20 CRM KPIs & Metrics to Track and Measure to Increase Sales Success

Customer relationship management (CRM) is a crucial business development process that can help you improve customer relationships, boost customer service, encourage customer retention, and drive sales growth.

Many marketers and salespeople combine practices, strategies, and technologies to manage and analyze customer interactions and data through the customer lifecycle. Although customer relationship management is super effective for business, you must ensure that your sales process, pipeline, and workforce work correctly to achieve your desired results.

How do you ensure your team is on track with your business goals? How do you ensure your CRM goals are running smoothly? First, you must set and track the right KPIs correctly. This blog will explore the top 20 CRM KPIs to track to increase sales success.

Table of Content

• What is Customer Relationship Management?
• What are Customer Relationship Management KPIs?
• CRM Metrics vs. CRM KPIs: What’s the Difference?
• Why Do You Need To Set CRM KPIs?
• How Do CRM KPI Dashboards Work?
• Who Uses CRM KPI Dashboards?
• What Should You Include in a CRM KPI Dashboard?
• Top 10 CRM KPIs for Sales Executives to Analyze
• 10 CRM KPI Metrics for Sales Managers to Track
• How to Create a CRM KPI Dashboard?
• How Do You Measure CRM Effectiveness?
• 5 CRM Software With the Best CRM Dashbaord

What is Customer Relationship Management (CRM)?

Customer Relationship Management (CRM) is a strategy, process, or system businesses use to manage customer interactions. It involves collecting and analyzing customer data to develop stronger customer relationships and improve customer satisfaction, loyalty, and retention.

Most CRM system typically includes a database that stores customer data such as contact information, purchase history, and customer preferences. The system can track customer interactions such as phone calls, emails, and customer service requests. It can help businesses identify opportunities for upselling, cross-selling, and customer loyalty programs.

A CRM system aims to improve customer experience by providing better customer service, personalized communication, and targeted marketing. By understanding customer needs and preferences, businesses can tailor their products and services to meet customer demands and improve customer satisfaction.

CRM is a crucial component of modern business strategy, as it allows businesses to stay competitive in a crowded marketplace by developing deeper, more meaningful relationships with their customers.

What are Customer Relationship Management KPIs?

Customer Relationship Management (CRM) KPIs are specific metrics used to measure the success of a company’s CRM strategy and operations. These KPIs provide insights into the effectiveness of customer interactions and the overall customer experience.

Common CRM KPIs include customer acquisition cost (CAC), customer retention rate, customer lifetime value (CLV), customer satisfaction score (CSAT), and net promoter score (NPS). These KPIs help businesses understand the impact of their CRM efforts on customer acquisition, retention, and satisfaction, allowing them to make data-driven decisions to improve their CRM strategy and overall customer experience.

CRM Metrics vs. CRM KPIs: What’s the Difference?

CRM Metrics and CRM KPIs are two related concepts but have different meanings. CRM metrics are numerical values that describe specific aspects of customer relationships and can be used to monitor and analyze business performance. In contrast, CRM KPIs are specific metrics used to measure the success of a company’s CRM strategy and operations, providing insights into the effectiveness of customer interactions and the overall customer experience.

While CRM metrics provide valuable customer interactions and behavior data, they may not align with business goals and objectives. For example, a metric like “number of customer complaints” may help identify areas for improvement in customer service. Still, it doesn’t necessarily measure the success of the company’s overall CRM strategy.

CRM KPIs, on the other hand, are directly tied to business goals and objectives and are used to measure the success of the company’s CRM strategy in achieving those goals. For example, a KPI like “customer acquisition cost (CAC)” directly measures the cost of acquiring new customers, a key business goal for many companies.

Overall, while both CRM metrics and CRM KPIs are essential for measuring and analyzing customer relationships, KPIs are specifically designed to align with business objectives and provide a clearer picture of the success of a company’s CRM strategy.

Why Do You Need To Set CRM KPIs?

Setting Customer Relationship Management (CRM) KPIs is essential for several reasons:

1. Measure success

KPIs help you measure the success of your CRM strategy and operations by providing quantifiable targets to achieve. Without KPIs, it can be challenging to determine whether your CRM efforts are effective.

