Meterweb Division dedicated to the tourism sector. Applications and communication for Travel Agencies, Tour Operators, Hotels, Institutions for the territory
CRM or Customer Relationship Management is an important component in today's business world and in order for your company to get the most out of this management system you will need to know the many different CRM metrics that are available. This answer will outline some of the most common CRM metrics you should be aware of. The different aspects of CRM metrics include:Customer Churn – It is also known as customer attrition or customer turnover. It means that customers or subscribers have stopped doing business with the company. It is very important for any company to retain its customers because it is relatively a cost-effective way to retain rather than acquire new customers. Customer churn hinders the growth of a company hence; one should calculate the customer churn in a given period of time. The simplest formula of customer churn is to divide the total number of customers at the beginning of a particular period by the number of customers lost during the period. Customer Acquisition Cost (CAC): It is the cost per sale of a particular product/service sold by a particular business. With CAC, a business can accurately measure their marketing expenditure by looking at the amount of money they have spent on capturing every possible customer. A company's CRM can give a comprehensive overview of all the costs that are associated with marketing a product or service, including the amount of money that they are spending on purchasing leads and sending out emails.CAC = ___Total Acquisition Spend___ Number of Customers AcquiredConversion Rate – For any sales and marketing campaign, it is crucial to measure the conversion rate. To measure this, you can create the goal of leads as conversions or sales as conversions, depending upon the campaign’s objective. The number of leads generated from different channels such as SEO, SEM, Social media ads, display ads, email marketing, etc are stored in a categorical format. Once a lead becomes a customer, it is tracked as a first-time buyer (FTB). Click to lead or lead to sales conversion rate is usually calculated on the average sales cycle which could be 1-3 months depending upon the purchase behavior of your target audience.Customer satisfaction scorecard - An overall scorecard shows the progress of each customer through the CRM system. This scorecard can be used to show what changes need to be made in order to improve customer service. If there are areas in your marketing plan that are causing dissatisfaction from time to time then it may be time to make these changes to ensure you are meeting your customers' needs.Customer Relations Index (CRRI) - This metric is extremely important for analyzing the relationship between the customer and the company. The customer relations index can be divided into four categories. These are satisfaction, return of investment (ROI), financial ratios and other factors that are related to customer satisfaction. A good CRRI will show how well a company handles customer service, has a positive feedback ratio, and how satisfied the customer is with the service or product being sold.Customer Lifetime Value (CLV) – It is calculated as the total monetary value generated by a customer to a business during the tenure of his relationship with the company. A company with a high customer lifetime value will typically have higher profits and less financial risk. The higher the customer lifetime value, the more likely that a company is to generate sales and profits over a period of time. It is one of the key metrics as this shows that the investment in CRM leads to a significant increase in CLV.In conclusion, keep in mind that metrics are the building blocks of a successful marketing plan. Metrics should be used as tools to help the company to measure its success and failure. In order to get the most value out of CRM metrics, it is important to have a company that offers a variety of different metrics in order to test different metrics before using them with marketing campaigns and sales efforts.
CRM or Customer Relationship Management is an important component in today's business world and in order for your company to get the most out of this management system you will need to know the many different CRM metrics that are available. This answer will outline some of the most common CRM metrics you should be aware of. The different aspects of CRM metrics include:Customer Churn – It is also known as customer attrition or customer turnover. It means that customers or subscribers have stopped doing business with the company. It is very important for any company to retain its customers because it is relatively a cost-effective way to retain rather than acquire new customers. Customer churn hinders the growth of a company hence; one should calculate the customer churn in a given period of time. The simplest formula of customer churn is to divide the total number of customers at the beginning of a particular period by the number of customers lost during the period. Customer Acquisition Cost (CAC): It is the cost per sale of a particular product/service sold by a particular business. With CAC, a business can accurately measure their marketing expenditure by looking at the amount of money they have spent on capturing every possible customer. A company's CRM can give a comprehensive overview of all the costs that are associated with marketing a product or service, including the amount of money that they are spending on purchasing leads and sending out emails.CAC = ___Total Acquisition Spend___ Number of Customers AcquiredConversion Rate – For any sales and marketing campaign, it is crucial to measure the conversion rate. To measure this, you can create the goal of leads as conversions or sales as conversions, depending upon the campaign’s objective. The number of leads generated from different channels such as SEO, SEM, Social media ads, display ads, email marketing, etc are stored in a categorical format. Once