We have already established in our previous blog the guide to choosing the right CRM for your business. But simply implementing the CRM system is not enough, you also need to know how beneficial it is for your business. Since investing in the right Customer Relationship Management (CRM) system is significant for any business, measuring its overall performance is also equally essential. In this blog post, we will look into the crucial metrics that you can track to measure the success of your CRM implementation.
1. Sales Cycle Length
It’s no wonder, that a CRM is used to increase the productivity of the sales team and close the deals in a shorter period. Measuring sales cycle length will help you understand the impact of your CRM on the sales team which indicates an increase in the productivity and shortening of their sales cycle. Just so you know, having CRM Software can help decrease the closing time of a deal by 14%. So, analyzing this metric becomes even more essential when your average deal closing time is 3 months or more, isn’t it?
2. Length of each sales pipeline stage
Now that you know how to measure the Sales Cycle, analyzing the length of each sales pipeline stage is crucial. Your sales team should be able to manage their leads and should always know what their prospects need, or what was the last conversation they had. Measuring this metric gives an estimate to the sales team of when a deal might close.
There are various stages in a sales pipeline. Taking the example of Berry CRM, the several sales pipeline stages are Assigned Leads, Follow, Quoted, Potential, Future Prospect, Won, and Lost. As their names suggest, it indicate the meaning of each of these sales stages in Berry CRM. Did you know? Berry CRM is the most cost-effective solution in the UAE.
3. Close rate
The close rate metric means the number of deals you close out of the number of deals you have in the sales pipeline. Say, for example, you have 1000 leads in your pipeline and you close 100 deals, that means the close rate is 10%. This sounds amazing, right? But what if, I tell you a company that has a 5% close rate earns more money than you? Yes, you read it right! Simply analyzing the close rate is not enough, you also need to understand the average deal size of every deal you close.
To simplify it for you, let’s look at this example:
Company 1 has a close rate of 10%.
Company 2 has a close rate of 5% but makes more money than Company 1. How?
The answer to this is a higher average deal size. How much is the actual worth of your closed deals? So, to efficiently measure this metric, analyze the before and after scenarios leading to the implementation of the new Best CRM Software in UAE for the past 6 months. If the close rate has increased it means the CRM is working for you.
Who doesn’t want their customers to go for an upgraded product or service? Every business wishes for it, doesn’t it? So, when a customer upgrades their purchase, by choosing a higher or more expensive version of your product or service, it can be measured with the Upsell metric. Real Estate CRM Dubai can help you increase the upsell rate by providing the necessary information with which you can predict what kind of leads are most likely to be turned into an upsell direction.
Along with your sales metrics, you can also measure the effectiveness of your CRM by assessing the Marketing metrics. The marketing metrics are Customer Lifetime Value, Customer Acquisition Cost, and Revenue generated from each campaign.
Measuring the success of your CRM implementation goes beyond the initial deployment. For effective CRM implementation, make sure your CRM does its job thoroughly. A faulty CRM system will bring in more work and decrease your productivity. So, make sure you choose a CRM which works best for you. Give Berry CRM a try, with 30 days of free trial, you can easily identify if it is a match made in heaven.