2. Align with business goals

Setting KPIs allows you to align your CRM strategy with broader business objectives, such as increasing revenue, improving customer satisfaction, or reducing costs.

3. Identify areas for improvement

KPIs can help you identify areas for improvement in your CRM operations. By tracking KPIs over time, you can identify trends and areas that need attention, allowing you to make data-driven decisions to improve your CRM strategy.

4. Monitor progress

KPIs can help the sales team to monitor progress toward achieving your CRM goals. Regularly tracking KPIs can help you identify when you’re falling behind on targets, allowing you to make adjustments to stay on track.

5. Accountability

KPIs hold teams and individuals accountable for their performance. By setting KPIs for specific teams or individuals, you can incentivize them to focus on achieving specific CRM goals, leading to better overall results.

How Do CRM KPI Dashboards Work?

CRM KPI dashboards are a powerful tool that allows businesses to track and monitor key performance indicators (KPIs) related to their customer relationship management (CRM) strategy and operations.

A CRM KPI dashboard typically presents data visually in graphs, charts, and tables, making it easier for users to analyze and interpret the data quickly. The dashboard may include KPIs such as customer acquisition cost (CAC), customer retention rate, customer lifetime value (CLV), customer satisfaction score (CSAT), and net promoter score (NPS), among others.

The data for the CRM KPI dashboard is usually pulled from multiple sources, such as CRM software, marketing automation platforms, and customer feedback tools. In addition, the dashboard may also include data from external sources, such as industry benchmarks or competitor data.

The dashboard can be customized to meet the business’s specific needs, allowing users to focus on the KPIs most relevant to their goals and objectives. Users can also set up alerts to notify them when certain KPIs fall below or exceed a specified threshold.

Overall, CRM KPI dashboards provide businesses with a comprehensive view of their CRM performance, allowing them to make data-driven decisions to improve customer acquisition, retention, and satisfaction, which can ultimately lead to increased Revenue and profitability.

Who Uses CRM KPI Dashboards?

CRM KPI dashboards can be used by various stakeholders in a business, providing each with the data they need to make informed decisions and drive improvements in CRM performance. These stakeholders include the following:

1. Sales teams

Sales teams can use CRM KPI dashboards to track their progress toward sales targets, such as lead conversion rates, average deal size, and sales pipeline metrics.

2. Marketing teams

Marketing teams can use CRM KPI dashboards to monitor the success of their campaigns, including metrics such as customer acquisition cost, conversion rates, and average customer lifetime value.

3. Customer service teams

Customer service teams can use CRM KPI dashboards to track customer satisfaction metrics, such as Net Promoter Score (NPS) and Customer Effort Score (CES), and identify improvement areas in customer service operations.

4. Senior management

Senior management can use CRM KPI dashboards to get a high-level overview of the company’s CRM performance, including metrics such as revenue growth, customer retention rates, and overall customer satisfaction.

5. Business analysts

Business analysts can use CRM KPI dashboards to conduct deep-dive data analysis, identifying trends and patterns that can inform strategic decision-making.

What Should You Include in a CRM KPI Dashboard?

A CRM (customer relationship management) KPI (key performance indicator) dashboard is a tool that helps organizations monitor and evaluate their performance in managing customer relationships.

The dashboard should provide a snapshot of the most critical metrics and KPIs that drive business success. Here are some key elements that should be included in a CRM KPI dashboard:

1. Customer acquisition metrics could include the number of leads generated, conversion rates, and customer acquisition costs.

2. Customer retention metrics could include the number of active customers, churn rate, and customer lifetime value.

3. Sales metrics could include the number of sales, average deal size, and sales cycle length.

4. Marketing metrics could include the number of marketing campaigns, conversion rates, and ROI.

5. Customer service metrics are used bythe customer service team for measuring customer satisfaction scores, response times, and resolution rates.

6. Pipeline metrics: This could include the number of deals in the pipeline, the value of the pipeline, and the win rate.

7. Revenue metrics could include total Revenue, Revenue per customer, and revenue growth rate.

8. Team performance metrics: This could include individual and team performance metrics, such as the number of calls made, deals closed, and response times.