a lead becomes a customer, it is tracked as a first-time buyer (FTB). Click to lead or lead to sales conversion rate is usually calculated on the average sales cycle which could be 1-3 months depending upon the purchase behavior of your target audience.Customer satisfaction scorecard - An overall scorecard shows the progress of each customer through the CRM system. This scorecard can be used to show what changes need to be made in order to improve customer service. If there are areas in your marketing plan that are causing dissatisfaction from time to time then it may be time to make these changes to ensure you are meeting your customers' needs.Customer Relations Index (CRRI) - This metric is extremely important for analyzing the relationship between the customer and the company. The customer relations index can be divided into four categories. These are satisfaction, return of investment (ROI), financial ratios and other factors that are related to customer satisfaction. A good CRRI will show how well a company handles customer service, has a positive feedback ratio, and how satisfied the customer is with the service or product being sold.Customer Lifetime Value (CLV) – It is calculated as the total monetary value generated by a customer to a business during the tenure of his relationship with the company. A company with a high customer lifetime value will typically have higher profits and less financial risk. The higher the customer lifetime value, the more likely that a company is to generate sales and profits over a period of time. It is one of the key metrics as this shows that the investment in CRM leads to a significant increase in CLV.In conclusion, keep in mind that metrics are the building blocks of a successful marketing plan. Metrics should be used as tools to help the company to measure its success and failure. In order to get the most value out of CRM metrics, it is important to have a company that offers a variety of different metrics in order to test different metrics before using them with marketing campaigns and sales efforts.
CRM or Customer Relationship Management is an important component in today's business world and in order for your company to get the most out of this management system you will need to know the many different CRM metrics that are available. This answer will outline some of the most common CRM metrics you should be aware of. The different aspects of CRM metrics include:
Customer Churn – It is also known as customer attrition or customer turnover. It means that customers or subscribers have stopped doing business with the company. It is very important for any company to retain its customers because it is relatively a cost-effective way to retain rather than acquire new customers. Customer churn hinders the growth of a company hence; one should calculate the customer churn in a given period of time. The simplest formula of customer churn is to divide the total number of customers at the beginning of a particular period by the number of customers lost during the period.
Customer Acquisition Cost (CAC): It is the cost per sale of a particular product/service sold by a particular business. With CAC, a business can accurately measure their marketing expenditure by looking at the amount of money they have spent on capturing every possible customer. A company's CRM can give a comprehensive overview of all the costs that are associated with marketing a product or service, including the amount of money that they are spending on purchasing leads and sending out emails.
CAC = ___Total Acquisition Spend___
Number of Customers Acquired
Conversion Rate – For any sales and marketing campaign, it is crucial to measure the conversion rate. To measure this, you can create the goal of leads as conversions or sales as conversions, depending upon the campaign’s objective. The number of leads generated from different channels such as SEO, SEM, Social media ads, display ads, email marketing, etc are stored in a categorical format. Once a lead becomes a customer, it is tracked as a first-time buyer (FTB). Click to lead or lead to sales conversion rate is usually calculated on the average sales cycle which could be 1-3 months depending upon the purchase behavior of your target audience.
Customer satisfaction scorecard - An overall scorecard shows the progress of each customer through the CRM system. This scorecard can be used to show what changes need to be made in order to improve customer service. If there are areas in your marketing plan that are causing dissatisfaction from time to time then it may be time to make these changes to ensure you are meeting your customers' needs.
Customer Relations Index (CRRI) - This metric is extremely important for analyzing the relationship between the customer and the company. The customer relations index can be divided into four categories. These are satisfaction, return of investment (ROI), financial ratios and other factors that are related to customer satisfaction. A good CRRI will show how well a company handles customer service, has a positive feedback ratio, and how satisfied the customer is with the service or product being sold.
Customer Lifetime Value (CLV) – It is calculated as the total monetary value generated by a customer to a business during the tenure of his relationship with the company. A company with a high customer lifetime value will typically have higher profits and less financial risk. The higher the customer lifetime value, the more likely that a company is to generate sales and profits over a period of time. It is one of the key metrics as this shows that the investment in CRM leads to a significant increase in CLV.
In conclusion, keep in mind that metrics are the building blocks of a successful marketing plan. Metrics should be used as tools to help the company to measure its success and failure. In order to get the most value out of CRM metrics, it is important to have a company that offers a variety of different metrics in order to test different metrics before using them with marketing campaigns and sales efforts.
