Performance Tools for CRM

Managing CRM is a good idea when running a business. However, managing CRM through metrics use is a better idea since it makes you consider business aspects you never knew.

Customer relationship management, otherwise known as CRM, is an area of management that has to do with making sure that your business customers are well taken care of and that they are kept satisfied with the products and services you provide. CRM can be pursued with any means necessary to make sure customers come first. However, managing CRM through metrics is also possible. This will give you an equal, if not better, understanding of how your business works in terms of customer satisfaction.

Metrics are basically units that are used for measurement and evaluation purposes. This allows one to see how well a business is performing, as well as take notes on what aspects of the business need improving or adjusting. When used for customer relationship management, metrics become the basis of determining the degree of satisfaction of a customer in relation to the products or services a business is offering to the consuming public.

The advantages of using metrics to manage customer relations cannot be discounted. This is because metrics are designed to make management activities easier and more efficient since these are based on actual information that have been gathered through quantitative means and converted to give a person a quantitative view on how a business performs.

The first advantage is that customer relations can be more easily managed with the use of metrics. As said by the reason stated above, this aspect of management is supported by numerical information, giving the person concerned a concrete basis on his decision-making function. Instead of relying on subjective or abstract information, the manager can now rely on actual data that can be subjected to computation and evaluation.

Another advantage is that the evaluator will have a stable level from which to improve. This gives the manager a concrete goal to look forward to. In short, with metrics, the manager can set a numerical goal that can be reached in terms of improvement. Instead of relying on mere assumptions and abstract observations, there will be a statistical starting point that the manager can use.

One more advantage is that any change can be easily related to observed improvement. This means that if there is a rise in the numerical value of performance, it means that the business is functioning better. This means that the manager can readily see that a certain change or adjustment will have a certain effect, which either raises or lowers the performance score, allowing him to make a more effective decision.

Another advantage is that managing CRM through metrics allows a manager or owner to address a problem with statistical data as well. Since the problem was determined with the use of statistics, the same can be addressed also with the use of statistics. For as long as the manager or owner knows what the numbers mean and what implications they hold in terms of the performance of the business in the area of customer relationship management, the he can easily make recommendations for improvement or implement those recommendations himself. This way, the obtained information, which is the same information that is relied upon, will remain concrete and supported by numerical data.

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Customer relationship management, known as CRM, is a very important aspect of any business. Looking out for and taking note of important CRM indicators may save or destroy your business.

Customer relationship management, otherwise known as CRM, is a management aspect placed at the very heart of managing the venture itself. This is because these relations form the foundation of the goodwill of a business, which has the potential to be the most valuable possession of the venture. Without goodwill, a venture will surely fail. Customer relationship management is concerned with the formation, preservation, and improvement of the relationship between the client and the manager. It is for this reason that there are important CRM indicators that any manager or owner must be aware of. These indicators will enable the manager or owner to effectively deal with the guests and give them what they want, as offered by the business. This will be the starting point from where the reputation of the venture will be based upon.

So, what are some indicators of client relations that a manager or owner must look out for? The first is client satisfaction. This measures how much the guest is satisfied with the product or service offered by the venture. Also, this shows the probability of the client coming back. Customer satisfaction can be easily seen with the way the client converses with the business staff and the frequency the guest avails of the products and services of the venture. For a more concrete and specific idea on how satisfied a customer is, a comment or rating sheet can be given for them to fill out and return to the manager or the owner. This will let them know that the management is interested in their feedback, giving the clientele a better impression of sincerity in business.

Another valuable indicator of customer relations is the availability of a grievance mechanism. This is for the benefit of the clientele, where they are given the opportunity to let the management know certain pieces of information regarding their products or services that the client deems to be improper, illegal, or otherwise against the interests of the client. This will include matters regarding warranties, product satisfaction, service satisfaction, guest assistance, and other matters that the customer deems important to be brought to the attention of the management. This does not only allow the guest to air out problems or concerns regarding a certain product or service, it also allows the manager or owner to improve on the currently existing product or service. This way, there would be a better avenue of communication between the guest and the businessman, ultimately resulting in harmonious conduct of business every time.

