Every CRM Analytics Expert Should Track These 6 Metrics
A robust contact center CRM records terabytes of customer data, tracks countless metrics, and provides advanced analytics. If you know how to make use of it all, you’ll have a powerful tool at your disposal. But gathering that information is pointless if you don’t know what’s important…and why.
1. Customer Retention Rate
Your retention rate can have a big impact on your company’s bottom line: It costs six to seven times more to attract a new customer than to keep an existing one. This metric can also give you a quick but accurate picture of whether your customers are satisfied with the service experience you’re providing. Over 80% of consumers who switched brands would have stayed if the company had taken steps to address their dissatisfaction, and 60% have stopped doing business with a brand due to a poor customer service experience.
2. Customer Lifetime Value (LTV)
Just as the name suggests, this CRM metric predicts what your company will earn from an individual over their “lifetime” as your customer. LTV is based on purchasing patterns and the typical length of time a customer remains engaged with your brand. This metric helps you prioritize your marketing and proactive communication efforts.
3. Cross-selling and Upselling
Cross-selling refers to suggesting a consumer purchase products that are complementary to what they’ve already bought (or are in the process of buying), while upselling encourages them to purchase a more expensive version of the item they’re considering. To get a full understanding of the strengths and weaknesses of your agents and store associates, you should look at both how often they make an attempt to cross-sell or upsell, and how many of those attempts are successful.
4. Customer Referrals and Likelihood to Recommend
While these are technically two separate metrics, they both help you answer the same question: Are your customers happy enough that they’re singing your company’s praises to their friends? The more concrete number is customer referrals, but it can be misleading because it only shows you how many consumers took the recommendation, not how many customers gave it. Likelihood to Recommend (which often comes in the form of a Net Promoter Score) can be misleading in the other direction, though; just because someone is willing to recommend your company doesn’t mean they’ve actually done it. Looking at the two metrics side by side will help you get a clearer picture.
5. Sentiment and Emotion Tracking
What emotions are your customers conveying when they talk to (and about) your brand? You can look at trends at a high level by tracking positive and negative sentiment, or you can dive deeper and assess more nuanced emotions like anger, joy, and surprise. This CRM metric is a good way to gauge how your customers feel about your company in general, but consider going further by identifying the topic at hand as well. Doing so will give you more in-depth insights into what’s causing the emotions.
6. Loyalty Program Usage
Loyalty program usage comprises a variety of individual metrics, such as:
- How frequently do customers use their loyalty cards?
- What percentage of customers take advantage of the rewards offered?
- Which rewards are most popular?
- Where do customers tend to redeem loyalty points—online or in-store?
Depending on how your company’s program works, you’ll need to determine which specific metrics will be most useful to track.
What’s the Point?
Of course the metrics are all just a bunch of numbers until you use them as a basis for your decisions. So before you decide to add a new one to the mix, ask yourself, “What’s the point?”
Once you start thinking in those terms, you’ll quickly see the potential actionable information that could be generated by analyzing various combinations of the numbers you’re tracking. For example, do your high-value customers use your loyalty card less often than the average? Or, is a customer with a history of positive-sentiment interactions more likely to take advantage of an upsell offer?
These more complex analytics can also feed into your larger efforts to improve your customer experience, increase revenue, and more. For example, you can use CRM metrics to:
- Personalize upsell and cross-sell offers
- Proactively engage e-commerce shoppers
- Enhance your Voice of Customer information
- Intelligently escalate from self-service to a live agent
Astute’s CRM tracks trends and delves deep into consumer behavior and attitudes with comprehensive reports and analytics tools. It can help you make continual improvements to your business with clarity about where you stand in your customer’s mind. Learn more and request a personalized demo.