By including these essential elements, a CRM KPI dashboard can help organizations track their progress and identify areas for improvement in their customer relationship management strategies.

Top 10 CRM KPIs for Sales Executives to Analyze

As a sales executive, it’s important to focus on the metrics that directly impact Revenue and customer acquisition. Here are the top 10 CRM KPIs for sales reps to analyze:

1. Sales Revenue

Sales revenue is a key performance indicator (KPI) that measures the total amount of Revenue generated by the sales team over a specific period of time. It is a crucial business metric as it directly impacts the bottom line.

The formula for calculating sales revenue is simple:

Sales Revenue = Multiply the total number of units sold by the price per unit.

Alternatively, you can calculate sales revenue by multiplying the total number of deals closed by the average deal size.

2. Sales Growth Rate

The sales growth rate is a key performance indicator (KPI) that measures the percentage increase or decrease in sales revenue over a specific period of time. It is a crucial metric for assessing the effectiveness of a company’s sales strategy.

The formula for calculating the sales growth rate is:

Sales Growth Rate = (Current period sales revenue – previous period sales revenue) / previous period sales revenue, multiplied by 100.

A positive sales growth rate indicates that a company is increasing sales revenue, while a negative growth rate shows a decline in sales revenue.

3. Average Deal Size

Average deal size is a key performance indicator (KPI) that measures the average value of deals closed by the sales team within a specific period of time. It is an essential metric for understanding the sales team’s performance and revenue potential.

The formula for calculating average deal size is:

Average Deal Size = Total sales revenue / total number of deals closed.

This KPI can help sales teams identify high-value opportunities and adjust their sales strategies to focus on deals with a higher average deal size.

4. Sales Cycle Length

Sales cycle length is a key performance indicator (KPI) that measures the amount of time it takes for a lead to become a paying customer. It is an essential metric for assessing the effectiveness of a company’s sales process and identifying areas for improvement.

The formula for calculating sales cycle length is:

Sales Cycle Length = The total number of days from the first contact with a lead to the date of closing the deal.

This KPI can help sales teams identify bottlenecks in the sales process and optimize their strategies to reduce sales cycle length and increase Revenue.

5. Sales Pipeline Value

Sales pipeline value is a key performance indicator (KPI) that measures the total value of all open opportunities in the sales pipeline. It is an essential metric for assessing the potential Revenue that the sales team may generate in the near future.

The formula for calculating sales pipeline value is:

Sales Pipeline Value = The sum of the value of all open opportunities in the pipeline.

This KPI can help sales teams prioritize their efforts on high-value opportunities and identify areas where the pipeline needs to be filled to ensure consistent revenue growth.

6. Conversion Rate

Conversion rate is a key performance indicator (KPI) that measures the percentage of leads that convert into paying customers. It is an essential metric for evaluating the effectiveness of a company’s sales and marketing efforts.

The formula for calculating the conversion rate is:

Conversion Rate = the total number of customers divided by the total number of leads, multiplied by 100.

A higher conversion rate indicates that the sales team is successfully closing a higher percentage of leads, while a lower conversion rate may indicate the need for improvements in the sales process or lead qualification.

7. Lead Response Time

Lead response time is a key performance indicator (KPI) that measures the amount of time it takes for the sales team to respond to a lead. It is an essential metric for evaluating the effectiveness of a company’s sales process and customer experience.

The formula for calculating lead response time is:

Lead Response Time = The time elapsed between a lead’s initial contact with the company and the sales team’s first response.

A shorter lead response time is associated with higher conversion rates and customer satisfaction.

8. Win Rate

Win rate is a key performance indicator (KPI) that measures the percentage of deals the sales team successfully closes out of the total number of opportunities. It is an essential metric for evaluating the effectiveness of a company’s sales process and the sales team’s ability to convert opportunities into closed deals.

The formula for calculating the win rate is:

Win Rate = The total number of deals won divided by the total number of opportunities, multiplied by 100.

A higher win rate indicates a more effective sales process and greater revenue generation.