Customer relations can make or break a venture. Information travels fast among the clientele, and even the slightest oversight or abuse will be quickly disseminated to the consuming public before they know it. This is one of the reasons why a business must always take care of its customers, also pursuant to the saying that, “If I don’t take care of my customers, someone else will.” Taking note of the important CRM indicators will not only make your customers happy and satisfied, it will also result in the survival and expansion of the business.

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Human resources are arguably the most important resources an organization could have, and having a good way to manage them is crucial. Hence, the interest of HR in CRM.

A vital responsibility of any organization lies in managing its own people. Employees and staff make up the organization, and are arguably among its most important assets, far greater than any financial ones. Hence, it is within any management’s interest to be able to take care of its employees and ensure that they are not only productive, but also satisfied and happy. This task falls square on the shoulders of the human resources department or its equivalent. In recent years, customer relationship management, a strategy for dealing with clients and customers, has been used to great effect on employees, too. The interest of HR in CRM lies in its systematic approach to managing relationships. The resulting hybrid or offshoot is usually called ERM or employee relationship management.

Now, of course, CRM and ERM would have similarities, but also differences, which means that the processes and tools of CRM would not directly translate to ERM. But in terms of the methodologies used and the software tools applicable to managing customer relationships, in many cases, they can be used for employees with just minor adjustments. This is due to the aforementioned similarities in caring for employees and customers and in the approach to doing both based on objective measurements.

For instance, small organizations that are just starting out would be concerned with new acquisitions, both in terms of clients and in terms of manpower. This would involve the creation of the infrastructure needed to handle greater numbers, as well as the implementation of effective marketing and promotional campaigns. Keeping track of new acquisitions can be done for both CRM and ERM using similar sets of databases and interfaces.

Customer and employee retention strategies would also be quite alike and may be handled using comparable utilities. These involve working with existing contacts and making sure that they are satisfied enough to stay with the company. In the case of internal contacts, incentive and bonus schemes help improve morale, while in the case of external contacts, it would be the quality of service that is important. Again, the status of existing contacts may be kept in a database and ready access provided via effective interfaces. This would streamline both internal and external relationship processes quite a bit.

Human resources should embrace new technologies, especially such useful and ready-made ones as CRM software tools. Managing people, whether employees or customers, may seem like a tricky, complex business, and it is, but having and using the right tools can help immensely. In essence, objective management approaches make use of the judicious choice of metrics and key performance indicators in order to measure progress and achievement. Applying this concept to the specific task of dealing with people both inside and outside the organization gives rise to the ERM and CRM frameworks, respectively. Based on a sound business plan detailing the organization’s goals and objectives, these systems of metrics and careful monitoring are great utilities. The stake of HR in CRM and related technologies and systems cannot be understated.

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How to manage CRM efficiently with KPIs is not a problem when you know what key performance indicators to look out for. All it takes is patience and open mindedness.

Key performance indicators or KPIs have a lot to do with almost any activity – whether it is for profit or for some other purpose. This is because of the fact that key performance indicators reflect all the aspects of a particular activity, bringing forth what aspects seem profitable or effective and which ones are not. In fact, KPIs have a direct link to the possibility of improvement for any activity. This proves even true for the aspect of Customer Relationship Management of a business, which is also known as the CRM. Thus, the question of how to manage CRM efficiently with KPIs comes into mind.

So, how do you exactly manage your CRM in your venture with the use of KPIs? The first step to this process is always the most basic – get to know what KPIs to consider in the first place. Taking note of the performance indicators in client relations will pave the way for the succeeding steps. Now, the key performance indicators for customer relations may well lie exclusively with the customers themselves because they are the very ones who can tell whether or not your customer relations management is effective or not. Also, they are the ones who can tell if you are running a good business or not. Thus, you must consider what KPIs there are to get a general idea on how you are doing in terms of how satisfied your customers are with your products or services.

The first key performance indicator to consider is the number of customers that visit your business. Of course, the more clients there are, the better your business is going, since generally, more customers mean more profit and the generation of profit is basically and usually the paramount consideration in running a business. This will also mean that word goes around and customers are satisfied with your products or services – or they are just curious.

