Page 272 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 11: CRM Measurements

By treating brand value as an asset, investments in brand building can be measured and more Notes
easily compared with other corporate investments, the value of the brand and the performance
of the investments can be tracked and the performance of specific brand activities can be
monitored. Measuring brand value can get complex. Boston Consulting Group’s Brand Value
Creation (BVC) approach looks at dozens of variables concerning different aspects of a brand
and various competing brands and determining how significant each variable is to the brand’s
value (Bixter, et al., 1999). This approach uses cross correlation analysis, cluster and factor analysis
and linear regression to build the brand value model. The authors state that this approach helps
companies understand what consumers value most and how well brands deliver it.

Complexity also lies within each brand equity component Aaker describes. Brand awareness
has been discussed in depth over the past 40 years yielding plenty of measures such as brand
awareness (unaided and aided), brand recall, purchase intention, brand preference and willingness
to pay. In addition, brand equity components have relationships between each other. For example,
high brand awareness can positively affect perceived quality (Hoyer & Brown, 1990). Brand
equity as a measurement framework can also encompass traditional and easier to determine
measures such as market share, sales volume, the number of customer inquiries, customer and
customer retention, among others. Many managers eschew the more formal and rigorous brand
equity measures in favour of measures that are more easily derived (Macdonald & Sharp, 1996).

Davenport and Beck (2001) suggest a different way to think about company or brand awareness.
Their technique, called the Attention Scape, helps managers understand what kind of attention
they are getting from customers (or employees, suppliers, etc). Data is collected through survey
techniques and plotted along three scales:
1. Front of mind/back of mind attention
2. Voluntary/captive attention

3. Attractive/aversion attention
Competitors can be plotted along these axis and companies can develop strategies to reposition
themselves relative to their competitors’ attention profile.

11.3.1 CRM Metrics to Measure

Many of our customers have asked for a sample list of CRM metrics to track. Metrics are internal
and external indications of accomplishment. They are used to justify, monitor, and track CRM
success. They serve as the feedback mechanism for the continuous development of your CRM
strategies and tactics. Some organizations tie compensation for employees to metrics tracked
and monitored in salesforce.com using real-time performance dashboards and reporting.
Here is list of common CRM metrics to monitor and track your CRM success:

Sales Metrics

 Number of prospects
 Number of new customers

 Number of retained customers
 Number of open opportunities
 Close rate
 Renewal rate

 Number of sales calls
 Number of sales call per opportunity

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