9. Customer Acquisition Cost (CAC)

Customer acquisition cost (CAC) is a key performance indicator (KPI) that measures the cost of acquiring a new customer. It is an essential metric for evaluating the efficiency of a company’s sales and marketing efforts.

The formula for calculating CAC is:

Customer acquisition cost (CAC) = The total sales and marketing expenses incurred in a specific period divided by the total number of new customers acquired in that period.

A lower CAC indicates a more efficient sales and marketing strategy and a higher potential for profitability.

10. Customer Lifetime Value (CLV)

Customer lifetime value (CLV) is a key performance indicator (KPI) that measures the total value a customer is expected to generate for a company over their entire lifetime as a customer. It is an essential metric for evaluating the long-term profitability of a company’s customer base.

The formula for calculating CLV is

Customer lifetime value (CLV) = The average annual revenue per customer multiplied by the expected number of years that the customer will remain a customer.

A higher CLV indicates a more valuable customer base and greater potential for long-term revenue growth.

By analyzing these CRM KPIs, sales executives can gain insights into their team’s performance, identify areas for improvement, and make data-driven decisions to drive revenue growth.

10 CRM KPI Metrics for Sales Managers to Track

Sales managers not only enhance the sales process for the sales team, but more importantly, they also work to ensure individual sales reps maximize their full potential, boost their skills to close more deals, and hit the set sales goals.

To effectively carry out these sales team managerial tasks, sales managers must track the following KPI metrics to inform them about the progress of different stages within the sales process as well as the individual progress of the team.

11. Pipeline Stage Conversion Rate

Pipeline stage conversion rate is a key performance indicator (KPI) that measures the percentage of opportunities that move from one stage of the sales pipeline to the next. It is an essential metric for evaluating the efficiency of a company’s sales process and identifying bottlenecks or areas for improvement.

The formula for calculating the pipeline stage conversion rate is:

Pipeline stage conversion rate = The total number of opportunities that move to the next stage divided by the total number of opportunities in the previous stage, multiplied by 100.

A higher pipeline stage conversion rate indicates a more efficient and effective sales process.

12. Average Time to Advance

Average time to advance is a key performance indicator (KPI) that measures the average amount of time it takes for opportunities to progress from one stage of the sales pipeline to the next. It is an essential metric for evaluating a company’s sales process’s efficiency and identifying improvement areas.

The formula for calculating the average time to advance is:

Average time to advance = The total time spent in a particular stage divided by the number of opportunities that advance to the next stage.

A shorter average time to advance indicates a more efficient sales process.

13. Pipeline Stage Conversion Rate per Rep

Pipeline stage conversion rate per rep is a key performance indicator (KPI) that measures the percentage of opportunities that move from one stage of the sales pipeline to the next for each sales representative. It is an essential metric for evaluating individual sales performance and identifying areas for improvement.

The formula for calculating the pipeline stage conversion rate per rep is:

Pipeline stage conversion rate per rep = The total number of opportunities that move to the next stage for each sales representative, divided by the total number of opportunities in the previous stage for that representative, multiplied by 100.

A higher pipeline stage conversion rate per rep indicates more effective sales performance.

14. Total Opportunities Created

Total opportunities created is a key performance indicator (KPI) that measures the total number of opportunities generated by the sales team within a specific period of time. It is an essential metric for evaluating the effectiveness of lead generation efforts.

The formula for calculating the total opportunities created is:

Total opportunities created = the total number of new opportunities generated within a specific period of time.

A higher number of opportunities created indicates a more effective lead generation strategy, which can lead to increased Revenue and growth for the company.

15. Total lost opportunities

Total lost opportunities is a key performance indicator (KPI) that measures the total number of opportunities lost by the sales team within a specific period. It is an essential metric for evaluating the sales team’s effectiveness in closing deals and identifying areas for improvement in the sales process.

The formula for calculating total lost opportunities is

Total lost opportunities = The total number of opportunities that were marked as lost within a specific period of time.

A lower number of lost opportunities indicates a more effective sales process.

16. Referral Rate

The referral rate is a key performance indicator (KPI) that measures the percentage of new customers referred to a business by existing customers within a specific period. It is an essential metric for evaluating the effectiveness of customer satisfaction and loyalty.

