Do you have a customer relationship management system that offers seemingly endless data reports and analytics?
While this information is excellent, CRM analytics aren’t helpful if you can’t understand what they mean.
Hi! I’m AJ, and I’ve used CRM platforms for several years. Knowing how to use CRM analytics to my advantage allowed me to sell my company for multiple seven figures.
I’ve compiled this guide to help our audience understand CRM analytics and how they can use this data to build customer relationships.
How can analytics improve your business results? Let’s take a look!
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CRM analytics are data that tell you how your business’s sales and customer service perform.
On top of that, this data collects and organizes customer information, allowing you to make smarter business decisions because data drive them.
I obtain the data from my CRM platform whenever I use CRM analytics. That way, I can automate data collection and report generation.
CRM analytics work by using customer data your CRM platform collects.
That said, some systems have a CRM analytics app that operates separately from other functions.
However, many CRM systems collect data through the following techniques:
Customer conversationsSocial media engagementEmail marketingWebsite surveysEmail collection methodsCustomer shopping patterns on their website
Regardless of where your data sources originate, collecting CRM analytics is essential because this data fuels future business decisions.
As I’ve mentioned, CRM analytics are integral to your CRM system.
Below I’ve listed the top six advantages of utilizing CRM analytics! Let’s check them out.
First, CRM analytics offer data insights into your customer service department’s performance.
Therefore, you can see customer satisfaction levels and how well your team handles customer inquiries and complaints.
With this data, you can improve customer relationships if there are weak points because CRM analytics provide actionable insights.
CRM analytics provide intelligent insights for your customer base.
Whether you use customer information for email marketing or social media, you can feel confident in your targeting.
Real-time data ensure you know everything you must know about your target audience.
Does your company have a high customer turnover rate? CRM analytics can improve repeat customers.
CRMs collect information from multiple data sources, ensuring you understand your potential and existing customers.
As a result, you offer personalized marketing and customer service messages, building brand loyalty and retention rates.
CRM analytics help you create meaningful customer acquisition strategies because you can use data to target prospects and customers who may be interested in your product or services.
AI-powered predictions segment potential customers into groups more likely to need or want your company’s offerings.
Reporting capabilities are a vital aspect of a successful CRM platform.
With CRM analytics, your company can access detailed reports with suggestions for future decisions.
Additionally, better CRM reporting ensures you immediately identify weak spots in your sales process, marketing campaign, etc.
Finally, CRM analytics offer better data management.
When you have numerous sources of customer information, data integration helps to bring all the knowledge into a single source.
As a result, you can review and analyze trends quickly while ensuring your team can access the most up-to-date customer information.
There are several ways to utilize CRM analytics to your company’s advantage. From sales to customer service, detailed data can improve every aspect of your company!
Ensuring your sales reps have accurate information is essential. That way, your team understands its customer base and creates personalized selling experiences.
Sales pipeline conversion rates indicate the percentage of potential and existing buyers that made it through the entire sales process.
Essentially, this data indicates how well your team converts prospects into paying customers!
The prospect to lead to sale metric indicates how many prospects your team recruits to make one sale.
Analyzing this data is excellent because you can understand which selling techniques are working and which need improvement.
CRM analytics can also provide sales forecasting information.
Sales forecasting utilizes internal and external data to predict future sales patterns for your company.
As a result, you can alter your sales and marketing techniques when circumstances change.
Marketing data provides insight into behavioral patterns and effective targeting techniques.
Let’s see how CRM analytics can assist your marketing team!
An MQL (Marketing Qualified Lead) is a lead who has shown interest in your company’s products or services based on your marketing campaigns.
These leads are helpful because they indicate which marketing campaigns attract different customer segments.
An MQL lead is usually more likely to purchase your company’s products or services.
CRM analytics show how much you spend on recruiting and advertising to acquire one customer.
You want this cost to be as low as possible. And if the cost to acquire a customer is higher than their average revenue, analytical CRM offers suggestions to change that!
Finally, analyzing the cost-to-money earned ratio informs you how much your company generates from each marketing campaign.
So, if a campaign produces little to no revenue, it’s essential to consider alternative methods that generate more sales.
These actionable insights ensure you aren’t pumping money into an ineffective marketing technique!
Lastly, analytics provide deeper insights into your customer service department’s effectiveness.
An efficient customer service team builds brand loyalty and encourages customers to repurchase things!
CRM analytics track the number of customer complaints your company receives.
Reviewing these complaints to improve customer service and shopping experience is essential.
Do several customers complain about the same thing? Use these complaints to adjust your business’s operations.
Utilize your CRM system to analyze customer interactions.
These interactions provide a lot of valuable insights, including the following:
Effective interaction methodsGroups of customers who interact with your companyHow many times a customer interacts with a sales representative
The customer churn rate is the percentage of customers who stop using your company’s products or services.
Analyzing this data lets you identify why people leave your business and how your team can adjust its operations.
