What is CRM Analytics?

Every business owner wants to be successful, to have trustworthy customer relations, and to provide a product or service that is going to be the number one choice on the market. It is a very understandable and reasonable goal, yet reaching it requires a lot of effort, preparation, planning, and, of course, analytics.

There is no chance of a mistake, especially for small businesses, when almost 90% of them will close before the next year. All business decisions count, and you have to make sure that it will help you build new customer relations and not break them.

But is it possible to know exactly what your consumers want? Or what their reaction would be to the change in the company's sales strategies? Can you calculate the average revenue of the entire company for years ahead? You might be surprised, but the answer is actually yes.

This is where CRM analytics comes in. Reporting tools that are pre-installed in any high-quality CRM software will help you use all the big data you have collected to make accurate predictions and prescriptive recommendations to make informed decisions.

What Is Customer Relationship Management (CRM) Software?

Customer relationship management software is a unified platform necessary to improve customer relationships and create a high-quality customer experience. CRM systems are needed to store all your data on the leads and existing clients, as well as establish communication channels with both customers and team members.

Such tools are mostly used by marketing, customer support, and sales teams. However, the more advanced CRM programs provide more advanced tools like website builders, templates to create a targeted marketing campaign to attract potential customers as well as customer data analytics.

CRM Platform Types

The set of features a CRM solution provides is based on its type. So, when deciding on what software to choose, look into its abilities and choose the one that suits your specific needs. There are 3 primary types:

If you want to have high customer satisfaction rates, everyone on your team has to be on the same page and have access to the same data as everyone else. And this is what collaborative CRM platforms are about.

It can be hard to establish communication between marketing teams an other departments, especially if your employees are spread all around the world and working remotely. A CRM tool will help you implement various channels to promote collaboration and share information.

It also provides access to one database, which can be accessed from any device. Your team can change or add information about the new customers and the adjustment will be instantly visible to everyone else in the company.

Operational CRM system allows you to have proper governance over the customer journey as well as automate repetitive tasks. Building a trustworthy and valuable customer relationship requires work throughout the entire sales cycle.

However, there are many daily tasks that are simple but still take too much time to complete. The numerous automation features of such CRM systems allow you to take this workload off the shoulders of your teams, allowing them to work on more vital and creative tasks without being stuck in the constant routine.

If you are not using all the consumer data properly, how can you expect great business results? Analytical CRM uses all the information you have collected to help you make efficient data-driven decisions to improve the sales process.

You can not only have 24/7 problem tracking that helps you identify the issue as soon as it occurs but also learn the needs and preferences of your customers and create additional purchases. So, let's dive into CRM Analytics.

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What is CRM Analytics?

CRM analytics, or customer analytics, is a combination of processes, tools, and metrics necessary to collect and analyze customer information based on the available data. Based on the received output, you can improve customer satisfaction and increase sales by making informative business decisions.

CRM analytics tools are useful for both small businesses and large corporations. On the one hand, it can help you find your target customers, which is useful at the beginning of your company's journey, and your sales team needs new external data to set up the processes.

On the other hand, if you are dealing with hundreds or even thousands of customers, you ease the process for your marketing teams, sales, and customer service CRM analytics system. It will not only be easier to track customer interactions but to have actionable insights into every customer persona.

Most Common CRM Metrics

With all the new features the CRM analytics tools are providing you with, it can be overwhelming, especially if you need help knowing where to start and what to track. Here are some of the most common CRM metrics to help you get the most out of your sales efforts.

Net Promoter Score (NPS)

If you want to measure customer satisfaction through our various touchpoints on your sales funnel, the net promoter score can be of help. It can be used to get actionable insights from customer support communication as well as information displayed on the page.

Pop-up questionnaires of simple follow-up emails are used to gather data for the metric. These usually look like this: "Rate the experience from 1 to 10 where 10 is the best and 1 is the worst.

These can also be created with the help of the CRM system. Some use graphics or emojis to induce customer action and reaction.

Customer Effort Score (CES)

When you are looking into CRM analytics, the CES and NPS metrics are better taken into consideration together to make more accurate conclusions and have a more holistic view.