Another key performance indicator is feedback. Feedback, comments, and suggestions can be obtained from clients in a variety of ways. Although most businesses make use of feedback forms, there are those who directly communicate with their customers to get this. For the latter method, there is a greater chance of success since the owners or managers can directly and quickly obtain feedback results and make changes accordingly, if there is a need for change, that is.

One more key performance indicator is how frequent a client comes back to avail of your products or services. Of course, this is not easily measured since no business owner or manager is expected to recognize every single guest they get. However, once a customer frequents a business, the manager or owner will eventually recognize the customer and in time, will get a general idea on how many times the said client visits the business. Also, this will be more easily found when the owner or manager becomes more familiarized with the customer to the point that the manager or owner can give the customer what he wants without even asking for it.

Once you have obtained all your key performance indicators, you can already produce a general idea on what aspects of your customer relations you should improve or maintain. It will basically cut out your work for you. Once you know what you should observe or look for, how to manage CRM efficiently with KPIs will not be a problem for you.

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Customer relationship management forms an important part of many business strategies; and hence, using powerful tools such as CRM metrics properly is vital to the success of many companies.

Customer relationship management is a business strategy that puts focus on creating, maintaining, and improving working relationships with an organization’s clients. It is applicable to almost any organization because, after all, a company that does not put its customers’ interests first is destined for failure. Now, customer relationship management or CRM is no simple strategy, and consists of considering the many varied aspects and processes involved. The most common approach towards getting a handle on such a business system is through the judicious choice and tracking of CRM metrics.

Metrics help managers and employees alike clarify their goals and visualize concretely what success would look like. Some leaders and executives set goals and objectives merely by throwing around buzzwords and other terms that just “sound nice”. While this may seem well and good to them, their employees are more often than not left in the dark as to how to go about fulfilling these unclear goals. Lofty goals, no matter how grand sounding, will not lead to any progress if they are not formulated clearly and in a measurable manner. This is as true for CRM as for any other system or business model.

Metrics help clarify goals because the process of selecting metrics to monitor forces managers to better define what exactly the company’s objectives are. That is, these quantities should be chosen in close association with the formulation of objectives, all the way from the most general down to the most specific. Apart from this, data-based management yields, in most cases, a more accurate view of organizational circumstances and performance. Of course, as with any business strategy, success will depend on proper planning, execution, and follow-through.

Clear goals and a clear way to measure performance, taken together, form the basis for a feedback loop that will be of great help in regulating any company. Since achievement and progress become possible to be measured, managers and employees will be more aware, at all times, whether they are moving closer or further from success.

So, for customer relationship management in particular, metric choice is also quite important, because this will be linked to the objective of the organization initiative. This will be linked to many factors, including the organization’s size, level of maturity, customer base, and so on. For instance, a telecommunications company interested in improving its level of customer service might track metrics, like call time, hold time, number of repeat calls, customer satisfaction, and number of topics discussed per contact. A company dealing in direct sales, on the other hand, might track metrics, like average revenue per salesman, number of repeat customers per salesman, number of new customers, and so on.

CRM metrics are thus as varied and wide-ranging as CRM itself. This should not be overwhelming, but rather should inspire confidence in the fact that metrics should be able to handle matters adequately. That is, backed with the proper strategies, goal-setting, and planning, selecting the right quantities to monitor and then putting in place the right system will yield good results for any CRM initiative.

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CRM management through the use of BSCs is an innovative and effective option in pursing customer relationship management, without the unnecessary expense, and without exertion of unnecessary time and effort.

Customer relationship management has to do with establishing and improving the relationship between the head of a business and its clientele. This is also composed of stages or aspects of operation. Thus, CRM management through the use of BSCs is a very effective idea since you, as the manager or owner, will be managing your customer relations with the use of one of the most effective and economical measurement and evaluation tools – the balanced scorecard.

