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Develop a KPI Strategy

Developing a KPI Strategy: Measuring you Organization’s Success

Knowing the data you’re already collecting and defining your business goals is the first step in developing a KPI strategy for your organization. (Finding the data that’s missing is where ZBrains can help.) However, today we’re going to share the types of KPI’s you should consider when creating a KPI strategy for your organization. Finally, make sure not to miss the end of the article.  We share an infographic of KPI’s you could consider for each department or area of business.

A majority of today’s businesses use multiple systems to capture data about their customers, leads or website visitors, financials, projects, and more.

Many of these companies aren’t fully utilizing the information they can access. Usually, it’s too difficult, time consuming, and cost prohibitive to do reporting on regular intervals, much less on-demand. Does this sound a little too familiar? 

While making data-driven decisions probably isn’t new to you, you can take it to a whole new level with Zoho CRM and its many integrations when you develop KPI’s for each of your organization’s departments. Using your financial and organizational metrics to define strategic KPI’s will result in useful reports and gained visibility to your organization.  

Where should you start your KPI Strategy plan?

When you have a well-rounded knowledge of the different types and functions of key performance indicators you are able to collect and using the correct data needed to analyze your business. As a result, you’ll get a stronger strategy.

And for you Zoho users who already know about Zoho’s end-to-end solution, we hope this refresher can help you find even more opportunities to capitalize on the data you collect for increased successes.

Firstly, let’s start by defining the most common types of KPI’s. Then we’ll share a big list of Key Performance Indicators by organizational departments for you to consider as you are developing a KPI strategy.

What are the types of KPI’s you can use in your strategy?

Quantitative: This is among the most common types of KPI because it relies on data measurement. Generally speaking this is measurable by numbers such as total count, averages, or addition.

Qualitative: This KPI is more subjective, or based on opinions rather than hard numbers. An example could be the results from a customer or employee satisfaction survey. While you may use a numerical rating, the number is based on the individual’s opinion or experience.

Input: The money or resources that you invest to generate results in your organization are considered “input.” Measurable KPI’s of Input include dollars spent on training your staff, research and development, and materials. 

Output: Output KPI’s are calculated from both the financial and non-financial outcomes of your business tasks. For example, outcomes such as revenue are financial and number of new customers acquired in a specific time frame is non-financial. Zoho Books or your Quickbooks integration provides this data.

Leading: Keeping future performance in sight means employing Leading KPI’s because they are the business activities that are commonly predictive of future success or failure. An example is Daily Website Traffic, Leads Generated, New Projects Signed, etc. Leading measures can indicate success in other metrics and initiatives. (For example, a marketing project to improve SEO on site could positively impact website traffic and leads generated.) 

Lagging: Lagging measures show the success or failure of a business event that has already passed. Firstly, this data is helpful in determining if the event should be repeated. Next, you can determine how to revise it for future iterations when working on new strategies and business planning.

Directional: This KPI shows whether your trends are heading in the right direction. Are your directional KPI’s indicative that you need to make improvements, or are you maintaining or exceeding goals? For field services and technology companies this includes measurements like Service Level Agreement Compliance and On-Time Delivery.

More Key Performance Indicator Types for Strategy!

This set of KPI types are slightly more in depth. Challenge your business leaders, department managers, and other decision-makers. Ask them to consider how their area of business can use this type of KPI for deeper, performance improving insight.

Process: This KPI is an efficiency measure and keeping an eye on KPI’s for process help you answer the question, “Is my XYZ process efficient, or can we improve?” The data provided in this KPI informs process changes helping your organization increase efficiencies. Ticketing systems like Zoho Desk can provide many process KPI’s like new tickets created or resolution time. 

Outcome: Outcome KPI’s quantify the performance of a business task. You define a goal or target for your budget and “outcome” is the result. (For example customer retention improvements.) Look at churn rate or customer lifetime value KPI’s for types of Outcome. 

Practical: Practical KPI’s are the results of your business’ most personalized or unique metrics. These are based on your organization’s processes and the impact of those processes on the business and can be hard to track. In other words, maybe you already know what these are, but have difficulty capturing and reporting on them. This is where the ZBrains Difference comes into play! 

Actionable: Whenever you are performing organizational changes, it’s essential to determine if your teams are dedicated to the change, and if it is effective for your business. An actionable key performance indicator distills the project or program metrics.  It shows you where to take the action that ensures that business change efforts remain on track.

Financial: Finally, at the heart of your business are financial metrics. Pairing your financial KPI’s with other metrics allows you to craft a data story for your business. Net profit, Gross Profit Margin, and other familiar KPI’s tell you if your business is healthy, viable, growing, or unstable.

Build KPI Strategy for Your Business

Looking at your business and its goals, next select the KPI’s for each department. Next, select which are necessary to determine whether or not initiatives and teams are on track. In conclusion, this isn’t a comprehensive list, but we hope that the KPI’s by department shared here will be helpful.

As always, if you’re developing a KPI strategy and taking the next steps to gain business insights and efficiencies with improved KPI tracking with Zoho’s suite of solutions, contact us any time.

KPIs by Organizational Departments

KPIs for sales pipeline

With your KPI’s in place and tracking correctly in the Zoho ecosystem, you can create dashboards for areas or departments of your business, like the Sales dashboard seen here. Likewise, you can create executive summary dashboards. The permissions in Zoho allow you, as ever, to display data to only the relevant audiences.

Does this interest you? Then take a look at KPI’s by department to get started with your strategy.



Develop a KPI Strategy

CRM implementation tips

Elevate Your Business with These 10 Proven CRM Implementation Tips

Regardless of your business focus, implementing a CRM correctly is essential to its adoption and success for your organization, and this is why CRM implementation tips are so important. It can seem tempting to ease your way into a new CRM by simply turning it on.  But we know from the experience of our clients that this can become quickly overwhelming and a point of abandon.

