KPI for Measuring of Average CRM Cost per Customer posted in category CRM

WinningKPI - CRM - KPI for Measuring of Average CRM Cost per Customer posted in category CRM

This indicator is for measuring the average cost of CRM, calculated per customer in a given time period.
This is calculated by dividing the total cost that the company invests in CRM, by the total number of customers, in that given time period.
This KPI can be used with Average time dedicated to CRM per customer, Sales Growth, Performance Growth, Customer Satisfaction etc. When used with other CRM KPIs it can give clear indications of market position, especially in terms of competition, budget allocation, influence on results (low cost may be the cause of poor customer relationships) etc.

Formula:
Total CRM cost/ Total number of customers

KPI Unit: money

KPI Time Frame: update quarterly or annually

Posted by Oana Boteanu | Help to protect community: Flag for moderation

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Here are comments:

It’s still a current debate what the CRM cost per customer should be. However, lately CRM has become a competitive advantage for businesses and the investment has been growing.

Let us take the following example of how to calculate the Average CRM Cost per
Customer KPI:

Period: 1 year

CRM Cost: 9.5 million

Total number of customers: 1000 000

Average CRM Cost per Customer:
9500 000 / 1000 000 = $9.5 per customer per year
Oana Boteanu | + | October 1, 2012 at 5:40 pm

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