Key Performance Indicators, or KPIs, are indicators that measure issues. It’s about hard numbers. For example, a KPI could be the ratio between requests for quotations and effective sales. To properly measure and know what you’re getting out of your CRM strategy, maintaining KPIs is a good practice. What are good KPIs for managing customer relationships?
Who isn’t caught up in day-to-day affairs? Unfortunately, that could well mean that you end up working mostly in a reactive way, rather than proactively engaging with your customers. By tracking the last contact and determining how long ago you should allow that to be, you can keep in touch. Sometimes fresh contact can be very targeted with additional information or an offer, but an informal phone call asking how things are going and if everything’s still working as desired can sometimes be very fruitful!
Response per (potential) customer
Do you know the number of responses to your customer acquisitions? By measuring this, you get a good idea of how much effort will be required by the time of the actual action. The action you measure is something you decide for yourself: a whitepaper download, a quote request, or a purchase.
Do people often cancel their subscription to your newsletter? Are your e-mailings being read? Are people clicking through? How often do or don’t people act on a quotation? These statistics provide insight into the effectiveness of your CRM strategy.
A complaint is a treasure! How many complaints are coming in? What are the complaints about? How quickly are they addressed? Are they satisfactorily handled? Complaints help you make the organization better, and as such, a KPI focused on complaints is an essential part of your CRM strategy.
Sale response time
Regarding lead generation: how soon do you get in touch with interested parties after they’ve, e.g., completed a form or requested information? The response speed can affect whether or not a customer takes action. At what point does a lead get away, and when can you say you’ve secured it? As an organization, this gives you insight into how quickly you should act. Responding too quickly may come across as seeming forceful; responding too slowly may appear lax. What’s the ideal response time for your organization?
You know how much effort is needed for action to be taken. You know how long you have to wait for the ideal moment to make contact. What’s your conversion rate target? From lead generation to whitepaper download, from whitepaper to quote request, and from quote request to purchase? If the numbers are lagging: does the product need adjustment, does the information need to be improved, are you focusing on the right audience? If no conversion takes place, you need to find out why.
There are many other KPIs; what these are depends on the organization’s objectives. Make sure you’re measuring the right thing! For example, which is more important: the duration and number of customer-service phone calls, or customers’ level of satisfaction with those calls? Are you measuring new business, or is one of your KPIs the expansion of your relationship with existing customers? Are you measuring all leads, or just the high-quality leads (and how do you determine that)?