The customer effort score is how hard it is for the customer to go through any touchpoint of the sales cycle. For example, was it easy to locate the product or service? Was there any trouble with contacting customer support?

The less effort the customer has to put into the action, the better. Simplified usability is the way to get have high satisfaction rates and more sales.

Customer Turnover

One of the main metrics that helps you measure business efficiency is customer turnover. It will show the flow of people based on the new customers throughout the period as well as the ones that left.

It might be unpleasant to see the customers leave. However, you have to be ready for that as a business owner. The metric can be calculated every month, quarter, or year based on the data you want to analyze. You might be tracking instant campaign results as well as their long-term effects with the help of CRM analytics.

Rate of Renewal

The rate of renewal metric is used in CRM analytics for businesses that provide subscription-based products and services. Whether you have an automatic renewal or require the customer's approval for every new payment, this metric will show how many users have stayed for another period.

You can track who has long-lasting subscriptions as well as what changes could influence staying with your company. Such data will help you create more personalized campaigns and drive up sales.

First Contact Resolution Rate (FCR)

This metric in CRM analytics is used to analyze the work of your customer support department. Every inquiry should be resolved accurately as well as in a timely manner.

The rate goes from 0% to 100%, with 100% as the ideal outcome. However, it is mostly unreachable based on potential errors and wrong customer contact. The goal is 70% to 90%, and if the rate is lower than 50%, the department will require immediate attention.

Retention Cost

Making your customers keep coming back is one of the most profitable outcomes of your business actions. There is no need to win their attention and loyalty again, and such clients tend to trust you and your opinion more.

This does not mean that creating a loyal customer does not require any additional effort after the sale. There is still a lot of work to do, and you must be curious about what it takes to make someone buy again.

The retention cost metric will show exactly how much of each resource it took, as it takes into consideration:

• The amount of retained customers - you have to track how many customers came back to calculate the efficiency;

• Period - decide on the period you want to calculate the metric for;

• Cost - make sure you have all expenses at hand, including man hours, new software, etc.

Expansion Revenue

Unfortunately, if your business is not growing, it will fail. This is why you have to constantly focus on attracting new clients and promising leads.

Surely, you can focus on customer retention, but the results might not be as good as you hope. This is why you also have to pitch more expensive products to existing customers. And the CRM analytics will be your helping hand.

The expansion revenue consists of 2 incomes. One is from the new customers that appeared as a result of a marketing campaign. The other part includes income from the existing customers' new purchases after the retention.

Pre-Sale Customer Data CRM Analytics

The relationship with your customer begins way before the actual sales process. There is so much to be done for your potential client to start even considering your product or service as a way to resolve the issue.

Many CRM systems will have numerous metrics that can provide you with actionable insights. Here's a list of the pre-sale CRM analytics you should look into.

Lead Management

Lead management is a crucial part of creating a successful customer journey. It includes the jobs of your sales reps, cold-calling managers, and an entire marketing team.

There are 2 main metrics in CRM analytics to focus on new leads and prospects. The first one calculates the success of the combined efforts of your lead generation, calling, and advertising strategies.

At the same time, the sales team has to locate the people within your target market so they can become your leads. This metric will not only help you establish your buyer persona but also develop the best strategy to attract customers.

Personal interactions

Modern customers are very selective about any new product. They are learning as much as they can about the item before even thinking of purchasing it and choosing the best option on the market.

This is why individual customers tend to contact the businesses themselves, which leads to numerous additional personal interactions. In CRM analytics, you can track the following:

• the number of inquiries, both emails and phone calls;

• the frequency of the interactions;

• the duration of every call.

With such customer data, you can not only discover the most common issues but develop the perfect answer strategy based on the most efficient interactions. Keep track of every communication that leads to immediate sales or sales-related actions.

Sales points engagemenеt

Your marketing strategy has various touch points where the customer can interact with your brand. These include all your social media profiles and the website. Any advertisement, whether it is a Google ad or an Instagram-sponsored story, will target the audience most likely to use one of the touchpoints.

A high-qualityCRM analytics tool will allow you to track the amount of website visitors, their activity on the page, and newsletter subscriptions. Some CRM platforms also allow us to connect the statistics data from various social media to make more accurate campaign results.