The balanced scorecard, otherwise known as the BSC, is currently one of the most effective, efficient, convenient, and economical means to perform measurement and evaluation functions in any activity. Also, the method has proven its versatility by having the capability to be applied to virtually almost every single activity for as long as it is composed of aspects of operation. This will make the management of customer relations a lot easier and efficient, for the benefit of the customers in the end.

Using the balanced scorecard for CRM purposes will save your venture a lot more money and time when making use of other measurement and evaluation tools. Of course, you can always dispense with using any tool; however, you risk running your business to the ground because you do not know where you stand in terms of staying in the economic competition. It also makes the entire management function more efficient. This is due to the fact that the balanced scorecard is designed to take note of all the aspects of a particular activity. It can be likened to having a general checkup at the doctor’s clinic. When the doctor checks your whole body, every single part practically gets examined, resulting in a more thorough and specific diagnosis. This is the same in the management of customer relations with the use of the balanced scorecard.

The availability of the balanced scorecard also allows the completion of the entire measurement and evaluation process in a shorter period. In the world of business, time is always of the essence and that even the shortest lag in time may result to the loss of interest of one customer, which, in the end, may prove detrimental to economic activity. With the use of the scorecard, much time is saved. This is due to the timesaving feature of the scorecard. Its ease of implementation and interpretation makes it quick to administer and quick to interpret.

The use of measurement and evaluation tool will always prove beneficial to the conduct of business; in this case, with customer relations. It must always be borne in mind that the customers are the life of a venture. Without them, no business will thrive. Without them, there will be no economic competition to speak of. These are the very reasons why a business must take care of its customers by improving on its customer relations management. Having satisfied customers is always equivalent to having a thriving and successful business. Performing CRM management through the use of BSCs is indeed a beneficial and profitable option for the management of a business. It gives all the benefits of an efficient measurement and evaluation tool without the usual expense of time and resources.

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Customer relationship management is becoming a popular business strategy, and the proper use of CRM KPIs or key performance indicators is one useful tool to maintain and improve CRM performance.

Customer relationship management has, in recent years, become widely recognized as an important business strategy. This basically has to do with the creation of value via obtaining, keeping, and serving highly profitable clients or customers. As can be expected, this is in most cases a multi-faceted process that can get quite complex to implement and monitor. As such, CRM KPIs or key performance indicators are often used to help managers get a grip on the various aspects of customer relationship management.

Essentially, CRM consists of various basic processes. There is what is called new acquisitions or selling existing services or products to new customers. Another is cross selling or selling additional or new products to existing or returning customers. Upselling refers to selling higher-end and more expensive services and products to existing customers. Customer retention would refer to keeping the current customer base happy and coming back for more, which is also related to customer service or support activities and processes. These different aspects of managing customer relationships are all interrelated, and no particular one should be emphasized too greatly over the others.

Keeping track of even just one of these aspects can be a real challenge, especially as the organization gets larger and the procedures get more complicated. The difficulty is compounded almost exponentially when all of the relationships between the various aspects have to be factored in, as well. Hence, it becomes of utmost importance to be able to effectively utilize some sort of tool or paradigm to manage the jumbled mess, and here is where key performance indicators may be of great utility.

KPIs represent a way to measure a very specific performance goal or objective. A KPI in its simplest form would consist of a metric, or a quantity that can be measured, and an objective, which, for instance, would be to increase, decrease, or maintain the value of the associated metric. For example, in organizations with a small customer base, a relevant KPI might include as metric the number of new acquisitions per salesman per month, with the goal of increasing this number by 50%. As another example, in organizations with a sizable but still relatively young or new customer base, a good KPI might have the metric customer satisfaction ratio, with the goal of maintaining this ratio at or above 80%. Many more examples may be given, but the idea behind the use of these indicators remains the same.

It can hence be seen that the use of CRM KPIs is by no means simple. For starters, managers would have to be able to identify the appropriate KPIs, metrics, and objectives for each aspect of the customer relationship management strategy. However, it should also be noted that putting effort into implementing a good KPI system will be well worth it. The KPI paradigm has the potential of describing CRM accurately and usefully, and can greatly aid in maintaining and improving an organization’s performance in terms of its dealings with its various customers. Such potential should not be wasted and should be considered by any CRM manager as worth pursuing.

