7 CRM Metrics: Best Ways to Track Items for Better Selling

A CRM is an essential tool for small businesses and companies to keep track of their potential customers and critical data. It is not only a management tool, but it also plays a massive role in the success of a business. CRM helps companies keep an eye on their overall sales, customer data, customer service, recruitment process, marketing, etc. It lets businesses manage every bit of information in one place and effectively at the same time.

The customer relationship management tool helps businesses with building strategies and goals. But, before building strategies, it is a must to know everything about CRM metrics.

Today, we will cover everything you need to know about CRM metrics. In this guide, we will discuss everything about CRM metrics, from top CRM metrics to how to ensure that your metrics are accurate?

Read this guide till the end to learn everything about CRM Metrics.

What are CRM Metrics?

The primary objective of a CRM tool is to automatically track sales data and let sales and marketing teams get control over it. The work doesn’t end here. Here comes the role of CRM metrics.

A perfect CRM tool automatically also helps you calculate the metrics based on the data you have in your CRM tool. It shows the data in an easy-to-understandable way, such as graphs, tables, pie charts, etc. Employees use these data to determine metrics according to their goals.

Some of the most common CRM metrics are close rate, customer retention rate, churn rate, net promoter score, etc.

Firms use these CRM metrics to create effective strategies and goals. This helps businesses to create achievable and realistic goals.

There are 7 Most Common CRM Metrics:

  1. Close Rate or Conversion Ratio
  2. Customer Retention Rate
  3. Net Promoter Score
  4. Quota Attainment
  5. Customer Effort Score
  6. Expansion Revenue
  7. Rate of Renewal

This is all about what CRM metrics are. Check the next section to know the top CRM metrics and how to calculate them?

What are Top Customer Relationship Metrics & How to Calculate?

There are eight types of CRM metrics. We will discuss all these eight CRM Metrics in this section. In addition, we will also learn to calculate them. Start reading them below.

1. Close Rate

The primary job of a sales team is to get as many leads as they can and convert them into paying customers. But, not all leads don’t convert into paid customers. They get access to thousands of leads, but only hundreds or a few more of them convert. Here comes the close rate.

Close rate means the percentage of a total number of leads converted into actual paying customers. Usually, the sales and marketing team measures the close rate to know the difference between the forecasted and actual results.

CRM Metrics Close Rate

Image Credit: Salesforce.com

How to Calculate Close Rate?

The basic formula for calculating the close rate is:

(# of conversions / # of prospects) x 100

To calculate the close rate, simply divide the total number of conversions by the total prospects, and multiply it by 100.

Let’s understand this with an illustration. For instance, you run an email marketing campaign. The goal of your email marketing campaign is to get more sales for your business.

In this case, the total emails sent are the prospects. On the other hand, the sales you get from your emails are conversions.

Total Email Sent: 500

Conversions or Sales: 50

(# of conversions / # of prospects) x 100: 500/50*100=10%

2. Customer Retention Rate (CRR)

We all have heard about terms like short-term customers and long-term customers. It’s necessary for a business to retain its customers for a long time to be profitable. Here comes the use of customer retention rate.

Customer retention rate refers to converting your first-time customers into repeating customers and preventing them from going to your competitors. Customer Retention is the next step after customer acquisition.

CRR states how good a business is at keeping its customers interested in its products or services.

Customer retention rate helps businesses understand whether existing customers are happy with their products or not. According to a report by Harvard Business Review, acquiring a new customer can cost 5-25% more than handling an existing customer.

The client-facing teams usually calculate the customer retention rates. These are the companies that individually deal with big clients.

CRM Metrics Customer Retention Rate (CRR)

Image Credit: Salesforce.com

How to Calculate Customer Retention Rate?

The formula to calculate Customer Retention Rate is:

Customer Retention Rate = [(# of returning customers – # of new customers) / # of total customers within a time period)] x 100

To calculate the CRR, subtract the new customers from the returning customers, then divide it by the total customers within a time period. To get it in percentage, multiply it by 100.

3. Churn Rate

Every business loses and gains customers with time. For a business, it is essential to calculate the churn rate.

The churn rate helps businesses understand the percentage of users who aren’t interested in their products or services anymore. It gives companies a reason to figure out why a few customers aren’t interested in their products anymore.

Churn rate is one of the most important CRM metrics for SaaS and subscription-based companies. Every business loses customers, but having a high churn rate is critical for companies and can drastically impact their growth.

The high churn rate could be due to poor customer satisfaction and ineffective marketing initiatives and strategies.

CRM Metrics  Churn Rate

Image Credit: Salesforce.com

How to Calculate Churn Rate?

