Winning KPI

KPI for Measuring of Customer Conversion Rate posted in category CRM

WinningKPI - CRM - KPI for Measuring of Customer Conversion Rate posted in category CRM Oana Boteanu This indicator is for measuring the customer conversion rate of CRM efforts. This is calculated per CRM effort, and it measures the amount of customer converted, in a given time period.
For instance, a company puts in place a system which sends personalized emails to their loyalty card holders, with promotion codes for recommended products. After a time period (e.g. 3 months) the company may measure the conversion rate, and calculate how many of the individuals exposed have been converted into customers and made a purchase.
The foundation of CRM is to study and understand the customer, and tailor your business products/services to their needs, or convince the customers that you have the solution to their needs. However, in order to understand whether the CRM efforts of your company are successful, you need to measure the effectiveness of these efforts. The Customer Conversion Rate KPI is a very useful tool to measure the effectiveness of CRM efforts.

Formula:
Total converted customers / Total audience x 100

KPI Unit: %

KPI Time Frame: update monthly, quarterly or at the end of CRM Campaign/Effort

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

Useful KPI? Download KPI as a .BSC project or start a web-based KPI project.

Ideas suggested by WinningKPI community:

Here are comments:

KPI Expert Example:

A refrigeration company has collected data about their customer base- restaurants, and created a campaign for fine dining restaurants.
They sent personalized emails to the restaurants chefs offering products customized to their business type.

Total audience: 100 chefs
Total converted customers (chefs that purchased) : 20

Customer Conversation Rate:
20/100 x 100 = 20 %

Hence, 20% of the audience has been converted into customers

Oana Boteanu | + | October 1, 2012 at 5:36 pm

×

Have something to add? Have some more thoughts? Help others and earn 5 credits!

×

Sign in to comment Please, register (there is a button 'Become a member of WinningKPI community') in the right sidebar or sign in to leave comments. It is free and more - you will have scores for each comment you post.

Articles in CRM category:

Relevant articles:

Become a member of WinningKPI community

Manage your KPIs with BSC Designer software

Random KPI requests: