WinningKPI - CRM - KPI for Measuring of Customer Acquisition Rate posted in category CRM KPI details: This indicator is for measuring the customer acquisition rate. In other words, in measures the % of new customers acquired in a given time period.
Strategic CRM practices can have a positive impact on the customer acquisition rate, helping companies to minimize costs in acquiring and retaining new customers.
Let us take an example of how CRM impacts on customer acquisition:
A broadband company (e.g. Orange) provides both home and mobile broadband. A customer that already has a broadband connection (or mobile phone connection) with Orange is very satisfied with the service due to the company’s efforts on customer relationships, such as good customer service, billing service, technical support etc. In this situation, the company has a high chance to ‘acquire’ the customer for their home broadband service, and hence improve customer acquisition on that department, due to their well managed customer relationships.
Customer relationships also influence word of mouth which can have a great impact on customer acquisition performance (although it could be difficult to measure).
Formula:
Total number of customers acquired/Total customer base x 100
KPI Unit: %
KPI Time Frame: update annually
Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
Example (hypothetical values):
Let’s assume the following for the example above.
Last year Orange had a customer acquisition rate of 15% (of the entire customer base).
They have introduced a new CRM effort and invested highly in the system to improve their customer relationship and overall business performance.
Current year customer acquisition rate:
Total number of customers acquired: 80 000
Total number of customers: 400 000
Customer Acquisition Rate:
80 000/ 400 000 x 100 = 20 %
Hence, the introduction of the new CRM system has helped to increase the customer acquisition rate with 5%. This could highly increase the company's profits.
Oana Boteanu | + | October 1, 2012 at 5:16 pm
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