Question
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Expert knowledge for digital decisions
Which Key Metrics Should Be Evaluated from the CRM?
Short answer
Four are sufficient to start: number of new opportunities per month, conversion rate, average duration until closure, and average order value. From these four, almost everything else can be derived. More metrics usually mean less attention for each individual one.
The Four Basic Metrics
| Metric | What It Answers |
|---|---|
| New Opportunities per Month | Are enough coming in at the top? |
| Conversion Rate | How well do we convert? |
| Duration until Closure | How long does a deal tie up capacity? |
| Average Value | Is the effort worth it per deal? |
If you multiply the first three sensibly, you get capacity planning: How many opportunities do we need to achieve a revenue target?
Useful Additions Later
- Reasons for Losses, grouped. The most valuable analysis overall – it indicates what the issues are.
- Source of Inquiries. Which channel brings business, not just contacts.
- Response Time to Inquiries. Strongly correlates with the conversion rate.
What Can Be Saved
Metrics that do not lead to action. "Number of contacts in the database" looks good but changes nothing.
The Test: If this number were halved – what would you do? If there is no answer to that, you don’t need the number.
Prerequisite
All metrics assume well-maintained data. A conversion rate from a system where sales only enters half of the opportunities is worse than having no number – because people believe it.
Key facts
- Four Basic Metrics
- New Opportunities, Conversion Rate, Duration, Value
- Most Valuable Addition
- Reasons for Losses
- Test for Each Metric
- What would I do if it were halved?