Additional engagement

There are other ways to attract customers and improve sales rates. They include offline and online lectures or special events, providing free trials and product samples to new customers, as well as other brands offering discounts on your production.

CRM analytics will help you calculate the effectiveness of each approach and the sales conversion rate for each one of them. This will help you implement the most profitable ways in your strategy.

Post-Sale CRM Analytics to Improve Customer Relationships

Most of the data for the CRM analytics can be collected only after the purchase is finalized. This is also the point at which you start working on customer retention and strengthening the relationship with every client. We have collected the most important data analytics a CRN software can provide you with.

Problem tracking

There are no flawless products and services. If you think that you have done your best and everything feels perfect, the fresh eye can easily spot the issue you were never ever considering before.

Continuous post-sale customer support and CRM analytics will help you identify the most common issue your clients are contacting you with. With prompt support and determination to listen to your customers, you will not only improve the product but show your interest in making the customer satisfied.

Additional purchases

You always have to think beyond just fixing the customer's issue. On many occasions, complementary products that the person does not know may be required.

With data from your CRM analytics, you can create a personal recommendation to better the experience. Locate the customer's preferred communication channel and provide some helpful advice.

Purchasing patterns

This metric can be useful in several ways. If you have a subscrription-based service, you can track what makes the average customer keep using the website. You will be not only able to adjust content with these data but also figure out the possibility of the customer maintaining the subscription.

On the other hand, with CRM analytics, you can create a retention marketing strategy based on similar purchases from other customer. This way, you can create a personalized campaign and recommend the products the person is more likely to be interested in according to the collected data.

Segmentation

CRM analytics will help you create customer personas based on individual preferences. You can learn if the person is going to buy from you again almost immediately after the purchase.

Your team will not be wasting time on hopeless cases where the person has no interest in using your product or service. They will be focused on targeting the right people, bringing more sales to your company.

Spending

It is one of the most fundamental metrics in CRM analytics, yet still one of the most important. A customer can make five purchases a month and bring only 10$ to your company. At the same time, others who make a single purchase will spend hundreds of dollars on the products.

The collected data will provide actionable insight into individual buyers as well as sum the results for the period. You can look into every customer impact and determine which ones require more attention.

Project management

Making data-driven decisions is the base of any management. CRM analytics will provide you with all the necessary data to keep developing your brand and increasing the number of sales.

Together with other features CRM software provides you, you can tremendously improve your workflow. At the same time, you can save money on numerous tools since everything can be accessed from one place.

Choosing the Best CRM Analytics Tool

There are plenty of CRM analytics tools to pick from on the market. However, we have prepared a top tree option for you to consider, and do not waste too much time on additional research.

Bitrix24

Bitrix24 is an all-in-one CRM software that has all the tools you might need to establish effective project management and improve your sales rate. It is a combination of all CRM types that allows you to have access to all the features such programs can provide.

With Bitrix 24, you can establish communication between your sales teams all around the world, create effective marketing campaigns with the help of pre-installed templates, and make data-driven decisions with the CRM analytics system. You can:

• use interactive graphs to get a better understanding of the metric;

• make ai powered predictions based on the collected customer data;

• improve lead generating with all the necessary metrics at your hand;

• track and fix all the problems across the customer journey;

• improve the efficiency of all your departments.

And the best news is that Bitrix24 is available completely for free. This is perfect for small businesses on a budget.

Salesforce

Salesforce CRM analytics provides a wide range of powerful metrics to help your business. It is a unified system that both collects and stores the information.

Salesforce data analytics tools also allow you to purchase only the specific metrics useful for your specific business model. You can choose the one necessary for your growth and do not overpay for the unused features.

Salesforce CRM also provides you with a 30-day free trial. So you can look into what the software has to offer and decide if this is the tool you were searching for.

Pipedrive

Pipedrive CRM analytics tools are very useful, especially if you are just starting your business. It will help you organize and classify all the data present in visual dashboards.

It also provides a prediction feature that can be used to manage your leads and improve your conversion rates. This CRM platform also allows you to manage the security of your data, helping to restate the folders if necessary.

If you are looking into software with integration, this can be software for you. There are several CRM analytic apps that provide more metrics.