Business Analysis Toolkit

CRM metrics basically pertains to a systematic approach in creating relationships with customers in order to provide and obtain satisfaction, loyalty, and higher revenue. However, there are some speculations that describe these measures as an attempt to cover up for selling excess products, which the customers do not really need. So, in order to be successful in it, businesses must consider certain measures in order to be successful in its implementation.

Among the ways of measuring its success includes four types of metrics: input metrics, process metrics, output metrics, and outcome metrics. Input metrics measure the accuracy, quality, and degree at which certain data is certifiable. Process metrics refer to performance depending on behavior and activity. Output metrics refer to orders, samples, proposals, and customer-related materials counted as part of the business, while outcome metrics refers to the financial matters. By tracking and maintaining these measures, the management is assured that their employees are doing their part to ensure customer satisfaction.

An example of following its measures towards the success of a business is shown by the users of a certain computer company. The computer company created and collected surveys from an online survey tool used in disseminating surveys, wherein the results are analyzed by the company’s management. Through the survey, the company could understand the issues related to dealers and users, as well as behavioral problems with specific representatives.

To further discuss the measures to its success, the first metrics strategy would be input metrics. Among the four metrics, it is described as the most forward-looking or futuristic because it uses quantitative and qualitative measures when applied. Some of the activities included in input metrics are the letters sent, attendees at seminars, brochures sent, and customer profiles created. When these activities are done, the company could expect to generate new business from its existing customers. Often, managers of companies are not measured on the inputs they generated but rather on its quality. The significance of input metrics understands the right behavior needed by focusing on obtaining profitable and important customers.

Another measure is the process metric wherein emphasis is on increasing sales and customer loyalty, as well as better customer satisfaction. A proper way to maintain this measure is to guard the employees on sales. For instance, between an excellent salesperson and an average salesperson, it is better to observe and compare their differences instead of focusing on one party alone. The results of these differences are the factors involved in process metrics.

A simple definition of output is the result of something done which can be counted. In business, output is referred to as a result that has a value for both the customers and organization. Output metrics are mainly composed of won proposals, referrals, and customer problems solved. Certainly, this output can be measured such as proposals on sales. It is relevant, among the four, because it describes the status of the company and its products in relation to its impact on its customers.

Lastly, outcome metrics, on the other hand, are those products and accomplishments that are hard to quantify and measure, and are considered to be more vital than output. For instance, having long-term relationships with a lucrative customer is an important outcome instead of just relying on mails or surveys for marketing campaigns. If a company is able to maintain lucrative customers, it could ensure stability, generation of a new business, and increased revenue.

By following the standards of CRM metrics, companies or businesses would be able to produce quality products, faster service, and reliable employees necessary in attaining and guaranteeing customer satisfaction.

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