Working with a product like Zoho, which advertises itself as DIY, we see this kind of thing happen a lot.

For this reason, we’re offering 10 CRM Implementation Tips for you to consider as you begin planning or implementing any customer relationship management software. Let’s get started!

1) Your CRM Should Support Your Sales Cycle 

If you’ve already started your project, or are starting your research here, this CRM Implementation Quick Start Tip to examine your sales cycle to determine what you really need is crucial.

Getting honest about your business needs and goals is a really important consideration.

CRM Implementation Tip #1Your CRM should support your sales cycle.

Out of the box, CRMs usually contain lots of functionality. You’ll have the ability to enter companies and contacts into your system, as well as convert them from leads to active customers, record notes about them, associate emails and sales orders with them…and likely, countless other bells and whistles you might not have known about.

Maybe your business doesn’t require all that functionality. If you run an insurance agency, for example, your needs may be perfectly satisfied with just half of those rudimentary features. Perhaps you may be able to do away with (or hide) several of the default modules inside your CRM entirely! You’re not losing functionality, in fact, these decisions to keep CRM aligned with your business can foster user adoption.

Get our top “CRM Questions to Ask About Your Sales Cycle.

 

2) Don’t Underestimate Data Migration Time

As you’re working through all the considerations for CRM Implementation – and it can be a bit of a process – be sure to give a healthy amount of time to how you’ll migrate existing data to your CRM. 

CRM Data MigrationDon’t underestimate data migration time!

Whether you’re already using a different CRM or a spreadsheet to keep track of all your data currently, this is a task that must be completed for a successful implementation.

When planning your project, or reviewing plans from your consultant, be sure to allow extra time for data migration – don’t underestimate it!

Find out more about what to consider during CRM data migration.

 

3) Keep Your Staff in the Loop

Keep your staff in the loop As you plan a CRM implementation, it’s important to know exactly how you’ll be using the modules inside your CRM. Who knows your business systems better than the folks who use them every day? Your expertise and their experience is a recipe for success. 

Keep your staff in the loop.

This one’s very important. Obviously, you don’t want your staff to come in one day to a system they haven’t a clue how to use.  

Get more info on keeping your team ahead of the curve and productive during deployment.

 

4) Transition in Phases

Big business changes, especially changes in everyday systems like a new CRM implementation, can be turbulent times. This CRM implementation tip describes how to disturb your business the very least during CRM implementation time. This one is really simple.

Transition CRM in stagesTransition in phases, not all at once.

It bears repeating – yes, again – that even a successful CRM implementation doesn’t happen all at once. With so many facets of your  system designed specifically for your business, you’ll need time to test everything out and make sure it’s working as it should.  

What if you can’t phase the project? How should your approach your implementation?

 

5) Don’t Overlook Training

Once your CRM is up and running it can be a relatively common impulse to rush back to work using the new CRM tools you just spent so much time planning for and implementing. 

CRM Training Ideas However, before you take off running back to business, it’s time to think about training.

Make sure everybody who’ll use the system knows exactly how to do so – train them!

Even if your new CRM makes life easier all around the office, your employees probably won’t be able to sit down on launch day and navigate their way through the system without some prior knowledge.

Take the mystery out of business changes by training your staff for a new CRM implementation.

 

6) Streamline Procedures

While you may be in the mood to shake things up by deploying a new CRM, you may not have thought to shake up your very business processes themselves.  Well, in the name of efficiency, why not?

Streamline with a CRM Use your CRM Implementation as an opportunity to streamline your procedures!

There isn’t an exact science behind this, but we’re willing to bet the majority of businesses who elect to set up their own CRMs aren’t so well-versed in how their systems work. There’s a good chance that they’re missing some opportunities to streamline processes inside of their unique CRM systems.

Be sure to hand off the right CRM data at the right time. Get our tips.

 

7) Don’t Rush Deployment

We’re all imperfect and even the most meticulously planned project doesn’t go live without at least a little need for adjustment. We share this so it’s not a surprise when your system doesn’t work exactly how it should the very first day you go live. 

CRM Testing pre-deploymentOur best advice is: Don’t rush deployment; make sure everything works like it should.

There will be a few hiccups. Some common first-day needs and troubles with a new CRM implementation can include: 

  • Understanding the CRM use processes themselves
  • Answering errant questions missed in training
  • Retraining team members on some aspects of the CRM
  • Finding the data you were sure you migrated correctly  

Don’t worry!  These sorts of speed bumps are absolutely normal during the first few days of an implementation of any new program.

Don’t miss our thoughts on cutting down on new implementation ‘hiccups.’

 

8) When in Doubt, Keep Things Simple

By now you likely know that CRM deployment isn’t quite as simple as you may have first thought. Your research may have shed a bit of light on problems you weren’t aware of, or made you remember more clearly some implementation problems you’d thought of before.

Simplify CRM ImplementationFor a process that’s invariably complex, there’s one thing that always holds true: when in doubt, keep things simple.

The time you implement a new CRM is a great time to re-think your data entry and information-sharing procedures. Ask yourself, “How much information do I need entered in the new system to achieve the desired outcome?”

Perhaps you’ve used a legacy system for years that has data fields in it that have become obsolete. Maybe you’ve been faced with the task of including only some of your current CRM’s information in your new system, for any number of reasons.

How can you simplify CRM Implementation? Read on for the questions you should be asking.

 

9) Have an Open Door Policy

You can apply this tip to more than just CRM deployment. Upon deploying a new system of any sort, you’ll be greeted with both positive and negative responses. How do you deal with the pushback you might receive for doing something new?

CRM Project visibilityHave a CRM Project Open Door Policy

Keep your door open, as well as your training sessions and email threads. When making big changes to your business and employees’ work days with a new CRM, consider giving them all the information they need or want to make the transition smoother.