The formula for calculating the referral rate is:

Referral rate = the total number of new customers acquired through referrals divided by the total number of new customers acquired within a specific period of time, multiplied by 100.

A higher referral rate indicates higher customer satisfaction and loyalty, which can lead to increased Revenue through repeat business and positive word-of-mouth advertising.

17. Total Emails, Calls, and SMS

Total emails, calls, and SMS is a key performance indicator (KPI) that measures the total number of outreach activities, such as emails, calls, and text messages, made by the sales team within a specific period of time. It is an essential metric for evaluating the sales team’s productivity and outreach efforts.

The formula for calculating total emails, calls, and SMS is as follows:

Total emails, calls, and SMS = the total number of outreach activities made by the sales team within a specific period of time.

A higher number of outreach activities indicates a more active and engaged sales team.

18. Average Purchase Value

Average purchase value is a key performance indicator (KPI) that measures the average value of a customer’s purchase within a specific period of time. It is an essential metric for evaluating the effectiveness of the sales team’s efforts in increasing customer spending and identifying areas for improvement in the sales process.

The formula for calculating average purchase value is:

Average purchase value = the total Revenue generated from all purchases within a specific period of time, divided by the total number of purchases made within that time period.

A higher average purchase value indicates higher customer spending and greater Revenue for the company.

19. Calls, Emails, and SMS per Rep

Calls, emails, and SMS per rep is a key performance indicator (KPI) that measures the total number of outreach activities, such as calls, emails, and text messages, made by individual sales representatives within a specific period of time. It is an essential metric for evaluating individual sales representatives’ productivity and engagement level.

The formula for calculating calls, emails, and SMS per rep is as follows:

Calls, emails, and SMS per rep = the total number of outreach activities made by an individual sales representative within a specific period of time.

A higher number of outreach activities per rep indicates a more productive and engaged sales representative.

20. Email and SMS Response Rate

Email and SMS response rate is a key performance indicator (KPI) that measures the percentage of responses received to outreach activities such as emails and text messages within a specific period of time. It is an essential metric for evaluating the effectiveness of communication efforts and the interest of potential customers.

The formula for calculating email and SMS response rates is as follows:

Email and SMS response rate = the total number of responses received to outreach activities within a specific period of time, divided by the total number of outreach activities sent, multiplied by 100.

A higher response rate indicates higher engagement and interest from potential customers.

How to Create a CRM KPI Dashboard?

Creating a CRM KPI dashboard can help you track your progress toward your sales goals and keep your team aligned and motivated. Here are the steps to create a CRM KPI dashboard:

1. Determine the goals and objectives

Before creating a CRM KPI dashboard, you must determine your goals and objectives. This will help you identify the most relevant KPIs for your business and sales team. For example, your goal may be to increase sales revenue by a certain percentage or to improve the win rate of your sales team.

2. Identify the relevant KPIs

Once you have identified your goals, you need to identify the relevant KPIs to help you track your progress toward those goals. For example, if your goal is to increase sales revenue, you may want to track metrics such as sales growth rate, average deal size, and sales pipeline value.

3. Choose the right dashboard tool

There are many dashboard tools available that can help you create a CRM KPI dashboard. You can use a spreadsheet program such as Excel or Google Sheets or a specialized dashboard tool such as Tableau or Microsoft Power BI.

4. Collect and organize data

Once you have chosen your dashboard tool, you need to collect and organize the data you will track. This may involve pulling data from your CRM system or other sources such as Google Analytics or social media platforms.

5. Design the dashboard

Once you have collected and organized your data, you can start designing your dashboard. You should choose a clear and concise layout that displays your KPIs in an easy-to-read format. You may want to use graphs, charts, or other visualizations to make the data more accessible.

6. Set up automated reporting

To ensure that your dashboard stays up-to-date, you should set up automated reporting. This will allow you to receive regular updates on your KPIs without having to update the dashboard manually.

7. Monitor and analyze results

Once your CRM KPI dashboard is up and running, you should monitor and analyze the results regularly. This will allow you to identify trends and areas for improvement and adjust your sales strategy accordingly.

How Do You Measure CRM Effectiveness?

