the number is going down, you may search for reasons and try to implement some changes. Low number might indicate some new competitor on the market or some new interesting offers that can attract clients.

Description:With this metrics you can understand market condition and your marketing strategies accuracy. You can see if your product and marketing attract new customers or not.

Should be High or Low?:If the number is low maybe you have a wrong target group. Maybe you are reaching for the group of people that cannot be classified as prospects, but they increase your costs of advertising investment.

Description:Also called the attrition rate. It is a percentage of churned customers out of all customers connected either by some contract or subscription for services or products in some period of time (in a month). The main reason usually for the attrition of the customer is poor customer experience or slow service performance.

Should be High or Low?:To decrease the percentage and increase the customer satisfaction you may consider develop tactics how to value your customers and how to build a relationship with the customer.

Description:Number of customer complaints due to poor quality services or products in a specific period of time.

Description:The percentage of incoming calls correctly connected by the subject of the call. Those are the calls where is no need to redirect or follow-up an issue divided by the total number of incoming request/calls answered over the similar term. This metrics can depend on the Self-service rate and the customer awareness or the well-prepared contact form divided properly on possible subjects of issues.

Should be High or Low?:The high percentage tells that your company have a big knowhow and experience and is able to clarify and separate correctly the contact channels.

Description:Average time spent with client to resolve the problem or help with transaction. It is important to have a well-qualified employee who can understand a problem fast and quickly help to resolve it. Time is important but you cannot forget about the customer experience.

Should be High or Low?:The time target should be short, and it means your employees have a lot of experience and knowledge.

Description:Once, you supply an experience with product or service to your customers, you should measure how to meet expectation. It’s similar metrics to NPS but in that case your questionnaire for the customer can give you a lot of important hints and information’s regarding many aspects of your offer and improve it accordingly.

Description:It measures how much effort your customer has to input to get his issue resolved. Besides the effort itself for that measurement very big impact will have a customer experience. Usually customers can rate you much lower due to the bad communication experience even if their problem was not complicated.

Calculation Method / Formula:You can measure it on a scale from 1 to 5 representing the amount of your customer’s effort.

Should be High or Low?:Target is the minimum effort of your customer. If the results are far from the target you should investigate and try to improve your product or services to be more user-friendly and reliable.

Description:The most used way to monitor sales cycle is to start from the client’s entering till an end when the sale is closed. That metrics depends on your offer and client target. Times will vary depending on number of items your client is going to buy. If you are selling electronic, clients need to get first all technical questions answered, in case of cloths you need to consider time for try on etc.

Should be High or Low?:If sales cycle length is growing by time, you may think about your sales strategies or try to understand what a cause can be.

Description:The most common profitability metrics used for financial decisions. It helps to analyze how efficient/profitable was your investment. Profit vs Investment

Calculation Method / Formula:Net Profit / Cost of investment

Should be High or Low?:The problem with this metrics is that it doesn’t include time. So, it might be misleading. Depending on your investment you may have results immediately or you need to wait longer time for accurate benefit.

Description:Estimate value of the net profit coming from the entire future relationship with a client. It is the total amount of profit that average client is likely to spend over the time while being a client (Customer lifespan).

Calculation Method / Formula:one of the ways to measure LTV is:
Average value of sale * number of transactions * Retention time * profit margin

Should be High or Low?:Lower or higher number depends on type of your products or services. You can set some target and with correct investments in development and marketing strategies you can try to increase that number.

Description:It is the percentage of a market taken by your company or product earned over a specified period of time. This information is important to track because it can have a high impact on all your campaigns and success of your products or services.

Should be High or Low?:Usually 100% target is risky and not really pay off the effort needed to be taken. But it is important to be aware of changes on the market and react in proper way.

Description:The number will depend on range of your offer and satisfaction rate of your customers. It measures how many of your customers are coming back to buy another product or service from you.

Calculation Method / Formula:number of customers who came back to buy another product / number of all customers who bought your product at least once

Description:That metrics can be used to measure the loyalty or satisfaction of a customer. It shows the quality of relationship between customer and your company. The metrics numbers come from respondents/customers. NPS above zero usually is taken as good result. Respondents who rate your company are usually separated in tree groups: Promoters, Detractors and Passives. On average Promoters buys more, stay loyal customers, or even promote your company among other potential customers. The Net Promoter Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. Number of Passives increase the total number of respondents, and due to that it lowers down the final NPS.

Calculation Method / Formula:% of promoters – % of Detractors

Should be High or Low?:If the number is going down through a period of time, there might be some problem between your company and customers.

Description:Brand Awareness measures your company label. Does your company, your company logo and products are recognizable among your target group.

Should be High or Low?:This is very crucial metrics that should go together with the quality. Bad reputation with high brand awareness can damage your company very badly.