When you do encounter some blowback from your traditionalist employees, be sure to heed their criticisms. Then, explain calmly and succinctly what the new system does to either improve life or alleviate their concerns. Keeping your ear open lets employees know you’re willing to consider their feelings. Having an open door policy will ultimately make them happier in the long run, even if they aren’t satisfied at first with the new system.

Read more for info on extra training opportunities.

 

10) Use a Project Manager

If you’ve found this article, there’s a good chance you  know a few basics about getting your new CRM system deployed and running as it should. However, even if everything goes as planned, there’s one other thing you can do that will really cement everything together – and, improve morale for everyone involved.  Not quite a magic bullet, but, it’s darn close.

CRM project managerBe Successful the First Time With a Project Manager

It’s understandable if you can’t be the one to take this bull by the horns and ensure that all implementation steps are completed in a timely way – after all, you’ve got a business to run.  

Hiring a project manager, or selecting a capable champion within your company to take charge can work wonders for generating enthusiasm among employees. This resource can help by answering their questions, and acting as a liaison between you (or your teams) and your IT department (or your deployment consultants).

Keep reading for insight on selecting a CRM Project Manager.

 


 

We hope these 10 CRM Implementation Tips will help you. Find out how fully (or not) your organization has adopted your CRM.

 

Take the CRM Adoption Survey

 

Why Allowing Enough Time for Data CRM Migration is Crucial

CRM Implementation Tip #2:  | Don’t Underestimate Data Migration Time

 

As you’re working through all the considerations for CRM Implementation – and it can be a bit of a process – be sure to give a healthy amount of time to how you’ll migrate existing data to your CRM. 

 

CRM Data MigrationDon’t Underestimate Data Migration Time

 

Whether you’re already using a different CRM or a spreadsheet to keep track of all your data currently, this is a task that must be completed for a successful implementation.

 

When planning your project, or reviewing plans from your consultant, be sure to allow extra time for data migration. Don’t underestimate it! Looking for more insight beyond data migration?

 

 

Read All CRM Implementation Quick Tips

 


CRM Data Migration Considerations

 

Even in the best of times, data migration isn’t a one-fell-swoop sort of maneuver. Discrepancies between modules in different CRMs can prolong the process.  

 

  • Additionally, if you want to migrate old data into a new CRM with customized data fields, your old data will have to be mapped to those new fields.  
  • If you choose to import and map the data yourself, you’ll have to allot time to learn how the system works. 
  • If you get help from a CRM consultant, you’ll probably spend at least a couple of phone calls and email threads explaining how you want everything to look.  

 

No matter what, the migration process is one that takes time. In our experience, it’s better to overestimate. Then you’ll be pleasantly surprised at the outcome. Underestimation can lengthen the project and catch you off guard. If you aren’t quite sure how much time data migration will take, give yourself a month. And, if you aren’t comfortable blocking off that much time, you can always get the help of a certified consultant.

Is your organization using its CRM to the fullest? Take the CRM Adoption Survey and find out where you stand.

Take the CRM Adoption Survey

 

Your CRM Should Support Your Sales Cycle

CRM Quick Start Tip #1: Align CRM with Sales Cycle

If you’ve already started your project, or are starting your research here, this CRM Implementation Quick Start Tip to examine your sales cycle to determine what you really need is crucial.

CRM Implementation Tip #1

Getting honest about your business needs and goals is a really important consideration. 

Out of the box, CRMs usually contain lots of functionality. At the core you likely require a CRM to support your sales cycle. With most systems, you’ll have the ability to enter companies and contacts. In addition, you will be able to convert them from leads to active customers. You can record notes about them, associate emails and sales orders with them…and likely, countless other bells and whistles you might not have known about.

Maybe your business doesn’t require all that functionality. If you run an insurance agency, for example, your needs may be perfectly satisfied with just half of those rudimentary features. Perhaps you may be able to do away with (or hide) several of the default modules inside your CRM entirely! You’re not losing functionality, in fact, these decisions to keep CRM aligned with your business can foster user adoption.

Read All CRM Implementation Quick Tips


CRM Questions to Ask About Your Sales Cycle

To determine the modules you need in CRM to support your sales cycle, begin with an outline of your exact sales cycle. Include all steps from prospective company (or lead) to contact. Start by answering each of these questions about your sales cycle: 

  • Do you run a phone-based business, or do you do more email marketing?  
  • Do you have a good deal of repeat business, or do your customers only see you once?
  • Do you require different sales processes for different products / services you offer?
  • What channels do you use to communicate with your clients?
  • If your cycle is known, then have you already defined your entire sales process, but have trouble tracking it?
  • What KPI’s SHOULD you track to move the needle, and can your system currently do so?

Different styles of communication and different sales processes require different kinds of fields inside your CRM. So do repeat customers versus one-time clients. At ZBrains, we specialize in Zoho, but we believe this information is compatible with all CRMs because of their very nature.

Are you already thinking a little more like a consultant? Ensure you’re getting the most from your CRM Implementation.

Take the CRM Adoption Survey

Customer Segmentation

Customer Segmentation using RFM Model in Zoho CRM

Unlocking Marketing Success with RFM Customer Segmentation in Zoho CRM

Off the top of your head, you can probably think of a handful of your ‘best customers.’ Those that have purchased recently, purchase regularly, and spend a decent amount with your company. Have you considered using the RFM model widely applied to your entire book of business? RFM segmentation model allows you to segment or group your customer data for even deeper insights.  This means groupings like, “Best Customers,” “Loyal Customers,” and “At Risk Customers” are relatively straightforward to capture. And you can do it now in Zoho CRM! 

Keep reading to learn more about the RFM model and how you can put it to use in your business. 

 

What is the RFM model?

This acronym stands for Recency, Frequency, and Monetary value. This model, while not new, can provide you with new levels of customer information when using the data points in tandem.

  • Recency: how recently did your customer purchase from you?