Measuring the effectiveness of a CRM system is essential to understand if it is meeting the business objectives and helping in achieving sales targets. Here are some key ways to measure the effectiveness of a CRM system:

1. User Adoption

The most fundamental measure of CRM effectiveness is user adoption. If the users are not using the CRM system effectively, it does not serve its purpose. The usage rate of the system by the sales team, customer service team, and other teams should be tracked to understand the effectiveness of the CRM.

2. Customer Acquisition and Retention

One of the primary reasons for implementing a CRM system is to acquire and retain customers. By tracking customer acquisition and retention rates, it is possible to measure the effectiveness of the CRM system. This can be done by monitoring metrics such as the number of new customers, the rate of customer churn, and customer lifetime value (CLV).

3. Sales Metrics

Sales metrics are essential to measure the effectiveness of a CRM system. These metrics include sales pipeline value, conversion rates, average deal size, and sales growth rate. By tracking these metrics, it is possible to understand how the CRM system is helping the sales team to achieve their targets.

4. Customer Satisfaction

Customer satisfaction is a critical metric to measure the effectiveness of a CRM system. This can be done by conducting surveys, monitoring social media, and tracking customer feedback. By analyzing customer feedback, it is possible to identify areas where the CRM system can be improved to enhance customer satisfaction.

5. Cost of Acquisition

The cost of acquisition is another critical metric to measure the effectiveness of a CRM system. This metric includes the cost of acquiring new customers, the cost of retaining customers, and the cost of maintaining the CRM system. By tracking these costs, it is possible to understand the ROI of the CRM system and identify areas for improvement.

6. Time to Close

The time taken to close a deal is another critical metric to measure the effectiveness of a CRM system. This can include the time to move a lead through the sales funnel and the time to close a deal. By tracking this metric, it is possible to understand the sales team’s efficiency and the CRM system’s effectiveness in supporting the sales process.

7. Marketing Metrics

Marketing metrics are also essential to measure the effectiveness of a CRM system. These metrics can include lead generation, conversion rates, and the cost of marketing campaigns. By tracking these metrics, it is possible to understand how the CRM system supports the marketing team in generating leads and converting them into customers.

5 CRM Software With the Best CRM Dashboard

There are many CRM software options available in the market that offer effective CRM dashboards. Here are five popular CRM software options with the best CRM dashboards:

1. Salesforce

Salesforce is a cloud-based CRM software that offers one of the best CRM dashboards. It provides a customizable dashboard that allows users to access real-time data and reports. The dashboard also includes features such as sales forecasting, pipeline management, and social media analytics.

2. HubSpot CRM

HubSpot CRM is a free, cloud-based CRM software that provides an easy-to-use dashboard with drag-and-drop functionality. The dashboard includes lead generation, pipeline management, and contact management. Users can also create custom reports and charts to track their performance.

3. Zoho CRM

Zoho CRM is a cloud-based CRM software that offers a highly customizable dashboard. The dashboard includes lead generation, pipeline management, and sales forecasting features. Users can also create custom reports and charts to track their performance.

4. Pipedrive

Pipedrive is a cloud-based CRM software with a visual dashboard displaying pipeline management, sales forecasting, and deal tracking. The dashboard is customizable and easy to use, with drag-and-drop functionality.

5. Insightly

Insightly is a cloud-based CRM software that offers a customizable dashboard with lead generation, pipeline management, and contact management features. The dashboard also includes real-time reporting and analytics, allowing users to track their real-time performance.

Monitor Your Customer Relationship Management (CRM) KPIs Better Today

Measuring and analyzing CRM KPIs is essential for any business to improve its sales performance and customer relationships. By tracking the right KPIs, such as sales revenue, conversion rate, customer acquisition cost, and customer lifetime value, sales executives and managers can make informed decisions that can positively impact the bottom line.

Creating a well-designed CRM KPI dashboard can help visualize these metrics and make tracking progress toward business goals easier. Therefore, choosing the right CRM software that provides effective dashboard and analytics capabilities is essential.

By utilizing CRM KPIs, businesses can optimize their sales processes, improve customer satisfaction, and ultimately drive growth and success.