SCHOOL OF ECONOMICS

CRM EFFECTIVENESS : CRM METRICS - FINANCIAL AND

NON FINANCIAL MEASURES
SUBMITTED TO : BY :Dr. AKANSHA SINGHI
MAHAJAN
PAWAR
AHIRWAR

SUBMITTED
SMRITI GUPTA
NARENDRA
NAMRATA
BHUPENDRA

TABLE OF CONTENT

CRM EFFECTIVENESS
PERFORMANCE MEASUREMENT
BALANCED SCORE CARD
GENERIC VERSION
CRM VERSION

CRM EFFECTIVENESS
The quality of customer relationship management
(CRM) is usually evaluated by outcome indicators
such as customer loyalty and business
performance. To maintain or improve these
indicators, CRM managers should regularly
evaluate the progress of CRM practices.

CRM EFFECTIVENESS
CRM has a high level of importance in being
continually effective at meeting customer needs,
starting with customer-focused information
technology (CFIT).
CFIT allows businesses access to all of the
customer information they have in various reports.
The idea is that if a good CFIT system is in place,
sales and customer service will have access to all
of the necessary information to best meet their
clients needs.

CRM EFFECTIVENESS
The second major component of effective CRM
is through relationship marketing.
Relationship marketing is a crucial part in
maintaining customers and maximizing
profitability and customer satisfaction.
Relationship marketing makes the customer
feel like they can turn to you for whatever they
need inside your capabilities. Once a solid
relationship has been developed, it is
important to maintain that through customerspecific relationship marketing. This will keep
your customers happy and keep them coming
back to your business.

CRM EFFECTIVENESS
The third component identified in this article was
having a customer-focused organizational climate.
This component is a very internal aspect of CRM.
Your organization should be built entirely around
meeting the customers needs and valuing good
customer service. This can be difficult to attain if
your business has been around for a while and has
not kept good customer-focused practices.

PERFORMANCE
MEASUREMENT
Performance Measurement within CRM can be
defined as a process of assessing the achievement
of pre-determined objectives of an organization
through the measurement of indicators .
The measurement is not only based on financial
but also on non financials : customer satisfaction,
employee satisfaction, number of new customer
acquired or employee fluctuation

PERFORMANCE
MEASUREMENT
There are several concepts of Performance
Measurement Systems (PMS) included within CRM
Du-Pont-Ratio-System: The Du-Pont-Ratio
system is a system within which the Return on
Investment (RoI) can be used as target criteria. It
measures how efficiently the company uses its
capital to generate profit. However, the Du-PontRatio-System suffers as its figures represent a
past perspective. It confirms what has occurred to
the organization but may not explain what is
currently happening, or be a good indicator of
future performance. As a result, it only measures
past performance

PERFORMANCE
MEASUREMENT
Performance Pyramid: The idea is to transfer
management objectives into all organizational
units to obtain relevant controlling information
through financial and non-financial indicators
Balanced Scorecard : The Balanced Scorecard is
a method for measuring a company's activities in
terms of its vision and strategies. It gives a
comprehensive view of the performance of a
business . Hence, it also measures future
performance and uses leading indicators.

BALANCED SCORE CARD

BSC is a possible management tool for measuring
the financial performance Of companies within the
context of Customer
Relationship Management (CRM).
There are two types of Balanced score card: Generic Version
CRM Version

GENERIC VERSION

GENERIC VERSION

It consists of financial and non financials perspectives

The financial perspective It considers how an
organization appears to its shareholders and measures the
financial performance: ROI, ROCE, shareholder value or cash
flow. The financial performance of an organization is
fundamental to its success and survival.
The customer perspective It focuses on how the
customer sees the organization and measures which have a
direct impact on customers: time taken to process a phone
call, results of customer surveys or number of complaints.
The internal perspective It measures the performance of
key internal business processes: order lead and delivery
time, inquiry duration and cost, average response time for
complaints, call center service level or number of units that
required rework.
The innovation and learning perspective It focuses on
how an organization can improve, create value and
measures the company learning curve: number of employee
suggestions or total hours spent on staff training.

CRM VERSION

CRM VERSION
Effect-relationships are represented by
arrows. At this point, it is important to
mention that each company and
consequently each scorecard are
unique and non generic.
Key Performance Indicators (KPIs)
In the following part an illustration will
be made of exemplary KPIs/ratios in
conjunction with corresponding
objectives for each element of the
above introduced CRM Scorecard.

CRM VERSION

CRM VERSION

CRM VERSION

CRM VERSION

THANK YOU