  • Frequency: how frequently does your customer purchase from you?

  • Monetary: how much does your customer spend with your business?

The three dynamics of data in this model combine to give powerful information to your customer behaviors, and can help with strategy, planning and sales approach. In Zoho CRM, this model comes with some predefined and weighted values which makes implementation very straightforward. But first, let’s take a look at a little more about how the RFM model and customer segmentation can benefit your business. 

 

How does the RFM segmentation model benefit your business?

Segmenting RFM data can benefit your business in several ways across sales and marketing departments. At the crux of it is the value in knowing your customer. However, here are a few additional points that illustrate how RFM segment data can be beneficial:

  • You can speak to the right audiences at the right time (targeted marketing). When you ensure your promotions are timely and accurate, you improve customer satisfaction and retention. This can ultimately impact your Customer Lifetime Value (LTV), an important KPI for a lot of industries [link Saas & Tech KPI’s article].
  • Timely, targeted messaging ensures you avoid marketing fatigue among your audience.
  • When you know your customers and in which segment of the RFM model they reside, you can better allocate your marketing budget.
  • RFM data can show areas with growth opportunities. For example, that could look like incrementally increasing the frequency of orders a customer makes with your company. Or inversely, using recency data to identify and re-engage customers who may not have purchased recently.

Because the RFM model is numerical, straightforward, and intuitive you will find that its output is relatively easy to understand and interpret. The result is a high-level view of customer behavior that can be mixed and matched for new sales and marketing approaches that weren’t previously possible without the data.

 

Combining RFM with other Data for deeper insights

Customer groupOn its own, RFM segmentation data is powerful, but having these metrics to combine with other key performance indicators can provide even greater value. Use the data for the successful customers you already have to determine what you did to acquire them, and then apply this new knowledge to your next acquisition efforts to save time and money.

An example of this would be to take your highest performing segment (where Recency, Frequency, and Monetary value all rank highly), and overlay geographic data. From this you may be able to see which areas of the country, or world, your best customers reside. Then you can use this information to craft targeted messages to ‘look alikes’ for an acquisition campaign.

Similarly, you can combine RFM data with age, gender, title, products purchased, sales agents they interacted with, company size, and on and on. The result is you can answer such questions as:

  • Where are my best customers located? 
  • How big are their companies? 
  • What is the title of the person who converts? 
  • What does the product mix of our most successful customers look like?

And with those answers you can model your business to meet the needs of your best customers. 

We hope you’re convinced that the information RFM captures for marketing, sales segmentation, and business strategy can take you a long way.

 

Put RFM Scoring into Action with Zoho CRM

Zoho CRM introduced this new segmentation feature in 2020. The system comes with some widely applicable segments already defined, with the scoring matrix already completed. The scoring for each segment of R, F, and M ranges between 1-5 points. The number 1 indicates low performance and 5 is high performance. It is probably best to customize your segments based on your business. However, the predefined segments give you a good starting point.

An example of segments could include,  “A+ Customers”  or best customers who purchase recently, often, and have a high spend. Your “Loyal Customers” might have a good spend and be responsive to promotions. There are a few others in addition to “At Risk” or “Churned Customers” who generally had a high spend, but have not purchased in a while.

Finding these segments in your Zoho CRM is as simple as applying filters to your account list. At that point, you can apply tags, and use them in your sales and marketing campaigns. 

 

Interested in putting the RFM Model and customer segmentation to work in your Zoho CRM? Start a conversation with one of our Sales Architects.

KPI's for your SaaS and Tech business

Maximizing Business Insights with KPIs for SaaS and Technology

In part three of this series for Technology and SaaS organizations, we ask you to consider – What are the top key performance indicators (KPI’s) for your industry? Are you successfully using KPI’s to manage your business? Do you track, report, and utilize this data on a regular basis, looking for improvement opportunities? 

There’s a good chance you’re living the same current reality as a lot of SaaS and Tech-focused businesses in 2020. You’ve been impacted by a global pandemic; it might look like slowing down, frequent starts and stops, lay-offs, and shifts in the How and What that have long been a focus. You might find yourself in a position to redefine or even re-invent aspects of your business. McKinsey and Co. recently published that redeploying talent, improving productivity, and shifting operations as three of five recommendations for reinventing your organization, post-Covid. We agree, and have done some of those things here at ZBrains.

If you’re reading, and you’ve already identified and are successfully using data to capture KPI data for business insight, we’d like to present you with a stretch goal as you read through the article. Think about the competitive advantage of your business, the thing that sets you apart from your competitors. 

  • What differentiates you? 
  • And are you able to measure it today? 
  • How would your business change if you could measure and act upon your differentiator? 

Perhaps the content in this article can help trigger some ideas for you.

Maybe your KPI’s are unknown or underutilized. If so, you might be losing out on opportunities to set you up for a better trajectory in an unstable environment. We recommend this article for examples of some Key Performance Indicators used in SaaS and Technology businesses. While there are many, many more than listed here, the KPI’s we share are more or less universal for each segment where they’re listed. We hope this helps to give you ideas about the other data you want to capture. (You may even want to bookmark this article for reference again later.)

Is Zoho the Key to Capturing and Reporting Business Data?

This all boils down to financials and time tracking each of the seemingly small areas of your business that add up to something sizable. Today, you might pay for  many platforms, applications or systems, and a change to one can affect the others. The result is, they require development expenses. Maybe you have to manage multiple vendors, or your teams are working from siloed data without a full view. Running reports and gaining visibility to your organization is solved with Zoho’s end-to-end solution. 

Quit struggling to track your KPI’s, and avoid the disparate systems of data that make global reporting cost-prohibitive and time consuming.

Keep reading for KPI’s by industry for technology and SaaS organizations, and some thoughts about how you can put them into action with Zoho.

