Check out our independent editorial review of the best crm software for sales professionals, including use cases for each option.
CRM metrics are key data that sellers track using CRM software. They’re key to sales success because they help sales professionals assess how well they’re doing in their efforts while giving them clarity to make better decisions. In this article, we’ll be sharing the top five CRM metrics important to monitoring a company’s overall growth and success, along with a step-by-step guide on how to set up and track your chosen metrics in your CRM software.
CRM software automatically tracks sales data as well as lets salespeople manually log their own data and interactions. These pieces of information can then be used to create and automatically track key sales metrics at the individual, team, and company level. These chosen CRM metrics serve as the foundation for more detailed CRM reporting, which forms the basis for CRM dashboards offering a snapshot of all your important metrics and reports in one view.
Common CRM metrics include things like conversion or close rate, retention rate, churn rate, net promotor score, and more. For example, net promotor score lets customers rate your service out of 10. You could track that metric and include it as part of a monthly customer service report showing the growth rate of customer satisfaction over time. Then, add it to a central CRM dashboard to stay up-to-date on how it’s moving in real-time.
CRM software is capable of tracking hundreds of metrics, but it’s unrealistic for a sales team to focus on them all. Instead, it’s best to track a few key CRM metrics that offer a detailed look at a company’s ability to grow revenue and provide a positive customer experience, along with a sales team’s effectiveness at hitting its projected goals. Let’s take a look at the ones that will best help you do that:
There are five CRM metrics we believe all sales teams should incorporate into their CRM dashboards and reports. We selected these metrics because while every business has its own objectives and interpretations of success, they’re often built around the pillars of sales growth, customer satisfaction, and internal performance — all of which these metrics touch upon. They’ll also serve as a foundation on which other relevant CRM metrics can be added.
Here are the top five CRM metrics to track:
The data presented in our screenshots have been created for the sole purpose of showcasing CRM reporting. Therefore, it may be imperfect or otherwise unlikely in a real-world scenario.
Who Should Track This Metric: Sales and marketing teams that want to measure the percentage of leads that convert into customers.
Close rate measures the percentage of prospects that converted into to a customer. This is an important metric for salespeople to track and see how they are individually performing, but also good for sales managers to track overall performace. It is also an important metric for marketers to ensure the leads they’re generating are high quality.
The basic formula for conversion rate is:
Close Rate = (# of conversions / # of prospects) x 100
This formula can also be adapted to any marketing channel. For instance, when tracking a conversion rate for an email campaign, the “prospects” in this case would be the total number of emails sent. Meanwhile, figuring out the conversion rate for a landing page would involve dividing total conversions by the number of site visitors.
There is no universal standard when it comes to determining an ideal conversion rate, as average conversion rates vary among industries and marketing channels.
Who Should Track This Metric: Client-facing teams that want quantifiable evidence of customer loyalty.
Customer retention rate measures how effective a business is at keeping customers. It highlights the likelihood of someone returning to buy additional goods or services. Following this metric can benefit a business’s bottom line since acquiring a new customer costs 5–10 times more than maintaining an existing one. Client-facing teams like sales or support should track customer retention rate to understand how invested customers are in a business.
The basic formula for customer retention rate is:
Customer Retention Rate = [(# of returning customers – # of new customers) / # of total customers within a time period)] x 100
Before calculating customer retention rate, have a time period in place (weekly, monthly, quarterly, or yearly). Subtracting the total customer retention rate from 100 will reveal the percentage of customers lost, or churn rate. However, it’s important for businesses to track churn rate independently because it complements the customer retention rate by providing insight into when and why a business is losing customers, as we’ll explain in the next section.
Who Should Track This Metric: Sales teams that want a clearer understanding of why overall growth is stagnating.
Churn rate measures the number of customers that no longer buy from a business. Customer churn is inevitable for any business, but high churn can negatively impact a business’s profit margin and overall growth. Plus, high churn can inspire businesses to investigate other potential issues like poor customer satisfaction and ineffective marketing initiatives. Regularly tracking churn rate will aid sales teams in identifying and fixing related trends before it’s too late.