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Customer relationship management can be improved by being open minded and practical for the customers’ benefit. Here are 10 tips to measure and improve CRM performance scores in your business.

Customer relationship management, otherwise known as CRM, is the central part of customer relations in a business because it forms everything the business has to please the client. To do so, here are 10 tips to measure and improve CRM performance.

First, get to know the customer. Like what Sun Tzu said, “Know thine enemy”; except that, your customers are not your enemies. In fact, they are your best friends. Getting to know your customer is practically like getting to know what they want and how they want it. This way, you can give your product or service in such a way as to induce them to come back.

Second, get client feedback. It is said in the world of business that the best advertisement for a business establishment is the good reputation it has. You will not need flashy neon signs to advertise your business if your clients have good memories of you. They will tell their friends, who will, in turn, tell their own. In no time at all, your business will be well known all over the city.

Third, start treating your clientele as VIP’s. This way, you always put your best foot forward. You always give your best as if you were being visited by the Health Inspector. Customers avail of your business to experience something good.

Fourth, conduct periodical surveys. Through this data-gathering method, you can find out what the customers want. You can study these and eventually come up with a new product or service that addresses these wants. Not only will you be satisfying them, you will have an innovative advantage over the competition as well.

Fifth, listen to your customers. Of course, you can always get feedback and make surveys, but listening to your customers is another thing. This requires you to consider what they have to say, even if what they have to say does not sound good. This makes room for self-improvement.

Sixth, be friends with your customers. This will allow you to relate to them in a more informal manner, and they to you. This gets rid of all the formal inconveniences and tension that tend to get in the way of effective communication.

Seventh, personalize your methods. Leaving a sheet of paper on your customers’ table is yesterday’s method. Leaving a questionnaire as a placemat is an even worse idea. As a gesture of warmth, go table-hopping. Ask each customer what they think about a product or service and ask them how you can assist to make their visit more enjoyable. Treating your customers this way will let them feel you care about them. Not only will you get a direct feed to your business performance in terms of customer relations, you also improve your reputation as an accommodating host.

Eighth, upgrade. You do not have to wait for customer feedback before you upgrade your products and services. Having the initiative to improve further on an already good product or service will let you know almost immediately how the consumers respond to the change. This will give you basis for further developments.

Ninth, throw promotions. These will definitely attract more customers. Also, this will allow you to interact with them directly and get an idea of what they think. Of course, you do not have to go and give out free stuff – just give them something to enjoy for less the price.

Tenth, let your customers know that they are valuable to you. You can do this through a lot of ways, from simply saying “thank you” to giving them freebies on their third visit. Taking note of these 10 tips to measure and improve CRM performance will help you raise your customer relations scores in no time, and with better results.

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With BSC Designer 3.0, there is a possibility to create a strategy maps for CRM, these maps will enable the display of balanced scorecard indicators and relation between them.

The map below was created with the latest version of BSC Designer for the customer relationship scorecard.

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The CRM scorecard was designed as a universal scorecards, giving businesses a possibility to evaluate the performance of Customers Relationship in the company.

KPI Name: Customer Relationship Balanced Scorecard Metrics

Related KPIs: Call-Center, Help Desk, Interactive Voice Response, Customer Profitability, Customer Profiling, Customer Value, Customer Conversion, Customer Loyalty

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Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Customer Relationship Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

• Check Overview KPI Report sample.
• Check Full HTML Scorecard Report sample.
• Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Customer segmentation is a critical means of customer evaluation. It is no secret that not all customers have similar value for a business. For survival and prosperity sake businesses have to make a choice and invest money and effort into building strong relationships with those clients that will bring affluence and success to the company.

However, in spite of all endeavours something may still go wrong and the most promising customers may turn into passive or even dissatisfied clients. Then it is time for your recovery policy to prove its efficiency. If your company can turn dissatisfied or passive customers into delighted and happy clients, if it can cipher out discontentment at its early stages then you can kick-start profitable relationships with your customers anew.

KPI in Excel – Screenshot:

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