Technology Industry KPI’s

You’re probably like a lot of tech companies: there is no shortage of data, and you generally have a lot of subject matter expertise close at hand. But have you put the most important pieces of data into focus when making business goals and plans? Align your KPI’s with your plan.

Big picture metrics are easy to capture using the Zoho suite of apps. From Survey, CRM, and Inventory you can get a full view of upcoming sales, successful deliveries, and satisfied customers in one ecosystem.

  • Net Promoter Score

Net Promoter or Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of a firm’s customer relationships. It serves as an alternative to traditional customer satisfaction research and is claimed to be correlated with revenue growth.” – Wikipedia on Net Promoter Score

  • Pipeline

Your marketing and sales pipeline and the metrics you can achieve from it are revenue indicators. This information in your pipeline can also tell you when to dive deeper into sales staff issues, help with ideal customer identification, and tell you if your leads are more likely to drop off during certain sales stages.

  • On-time Delivery

Process metrics like the on-time delivery KPI can tell you if operations are in good health. Potentially, it can be a lead measure for Customer Satisfaction. The information gathered in on-time delivery could also be an indicator of production resource viability. Or as a result, letting you know if it’s time to scale the team for greater production capacity.

Aside from these necessary and highlevel metrics, what are the metrics you’re having a hard time capturing? Zoho, because it’s almost endlessly customizable with the Creator app, helps create the features you need to ensure that data you need to capture to complete work is the function and data you get. Zoho Creator  puts the tools to innovate and improve your lot squarely into your hands.

SaaS Industry KPI’s

In your SaaS business, Marketing, Sales, and Customer Success all impact revenue growth and profitability. As with the other industry discussed in this article, there are MANY more KPI’s that you can employ when you’re building an executive dashboard. However, the three here (plus one bonus KPI) are the ones we think are the most indispensable KPI’s to keep an eye on.

  • Customer Acquisition Cost

Total cost of sales and marketing divided by the number of deals closed will give you Customer Acquisition Cost (CAC). Why does it matter to you? Most SaaS companies rely on a large volume of smaller scale sales over a period of time to generate revenue. For this reason it is important to acquire leads and customers at a price that does not negatively impact revenue.

  • Monthly Recurring Revenue

Regardless of your subscription model, monthly recurring revenue as a KPI is foundational to your business. Take the total number of paying clients by the average revenue per customer to achieve this figure. Straightforward really, but if you have a lot of pricing variants, it can get sticky. (Bonus points if you can segment your recurring revenue by new vs existing clients.) Taking into account your known churn rate when looking at MRR could give you insight into whether or not it’s time to acquire more accounts.

  • Customer Lifetime Value

Lifetime value or LTV is commonly regarded as a “north star metric,” one that matters above all others when determining strategy and goals for a business. Managing the gap between your CAC and LTV are essential to success.

  • Churn Rate

Customer Churn is natural, but how will you identify when it’s too much? (SaaS industry average is said to be between 5-7% annually.) The outlay of cost (CAC) to acquire a new client is usually significantly greater than the cost of maintaining an existing customer. Therefore the lower your churn rate, the less you may have to invest in acquisition. You might also consider Churn Rate a lag indicator of customer satisfaction.

The four KPI’s shared here are a solid underpinning of the metrics we recommend for SaaS organizations. Naturally, Zoho allows you to capture and utilize more data. As we mentioned earlier, the Creator app can bring your vision to life.

Why should you care about using SaaS and Technology KPI’s to manage your business?

We’ll end with a quick summary of points to keep in mind as you determine which KPI’s to use in your business. Which KPI’s  are most important to you, and can you get your hands on the data for them? Here six key reasons we think you should consider using SaaS and Technology KPI’s to manage your business: 

  • KPI’s can offer early identification of issues (lead measures)
  • You get visibility to overall company health without a great outlay of executive time
  • Next, reference and use KPI’s as guidance for decision making and strategy
  • High level metrics make it easy to communicate business goals with your environment
  • They will help you become familiar with patterns in your organization
  • Finally, they can help you key in on the areas for necessary  performance improvements

If you’re taking the next steps to learn more about achieving more by using KPI’s to manage your Technology or SaaS business, contact us any time.


Looking for more about KPI’s? Read about Field Services and Construction or Manufacturing and Distribution.

Using KPI's to manage your business

Managing & Distribution KPIs: Maximizing Manufacturing Efficiency

In this three part series we ask you to consider, What are the top key performance indicators (KPI’s) for your industry? Are you using KPI’s to manage your business successfully? Do you track, report, and utilize this data regularly to improve your manufacturing or distribution business? In this segment, we’ll look at KPI’s and considerations for manufacturing and distribution organizations.

manufacturing in a canning facility

There’s a good chance you’re experiencing the same current reality as a lot of manufacturing and distribution organizations in 2020. You’ve been impacted by a global pandemic; you could be slowing down, frequently starting and stopping, performing lay-offs, and shifting the How and What that have long been a focus. You might find yourself in a position to redefine or even re-invent some or many aspects of your business. McKinsey and Co. recently shared that redeploying talent, improving productivity, and shifting operations are three of five recommendations for reinventing your organization, post-Covid. We agree, and have taken on some of these ourselves here at ZBrains.

Using KPI’s to Manage Your Business

If you’re reading, and you’ve already identified  – and are successfully using – data to capture KPI data for business insight, we’d like to present you with a stretch goal as you read through the article. Consider the competitive advantage of your business, the thing that sets you apart from your competitors. 

  • What differentiates you? 
  • And are you able to measure it today? 
  • How would your business change if you could measure and act on your differentiator? 

Perhaps the content in this article can help trigger some ideas for you.

If your KPI’s are unknown or underutilized, you might be losing out on opportunities to set you up for a better trajectory in an unstable environment. We recommend this article for examples of some Key Performance Indicators for your industry. While there are many, many more than listed, the KPI’s we share are more or less universal for each industry where they’re listed. We hope it gives you ideas about the other data you want to capture. (You may even want to bookmark this article for reference again later.)

