WinningKPI - CRM - KPI for Measuring of Sales Forecast Accuracy Increase due to CRM posted in category CRM KPI details: This indicator is for measuring the increase in sales forecast accuracy due to CRM effort. In other words, it looks at the impact that CRM has on improving the company’s sales forecast accuracy. This is calculated by measuring the increase in sales forecast accuracy due to CRM, as part of the total sales forecast accuracy increase.
In a nut shell, well developed CRM practices (system, strategies, staff practices) are giving the company a strong link with the customer, and a strong understanding. Hence, when the company understands customer behavior and has that channel of interaction due to strong relationships. Therefore, the company is able to manipulate the customer buying behavior and grow business. Hence, the sales forecast accuracy will grow.
For the reasons above, it is important for companies to measure this KPI and understand the % Increase in Sales Forecast Accuracy due to CRM.
Formula:
Total Sales Forecast Accuracy Increase due to CRM / Total Sales Forecast Accuracy Increase x 100
KPI Unit: %
KPI Time Frame: update quarterly
Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
Example (hypothetical values):
Company A has measured sales forecast accuracy for the past five years, experiencing on average a 2-4% growth annually.
Last year the sales forecast increase was of 4 %, with a growth of 2 % from CRM effort.
Hence, the total sales forecast accuracy growth % due to CRM effort it:
0.2/0.4 x 100 = 50 %
Hence, for last year the CRM effort has brought up to half of the total sales forecast (almost an ideal value, unlikely to occur in real life).
Oana Boteanu | + | October 1, 2012 at 5:26 pm
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