WinningKPI - CRM - KPI for Measuring of Average CRM Time Effort per Customer posted in category CRM KPI details: This indicator is for measuring the average time effort that the company is devoting to CRM per customer, in a given time period.
This is calculated by dividing the total time spent on CRM efforts by the total number of customers, in a given time period.
This measurement is important in monitoring CRM and identifying whether or not enough effort is put into maximizing customer relationship, and of course if the CRM systems and strategies are bringing back returns.
This KPI can be used with other CRM KPIs such as Customer Engagement Ratio, Total CRM cost, Sales Growth, Customer Loyalty etc.
By comparing these KPIs the company can measure trends of success, plateaus or failures. This will give an accurate picture of how well the company is using the CRM systems and what can be improved in order to maximize business performance.
Formula:
Total time dedicated to CRM/ Total customers
For example, if a company measures the CRM time effort over a month period, and the total time is 300 hours. This can include FTE time dedicated to customer research, maintaining databases, creating strategies, contacting customers etc.
If the total amount of customers per that month was of 2000, then the average is:
300h/2000 customers = 0.15 h per customer
Whether this figure is high or low is highly dependent on company type, product or service type, market, etc.
KPI Unit: time
KPI Time Frame: update quarterly or annually
Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
Customer relationships are essential to business success for factors such as:
- It costs up to six times or more to get a new customer than to sell to a current customer
- Loyal customers that make repeat purchases spend on average around 30% more than new customers
- Loyal customers are more likely to recommend the brand and deliver positive word of mouth marketing
For the reason above and many others, time effort put into CRM activities is likely to be directly proportional with business growth.
A close monitoring of this KPI will give clear indication of ROI (return on investment). For instance, having a clear picture of this figure will give you understanding of how much benefit would bring to your business if you double the time effort for CRM activities per customer.
Oana Boteanu | + | October 1, 2012 at 5:41 pm
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