Keep reading for KPI’s by industry for manufacturing and distribution, and some thoughts about how you can put them into action with Zoho.

Manufacturing Industry KPI’s

The metrics required to successfully operate your manufacturing business are many and varied depending greatly on how and what your business is doing. However, speed and accuracy are paramount to doing it successfully with a gainful ROI. Here are three metrics for manufacturing that we think are fundamental KPI’s.

  • Overall Operating Efficiency

This high-level metric is the ratio between output and input in your business. Are you getting out what you’re putting in? This metric can also apply to employees in terms of “are they maximizing their ‘on’ time and creating value for the business.”

  • Profit Per Employee

As a lag measure, Profit per Employee can show you which lead measurements are progressing perfectly, or which areas need attention. This measure can help you bring to light the areas where profitability could be improved. 

  • Capacity Utilization

This KPI gives insight to one of the most important pieces of information for manufacturing businesses: Is your production being fully utilized? There are associated costs to equipment, people, and space. You can ensure that each is being maximized as needed using this data. Additionally, capacity utilization can give visibility to work balancing as certain production centers are selling more or less at different times.  

What additional KPI’s are essential to your manufacturing operations?

Distribution Industry KPI’s

Total sales, cash flow, and margin are essential metrics for distribution, but they’re arguably necessary for most types of businesses. Whether your business is ecommerce, industrial equipment, consumer goods, or something different, you still need to know much of the same standard information. With that in mind, three important metrics to track in your distribution center, specifically relevant to distribution KPIs, are:

distribution center KPI

  • Inventory Turnover Ratio

This metric will give you purchasing trend insight. As a result it can show you which items may not be advantageous to keep, or which items require higher inventory levels.

  • Profitability by Item

You can inform larger strategies by knowing which areas (products, customers, and markets) are most profitable for you. Your Distribution and Sales Teams will thank you for making this data available! 

  • On Time Shipping Ratio

Compare items or distribution centers, and find trends in shipping for performance improvement opportunities. This data can inform things like warehouse product organization, capacity utilization, and more whether it be an overall systemic issue or an item specific one.

Does your company have any data that’s been difficult to lock in? ZBrains consultants specialize in helping you identify, organize, and utilize this information for better business results. We help you bring all the pieces together from quoting to inventory and finance

Why should you care about using KPI’s to manage your business?

We’ll end here with a quick summary of points to consider when you are researching KPI’s to use in your business. Think about which are most important to you, and can you get your hands on the data for them? Here six key reasons we think you should consider using KPI’s to manage your manufacturing or distribution business: 

  • KPI’s can offer early identification of issues (lead measures)
  • You get visibility to overall company health without a great outlay of executive time
  • Reference KPI’s and use them as guidance for decision making and strategy
  • High level metrics make it easy to communicate business goals with your environment
  • They will help you become familiar with patterns in your organization
  • Finally, they can key you in on significance in areas needing performance improvements

Why is Zoho a great solution for helping you capture and report the data you need for your business?

This all boils down to financials and time tracking each of the seemingly small areas of your business. They can add up to big results. Currently, you might be paying for a lot of systems, and a change to one can affect the others and require development expenses. Maybe you have to manage multiple vendors, or your teams are working from siloed data. You can run reports and gain visibility to your organization using Zoho’s end-to-end solution. 

Quit struggling to track your KPI’s, and avoid the disparate systems of data that make global reporting cost-prohibitive and time consuming.

If you’re taking the next steps to learn more about achieving more by using KPI’s to manage your manufacturing or distribution business, contact us any time.


Looking for more KPI’s? Read about Field Services and Construction or Technology and SaaS.

Field Services and Construction Feature image

Field Services & Construction KPI’s to Manage Your Business

In this three part series we ask you to consider, What are the top key performance indicators (KPI’s) for your industry? Are you using KPI’s to manage your business successfully? Do you track, report, and utilize this data regularly to improve your field services or construction business? In this segment, we’ll look at Field Services and Construction KPI’s you should consider.

You’re probably living the same current reality as a lot of field services or construction businesses in 2020. You’ve been impacted by a global pandemic; it might look like slowing down, frequent starts and stops, lay-offs, and shifts in the How and What that have long been a focus. You might be in a position to redefine or re-invent some aspects of your business. McKinsey and Co. recently noted redeploying talent, improving productivity, and shifting operations as three of five recommendations for reinventing your organization, post-Covid. We agree, and have taken on some of those things ourselves here at ZBrains.

If you’re reading, and you’ve already identified and are successfully using data to capture KPI data for business insight, we’d like to present you with a stretch goal as you read through the article. Consider the competitive advantage of your business, the thing that sets you apart from your competitors. 

  • What differentiates you? 
  • And are you able to measure it today? 
  • How would your business change if you could measure and act on your differentiator? 

Perhaps this article can help trigger some ideas for you

If your KPI’s are unknown or underutilized, you might be losing out on opportunities to set you up for a better trajectory in an unstable environment. We recommend this article for examples of some Key Performance Indicators used in field services and construction industries. Firstly, while there are many, many more than listed here, the KPI’s we share are pretty universal for each segment where they’re listed. It may give you ideas about the other data you want to capture. (You may even want to bookmark this article for reference again later.)

Job Costing for both field services and construction is paramount. You definitely want to have visibility to profit margin per job. This is calculated as direct materials plus direct labor, plus applied overhead. (Overhead can include things like hotel, travel, per diem, vendors, subcontractors, etc.)

 

Keep reading for Field Services and Construction KPI’s, and some thoughts about how you can put them into action with Zoho.

 

Field Services Industry KPI’s

electrician at workField Services companies dispatching technicians or contractors to customer locations for repair, installation, or maintenance have a specific set of business needs that must match each step of their process. And ensuring excellent communication is a must to give your customers a great experience.

