How do you actually measure CRM success?
How do you actually measure
success?
You measure success in several ways, we have already discussed a couple of measurements one being increase in revenue but the other increase in productivity is more difficult. What actually makes up the increase in productivity number? Let’s look at some of the elements you can track to determine if you are measuring the productivity number successfully.
Increase in the actual number of accounts that a representative is managing. If under your current plan a representative is managing 400 accounts you would expect them to be able to manage an addition 40 accounts on average across your organization.
If your average weekly meetings across your organization are 2 per rep you would expect that to increase to 3 a week.
Your average close ratio is 4 per ten proposals you would expect that to increase to 4.4 per 10 proposals.
The above are some of the tangible targets you can set for measuring the success or failure of the project. Some of the other measures of success are softer than the above measurements but may be more critical to your organization:
What impact can the implementation have on the management team?
Provide more information on the individual performance of the representative.
Allow the management team to concentrate on the problems instead of general broad brush management techniques.
Reduce turn over, this one may be the most important of any, the cost and lost productivity of turn over are always hard to measure but just in lost opportunity costs it is an important matrix. If you can reduce your turn over ratio it impacts customer retention, improved revenue, reduced cost and a whole host of other intangible items.
Increase the time a new representative takes to become productive in his territory.
You measure success in several ways, we have already discussed a couple of measurements one being increase in revenue but the other increase in productivity is more difficult. What actually makes up the increase in productivity number? Let’s look at some of the elements you can track to determine if you are measuring the productivity number successfully.
Increase in the actual number of accounts that a representative is managing. If under your current plan a representative is managing 400 accounts you would expect them to be able to manage an addition 40 accounts on average across your organization.
If your average weekly meetings across your organization are 2 per rep you would expect that to increase to 3 a week.
Your average close ratio is 4 per ten proposals you would expect that to increase to 4.4 per 10 proposals.
The above are some of the tangible targets you can set for measuring the success or failure of the project. Some of the other measures of success are softer than the above measurements but may be more critical to your organization:
What impact can the implementation have on the management team?
Provide more information on the individual performance of the representative.
Allow the management team to concentrate on the problems instead of general broad brush management techniques.
Reduce turn over, this one may be the most important of any, the cost and lost productivity of turn over are always hard to measure but just in lost opportunity costs it is an important matrix. If you can reduce your turn over ratio it impacts customer retention, improved revenue, reduced cost and a whole host of other intangible items.
Increase the time a new representative takes to become productive in his territory.