You must track numerous common CRM metrics to understand your customer base, sales pipeline, and marketing techniques.
Here are the pre-sale analytics your company should track!
The first stage your sales reps take is identifying and contacting prospects (consumers who might be interested in your company).
Track the emails and calls throughout this phase to determine the effective techniques and weak points.
Collecting and tracking all your data sources about leads helps you determine conversion rates.
Additionally, the number of new leads indicates how well each sales team member performs.
How many leads convert to customers?
The prospect-to-lead ratio helps you understand the effectiveness of your sales team and marketing tactics.
Sales forecasting estimates future revenue by predicting the number of products or services your company will sell.
CRMs offer valuable business intelligence, presenting accurate sales forecasting based on the market, previous sales, and other factors.
How successful is your sales cycle? The sales conversion rate reveals how many prospects purchase something from your company.
Additionally, the number of conversions showcases how well your sales representatives perform and identify customer needs.
Your company’s sales cycle is the repetitive tasks your sales team follows to convert leads into customers.
A sales cycle ensures you always know what your team’s next move should be and where each lead is within the process.
Many people confuse sales pipelines with cycles.
However, a sales pipeline is a visual way of tracking potential buyers as they move through the sales process.
Sales pipelines are often displayed as a horizontal bar or a funnel.
Lastly, you can use CRM analytics to set achievable (yet ambitious) sales goals.
The important metrics CRMs present can help you see areas where your sales team must improve.
Therefore, you challenge your sales manager and representatives without forcing unrealistic goals.
CRM workflows help your company convert leads into customers. Still, it’s vital to collect data after your team makes sales.
Ensure your company records the problems your customers note about your products or services.
Correcting recurring mistakes is essential to keep your customer base happy.
An effective sales strategy is pushing additional products or services to customers who’ve already bought something.
Track these additional purchases so you know what products you should suggest in the future!
Utilize CRM analytics to track your customers’ purchasing patterns.
For instance, do they subscribe to any services your company offers? Do they regularly buy the same product?
When you bring data like this to your marketing team, they can retain these customers via discounts, promotions, etc.
Use CRM analytics to divide your customers into groups that are most and least likely to continue buying your products and services.
Creating segments makes it easier to create marketing campaigns in the future.
Each customer spends a different amount.
Determining each customer’s impact on your company’s revenue is important, ensuring you allocate the correct resources to each relationship.
Did you know you can use your CRM to identify key activities in your sales process?
By doing so, your team can target current customers for future purchases, increasing retention rates.
When you enable CRM analytics to generate reports, it’s easy to see how much you spent to acquire a customer.
Utilize this data to ensure you aren’t overspending.
Lastly, your CRM helps you measure customer churn rate.
The churn rate shows the percentage of customers who stopped using your products or services.
Analyzing this data helps you identify why people leave your business and adjust operations to reduce attrition rates.
Below I’ve compiled four simple steps to track CRM analytics. Although this may seem challenging, the correct information ensures you and your team track data efficiently.
The first step is finding the best CRM software. Each company is different depending on its industry, size, and needs.
Some popular CRM systems include the following:
Salesforce CRM analyticsHubSpotMonday
Next, you must decide which metrics your business tracks.
CRMs are powerful tools and capable of tracking various types of information.
Track metrics your company currently struggles with so your CRM can quickly pinpoint and correct the weak spot.
Step three is setting up your dashboard. CRM analytics dashboards present essential information in a condensed format.
That way, you and your team immediately see the most important CRM analytics.
Lastly, you must hold weekly meetings with your team to analyze your data.
Regularly reviewing your CRM analytics ensures your CRM workflow functions properly and nothing is slipping through the cracks.
There are numerous things to look for in a CRM analytics tool, including the following aspects:
PriceEase of useCompatibility with your CRMTrackable metricsMobile capabilities
Use your existing CRM analytics tool if possible because it’s easier to implement and teach employees how to use it.
Here are four of my favorite CRM software providers with analytics! These are perfect if you’re unsure where to start.
HubSpot is an excellent CRM for growing businesses on a tight budget because there is a free version of the program.
HubSpot allows you to track several CRM analytics, including sales activity, productivity, etc.
Also, artificial intelligence features are available!
Monday’s sales CRM is easy to use, affordable, and advanced.
That said, some of the CRM analytics Monday tracks and organizes include the following:
Lead management and capturingMarketing activitiesCustomer relationsContact managementTeam tasks
Freshsales is ideal for sales teams because it streamlines identifying leads and accelerating follow-ups.
The numerous insights ensure your sales representatives always have access to information that increases revenue.
Pipeline’s CRM analytics help you and your team find and close more deals faster.
Also, Pipeline offers a free demo and trial period to test whether the technology matches your business needs!
CRM analytics formerly were not used by many small businesses.
However, the rise in CRM has proven how analytics increase efficiency, streamline the sales process, and organize data.
What CRM analytics tool does your company use? Let us know in the comment section!
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