Based on your current systems you may or may not be able to capture much of the data around these daily interactions. Out of the box, Zoho CRM is a system waiting to be customized. With the proper implementation, you are able to capture the essential information you want for your organization.

Here are three KPI’s we believe are among the top to consider for your field services business. 

  • Routing Efficiency

Are your techs getting to where they need to be on time? Are your crews wasting time with trips across town? Routing efficiency measurements using geolocation can help you see where lost time can be made up. This is just the start. Productivity gains are had here by matching the right technician to the job, and making sure they have the equipment and parts required. And training needs can be identified based on which of your techs require more time than allowed for specific jobs

  • Service Level Agreement Compliance 

This KPI reflects the relationship between customer experience and technician efficiencies. Empower your techs while they’re on site with information about the customer account history or service history insights when you give them access via Zoho CRM’s mobile app. 

  • Customer Satisfaction

Customer satisfaction is related directly to customer loyalty – it can be an indicator of repeat business likelihood, new customer referrals, and lifetime customer value. 

If you’re looking to get even more mileage with system integrations for field services or construction, we recommend taking a look at Field Tech. From quoting, scheduling, and job costing to invoice, expense, and equipment tracking — and more — Field Tech will connect your field service operation and optimize your workforce. 

 

Construction Industry KPI’s

Beyond standard financials, profit and productivity should be top of mind for most construction companies. When it comes to what other KPI’s you track in your organization, we recommend three primary areas to focus: quality, performance, and safety. There are multiple metrics that fall under each of these categories, and you should select those most relevant to your operations and business goals.

construction foreman on site

  • Change Orders

Tracking change order metrics can show you schedule impacts, and give insight for root cause evaluation. Consequently affecting customer satisfaction rates, this metric can show you how too many changes negatively influences the project budget.

  • Performance Overall  

Many performance metrics can relate to productivity as well, including: equipment downtime, resource capacity, on-time completion. Most any measurement of time will be an indicator of performance. How are you tracking performance for construction projects?

  • Number of Accidents or Reportable Accidents

A rise in accidents is a reason for you to take immediate notice. Most importantly, safety metrics help you protect workers by knowing if/when additional training may be required. Secondly, you can stay on top of increased healthcare or litigation costs from lack of safety precautions.

Do you have more questions about making Construction KPI’s a bigger part of your operation? We’d love to assist.  Start a conversation with one of our Zoho Certified Consultants

 

Why should you care about using Field Services and Construction KPI’s to manage your business?

We’ll leave you with a quick summary of points to keep in mind when you are figuring out which KPI’s to use in your business. For example, which things are most important to you, and can you get your hands on the data for them? Here six key reasons we think you should consider using KPI’s to manage your field services or construction business: 

  • KPI’s can offer early identification of issues (lead measures)
  • You get visibility to overall company health without a great outlay of executive time
  • Reference KPI’s and use them as guidance for decision making and strategy
  • High level metrics make it easy to communicate business goals with your environment
  • They will help you become familiar with patterns in your organization
  • Finally, they can key you focus in on the areas to make performance improvements

 

Why is Zoho a great solution for helping you capture and report the data you need for your business?

This all boils down to financials and time tracking all the seemingly small areas of your business that add up to big results. Currently, you might be paying for a lot of systems, and a change to one can affect the others and require development expenses. Maybe you have to manage multiple vendors, or your teams are working from siloed data. You can more simply run reports and gain visibility to your organization with Zoho’s end-to-end solution. 

Quit struggling to track your KPI’s, and avoid the disparate systems of data that make global reporting cost-prohibitive and time consuming.

 

If you’re taking the next steps to learn more about achieving more by using KPI’s to manage your field services or construction business, contact us any time.

 


 

Looking for more about KPI’s? Read about Technology and SaaS or Manufacturing and Distribution.

Identify Operational Inefficiencies

Overcoming Operational Inefficiencies: How to Identify and Solve Them

As a business owner or operator, it’s important to you to be aware of operational inefficiencies. You want to cut them off at the start, and keep your business heading in the right direction. You’ll find a lot of business advice online; however, the goal of this article is to help you identify the areas to look for operational inefficiencies. We’ll offer some considerations for you in terms of addressing the gaps in data you might experience as the operator of your business.

Get to know some indicators that your efficiencies could be off track are found in the realms of Planning, Scheduling & Quality Control. For example:

  • You may feel as though you don’t have control of your resources, 
  • You don’t have visibility to planning and scheduling (or there is a lack of it) 
  • Projects don’t seem to be the quality you want for your business
  • KPI’s are falling flat

These areas of uncertainty can leave you in a position of being unsure which issues to tackle next.

Firstly, consider each of the four scenarios above and how they apply to your business. What do you think you’re losing out on each month, or each day by not having access to the data required to solve these issues? Naturally, you’ll prioritize your biggest information gaps, and tackle those first. But how much more productive could your business be if right now you could see detail that gives actionable insight on each of these key points of operational efficiency?

With the right operating system for your business, you gain this visibility and will be on your way to identifying inefficiency with ease. In some cases you may even be able to become aware of the triggers that cause operational inefficiencies.

How can my business identify and track operational efficiency?

You’re having trouble getting a complete story for your business. Day to day it feels like the various resources you use to gain insight are contradictory at best. When you dig in it feels like micromanaging. As a result, there doesn’t seem to be a good way to get all the business metrics you need in one place. Your resources are dispersed across systems, and few if any of those systems are talking to each other, much less reporting together.

Zoho One is an operating system for your business. Comprehensive, integrated and customizable, this platform with 40+ applications can eradicate the roadblocks you’ve become accustomed to experiencing. Resulting in fewer or no departmental silos, but tools for everyone in your organization from Sales and Marketing to HR, Finance, and Operations.