The formula to calculate churn rate is mentioned below:

Churn Rate = (# of customers lost / # of customers within a time period) x 100

To calculate the churn rate, divide the customer lost by the total number of customers you had within a time period. Then, multiply it by 100 to get the figure of 100.

4. Net Promoter Score (NPS)

How often do your customers recommend your product or services to their friends, family, neighbors, etc.? You don’t know. Right? The net promoter score helps you find that. Referrals help businesses a lot in getting more sales.

NPS refers to determining the percentage of customers willing to recommend your products to someone else. Sales representatives usually use this to collect positive and negative feedback from the customers. NPS categorizes respondents as promoters, passives, and detractors.

CRM Metrics Net Promoter Score (NPS)

Image Credit: Salesforce.com

How to Calculate Net Promoter Score?

The formula for calculating NPS is:

Net Promoter Score = % of promoters – % of detractors

To calculate the NPS, subtract the percentage of detractors from the percentage of promoters, and you will get the NPS.

5. Quota Attainment Rate

Quota attainment measures how close individual sales representatives are to achieving a defined target. This helps in identifying the weak points and plus points of sales representatives. Based on the quota attainment rate, the team manager can easily track and analyze the performance of their sales reps.

Having inconsistent numbers can be a huge deal for a business. This could be due to a lack of proper training, regular feedback, lack of communication, etc.

CRM Metrics Quota Attainment Rate

Image Credit: Salesforce.com

How to Calculate Quota Attainment Rate?

The formula to calculate quota attainment is:

(# of total sales/target number) x 100

To get the Quota Attainment, divide the total sales by the target number. To get the figure in percentage, multiply it by 100.

6. Customer Effort Score (CES)

Offering quality customer support is a must for every business. A business must resolve each problem of its customers as soon as they complain about it.

Customer effort score measures the amount of effort a customer had to put to resolve an issue, a request, a product returned, or a question answered. This ultimately states how much a business cares about its customers.

7. Rate Of Renewal

The customer rate of renewal is also known as the renewal rate or customer retention rate. It simply means the cost a business incurs to retain its existing customers for the long term. It is one of the most critical indicators that justifies business growth.

8. Expansion Revenue

Expansion revenue means the additional revenue a business gets from a customer besides a base revenue during a particular period. Upselling and cross-selling the products and services come under expansion revenue. For instance, upgrading a customer’s subscription plan to the next tier as their needs grow can be called expansion revenue.

These are the top 8 CRM metrics you should know to build an effective business strategy and clear and achievable goals for your business.

What is the CES Survey?

CES is also known as Customer Effort Score Survey. Customer Effort Score is a customer satisfaction survey that agents use to measure the overall experience of a customer with an organization. The CES Survey helps businesses understand whether the user’s experience with their services was good or not. If not, then why is it?

Read the next section to know how to track sales metrics in a CRM?

How to Track Sales Metrics in a CRM?

Tracking your sales metrics in a CRM is relatively easy. It becomes a lot easier when you know everything about CRM metrics. We have discussed the essential CRM metrics to consider while analyzing your business growth and creating goals.

In this section, we will check how to track sales in a customer relationship management tool.

#1. Choose the Metrics & Data You Want to Track

The first step is to decide which metrics and data you want to track. You can start with the common CRM Metrics, like close rate, customer retention rate, and others. Choosing the metrics also depends on your goal.

If you are still confused about what metrics you should start with. Then, here are a few suggestions for you:

  • You can choose metrics based on your short-term and long-term goals.
  • You can ask different departments or teams what metrics and data they will require to perform their tasks more efficiently and effectively.
  • Find metrics from your previous reports that helped your business grow.

Once you choose the metrics, you will need to find the related data in your CRM tool.

For instance, you want to calculate the close rate, so you might want all the data related to sales like total leads, closed leads, etc. Head over to your CRM and get this data. Then, you can easily calculate the close rate or conversion rate with the help of the formula.

#2. Create A Report In Your CRM

The next step is to create a report in your CRM after choosing the data. You will need to find the data you have selected in your CRM dashboard. Open your CRM, and start creating a report.

Then, search for the selected data with the help of filters. Filters will help you find the data faster. After this, your CRM will place all the selected data in a visual and most-understanding form. It will make sure that everything is easily understandable to you and your employees.

#3. Add Report to Your Dashboard

Suppose you have chosen different metrics for various teams, like sales, marketing, HR, etc. Then, you might want to create a different dashboard for each team to access their reports. CRM tools let you easily create different dashboards to access the reports.

CRM tools offer pre-made templates to create a dashboard in a few clicks. You can use those to create a dashboard and add reports to them.

This is how to track sales metrics in a CRM. Continue reading ahead to know more about CRM metrics.

How to Monitor Customer Relationships?