The basic formula for churn rate is:
Churn Rate = (# of customers lost / # of customers within a time period) x 100
Like customer retention rate, a specific time frame should be in place when calculating churn rate. While calculating churn rate alone won’t shed a light on the reason for customer attrition, it can motivate businesses to take a look at its net promoter score for possible indicators of dissatisfaction. We’ll take a look at how to calculate net promoter score in the next section.
Who Should Track This Metric: Reps who want to leverage positive and negative customer feedback to increase sales.
Net promoter score (NPS) measures a customer’s willingness to recommend a product or service. This data is collected via an online survey that’s administered after a purchase or query. NPS classifies respondents as promoters, passives, and detractors. Sales reps can use NPS data to identify promoters and leverage their loyalty to increase cross-sales, and to find potential churns (passives and detractors) so they can reach out and salvage the relationship.
The basic formula for NPS is:
NPS = % of promoters – % of detractors
NPS data is generated from the results of a net promoter survey. There are several ways to approach this, but the main theme is to ask a straightforward question and receive a customer rating in return.
Survey respondents are categorized as follows:
NPS is a global benchmark. So, while ideal scores will vary among industries, the global average NPS is +32.
Who Should Track This Metric: Sales managers who want to evaluate team performance and tailor expectations.
Quota attainment measures how close individual sales reps are at hitting a defined target or goal. It pinpoints a sales team’s top performers and weak links. However, if this number is consistently low, it may indicate unrealistic expectations or a lack of proper training. Quota attainment should be tracked by sales managers to provide meaningful feedback during one-on-one sessions, identify necessary team structure changes, and generate tenable revenue forecasts.
The basic formula for quota attainment is:
Quota Attainment = (# of total sales / target number) x 100
Quota attainment can be measured monthly, quarterly, or yearly. Generally speaking, if 80% of a sales team is hitting their targets most of the time, that’s indicative of a realistic quota. Anything less may signal unrealistic expectations, inexperienced staff, and/or an organizational problem.
Now that you have your foundational metrics in place, it’s time to add them to your CRM software so you can turn that data into a report you can share on your dashboard. This process of adding CRM metrics will vary among CRM platforms, but to give you a general overview of how it’s done, we’ve provided a step-by-step breakdown using HubSpot CRM — our top-rated CRM for sales professionals — as an example.
Here’s a brief overview of the steps, with additional details below:
Start by going to your CRM’s reports list page. In HubSpot CRM, there are two options: Report Library and Create Custom Report. HubSpot CRM offers over 140 pre-made report templates, many of which can be customized. However, in this example, we’ll show you how to create a report from scratch to track churn rate.
Choose the properties based on the CRM metric you want to track. In this example, we’re going to select Close Date and Unsubscribe Date — two properties related to churn. You can filter each property further by date or other values to get the most precise data possible.
Select the primary metrics to be displayed. HubSpot CRM measures by the count of contacts as a default and can’t be changed. However, we are able to change the chart type, frequency, and color scheme here.
Once your report is generated, you can save it right to your dashboard, where it can be accessed and monitored by other members of your team or organization. HubSpot CRM, like many other CRM software, offers customizable dashboards in their Professional and Enterprise plans of all their hubs (e.g., Sales Hub, Marketing Hub). Here, we put our churn rate report right next to our new subscriptions report to highlight the contrast between the two metrics.
Now that you know the most important CRM metrics to track and how to track them, check out our article on CRM reporting. This guide will show you how to leverage metrics to create actionable CRM reports.
CRM metrics play a key role in developing a viable sales strategy, identifying positive and negative customer trends, and gauging the overall health of a business. Knowing which metrics to measure, and how to track them in a CRM software, is only the beginning. Eventually, sales teams can harness those metrics to generate CRM sales reports to add to CRM dashboards so they can always be aware of what’s happening and be equipped to make better decisions.