Measuring of CRM System Effectiveness

WinningKPI - CRM - KPI for Measuring of CRM System Effectiveness posted in category CRM

KPI details:

This indicator is for measuring the effectiveness of the CRM system. In other words, it measures how effective the CRM system is for the company in terms of managing the customer relationships.

This can be measured via numerous tools, with surveys being one of the main options.

A company may choose to survey themselves in terms of CRM effectiveness and compare against competition, customer surveys etc.

Please see below factors to be taken into consideration when measuring CRM effectiveness:

- Information storage: is information stored in a systematic/ accessible/time saving manner?

- Information management

- Information accuracy and relevance: how relevant and accurate is the information? Does it increase the company’s understanding of their existing and potential customers

- Communication methods (via what communication channels are the customers approached? How effective is this?)

- Areas of improvement

- System errors, information loss

- Impact on sales performance, sales forecast etc.

The manner of measuring this KPI may differ from one company to another, however, the common goal is to maximize this KPI.

This could be measured from survey results through ranking scales (1-5, 1-10), or could be measured as a % based on individuals factors etc.

Formula:

Effectiveness % from survey results (e.g. 80 % effectiveness)

Effectiveness ranking from survey results (e.g. 8 out of 10)

KPI Unit: %, ranking

KPI Time Frame: update annually

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

Ideas suggested by WinningKPI community:

Here are comments:

Let’s take the following example:
Last year, Company A has carried out surveys measuring the CRM system effectiveness over one year (based on internal and external surveys).
The final rankings showed a 60 % effectiveness, which did not bring an excellent return to the company.
Using other KPIs, the company identified that some of the reasons for the low effectiveness were a low budget system, low FTE effort and poor staff training.
For these reasons the company had to reallocate budgets and increase the CRM budget for the next 2 years.
After two years the CRM system effectiveness ranked 90 % effectiveness, which can bring up to 20-30% increase in business performance.
Oana Boteanu | October 1, 2012 at 5:09 pm

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