There are some critical KPIs that help you monitor your customer relationships. In this section, we will mention those critical KPIs to monitor customer relationships. Check these metrics to track customer relationships.

  • Close Rate: Close rate is also known as Conversion Rate. It states the percentage of customers converted from the total customers.
  • Upsell Rate: Upsell rate refers to the number of customers who upgrade their package or subscription by paying an additional amount.
  • Sales Cycle Duration: Sales cycle duration means how long a salesperson takes to close a deal.
  • Customer Acquisition Cost: It is a cost that a company bears to acquire clients.
  • Net Promoter Score: This score states the percentage of customers who are willing to recommend your product or service to others
  • Abandon Rate: Abandon rate refers to the percentage of customers who abandoned your brand or stopped showing interest in your services.

These are some customer relationship management KPIs. Continue reading to learn how to improve CRM performance.

How to Improve Your CRM Performance?

Here are a few tips to improve your CRM performance.

Tip 1. Specify Who Your Target Audience Is.

Tip 2. Sync Details Of All Your Employees & Calendars with CRM.

Tip 3. Personalize your CRM According to Your Needs and Goals.

Tip 4. Update Your CRM When Needed.

Tip 5. Provide Proper Training to Your Team for Efficient Use.

Tip 6. Automate Your Data for Better Output.

Tip 7. Create Key Performance Indicators.

Tip 8. Make It Easy to Use for your Employees.

Read the next section to check the best CRM strategies and tactics.

3 Best CRM Strategies and Tactics You Need to Know

Here are the best CRM strategies you need to know In 2022.

1. Do Complete Audit

The first strategy is to run a complete audit. Start reviewing everything from scratch, whether it is internal or external. You can start analyzing your target market, your competitors, strengths, weaknesses, opportunities, and threats.

2. Define Your Goals

We all use CRM tools for a reason. Before using the CRM, it is important to define our CRM goals and objectives properly.

You should always ask yourself these questions.

  • Why do you want to use CRM?
  • What do you want to achieve with the help of CRM?

While setting up the goals, make sure that they are realistic and achievable at the same time. Once you are done with it, start personalizing the CRM according to your goals. This way, you can make the most out of your CRM.

3. Use Data to Improve Productivity

The primary purpose of CRM is to gather all data in one place and make it available to you. You can use CRM to improve your productivity and team’s productivity. Here’s how. You can use CRM to take data from different departments and use it when required. You don’t need to spend hours manually collecting the data of different departments.

These are the three best CRM strategies and tactics to use CRM at its best.

How to Run the Right CRM Reports to Measure Success?

How do you measure success with the help of CRM Reports? Which reports do you consider to measure the success with the help of CRM? We usually get these questions in our minds while thinking of measuring success. Here are some of the reports you should check to measure success.

Sales Forecast Report: The first report you should check is the sales forecast report. A sales forecast report predicts the sales a salesperson can do in a particular time, like a week, monthly, quarterly, and yearly.

Sales Conversion Report: Another report you should definitely check is the sales conversion report. This report states how effective your team was during a particular period to convert the leads into paying customers.

Sales Performance Report: Sales performance report states the numbers of sales done in a time period.

Lost Deals Report: Lost deals report shows the number of deals that your sales team hasn’t been able to close over the last period.

These are a few KPIs you should see to measure the success of your business. Continue reading the next section to know how to ensure your metrics are accurate.

How to Ensure Your Metrics Are Accurate?

According to a report by BrightTalk, marketing companies lose around 550 hours and approximately $32,000 from one sales representative from using bad data. Bad data cost companies a lot, in terms of money as well as time. It is essential to have good quality data on which sales reps’ can rely without any hiccups.

Before calculating the metrics, it is important to make sure that the data is totally accurate and reliable. Otherwise, bad leads may result in bad conversions, and nobody wants that. So, how can we ensure that metrics are accurate?

To be accurate about metrics, we need to make sure that customer information is completely accurate and non-redundant. It means 100% unique data with zero duplicacy. We need to make sure that only selected people have access to the data. This will ensure that users aren’t using or changing your data for other purposes.


This is everything you all need to know about CRM metrics. In this guide, we covered everything about CRM metrics. We learned about different CRM metrics and how to calculate them. Besides, we also checked how you can improve customer relationships. So, this is all about CRM Metrics.

We hope you liked this guide on CRM Metrics. Stay tuned for more such guides.

About Author

Lito James is the founder of Massivepeak.com. He is an entrepreneur and marketing specialist who helps businesses to get more leads, subscribers and customers. Massive Peak has been featured on Thriveglobal, Cloudways, sujanpatel, surveysparrow, renderforest and many more. Follow on LinkedIn

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