Here are a few of the tools for each area of business that will be capturing the operational data you need:

  • Sales tools like mobile CRM, email, Telephony, social selling tools, live chat, online meetings and team communication tools are a part of Zoho One. Additionally, there are tools for  business intelligence, quotes, orders, and invoices that you need to fortify sales operations.
  • Marketing tools offered are also robust and include website builder, A/B testing, analytics, goal tracking, personalization, and multi-channel marketing applications. Wrap it up with marketing automation, reporting, and trackable KPI & ROI data.
  • Customer support is a lifeline for your customers in many cases. Zoho One tools like email, phone, social support (ticketing), live chat, self-service resources, remote assistance give many channels for communicating with your team. Additionally, bigger picture tools include support process automation, business intelligence, AI, CRM, and team communication tools. All this for an improved customer experience and the data you’re looking for. 

Don’t forget HR, Accounting, and Operations

  • HR Tools keep business running with solutions for talent acquisition, onboard, training, policy creation, resource management, and communications tools contributing to a culture of collaboration.
  • Accounting & Finance 
    • Receivables tracking: estimates, invoices, payments, and transaction matching.
    • Payables & Expenses: purchase orders, expense management, mileage tracking for reimbursement, and time tracking for projects.
    • Additional solutions include subscription management, recurring billing, and hosted pricing pages. 
  • Operations Tools consist of order fulfillment, service deployment, order management, multi-channel selling, warehouse management, project-based billing, and project management. Siloed communications are solved with the internal social network. Moreover, you can bridge with Sales & Customer Support teams using the customer portal. 

For any process or system not addressed, Zoho has tools to develop custom apps for web and mobile. And it offers integrations for greater business intelligence!

What is the solution to operational inefficiencies? 

With Zoho One, you’ll have your business situated in an ecosystem with a single sign on. For instance, this makes it simpler as an owner or manager to have complete control over business data. This includes identifying and addressing the Planning, Scheduling & Quality Control operational inefficiencies we mentioned at the start of the article.

In other words,  you can do it all within one ecosystem that utilizes the apps we just outlined.

Zoho One currently contains over 40 applications, all integrated. Firstly, they operate on the same platform so customization is generally more straightforward. Reporting on the business data you need to ensure efficiency in your operations is readily accessible. Additionally, only individuals you choose can access programs containing sensitive data, ensuring the information stays in the right hands.

If you’re looking for something that you can’t find in Zoho One, Zoho Creator is the low-code platform for creating your custom application. You can utilize it either on your own or with help from a Zoho Certified Consultant

Intriguing, you might be thinking. But all of that sounds too expensive and like quite an undertaking – it just doesn’t have to be with the right partner. ZBrains certified consultants have assisted clients since 2012. Above all, our speciality is value rewarding Zoho implementations and customizations so you don’t have to go it alone.

If you’re taking the next steps to learn more about squashing operational inefficiencies with Zoho One, contact us any time.

Zoho CRM Activities

Are you maximizing Zoho CRM Activity capabilities?

Is your organization getting the most it can out of your Zoho CRM activity data? Capturing CRM data is the heart of reporting and analytics for a lot of decision makers, and falling short in this arena can impact your business. Access to good data is a lifeline. 

It’s easy for users to fall into routine, and to use their CRM in the same old ways that are comfortable, familiar, and feel simple. And that’s the catch — it feels simple — when in reality, a slight change in a user’s data entry habits could garner information and efficiency gains for your business. Keep reading to find out if you are utilizing your Zoho CRM activity data capturing capabilities to the fullest. If you already are, maybe it’s time to consider employing some of Zoho’s newest features.  

Zoho CRM Activity: Are Users Utilizing It?

A number of Zoho CRM Activity features are standard and you may not be using them now.  Here’s a short checklist of low-hanging fruit you should really consider if they’re not already a part of operations.

⬚ Calendar Sync

Zoho CRM syncs with the following calendars:

  • Gmail / Google
  • Office 365
  • Outlook
  • Apple Calendar
  • Zoho CRM Calendar

Synching your calendar to Zoho CRM allows functions such as calling directly from the calendar for your scheduled activities. And it streamlines scheduling those follow up calls! 

Calendar sync also improves visibility with your teams. Calendars can be shared so other users can view them, and users can set email reminders for the people they’re engaging with. With a sync to Zoho CRM, users are able to edit and view their calendar activities on any device wherever they are.

⬚ Mobile Sales App

Speaking of “wherever,” the mobile sales app for Zoho CRM is another powerful tool for your teams in the field. From sales to service technicians, none of us is really ever without our mobile phone these days. Is your organization taking advantage of these opportunities to reference and capture data on the go?

  • Use global search to look up contacts, and call directly from the app. Notes can be typed in or use the voice-to-text feature by speaking notes into your phone!
  • When working offline, any changes made to Zoho CRM will automatically update and sync when you reconnect. No more wasted flight time, or worrying about not having a connection in the field.
  • With Zoho CRM mobile app, every activity for your day is available any time, and new ones can be scheduled there, too.
  • Find customers and prospects in your vicinity by viewing the map. Get the most out of sales conversations when you brush up on their details before calling or stopping in. (P.S. It can also navigate to the account address!)
  • Zia is available in Zoho CRM mobile app. This AI acts as a virtual assistant that can help with simple tasks like changing a deal status, calling contacts, creating a new record, and adding notes to records.

⬚ Workflow Automation

Being timely in interactions with leads and contacts is an essential part of ensuring a great customer experience. Zoho CRM helps with this when you implement Workflow Automation. After setting up, it can alleviate all the smaller tasks associated with a sale. Your team will appreciate the automated forms, reports, CRM notifications, and contact or lead follow-ups. Cutting down the noise helps create more space for efficiency. Your teams gain the time required to close deals, resolve customer pain points, and keep on top of upsell opportunities. 

Don’t forget — workflow insights show you what’s working, or not.

⬚ Custom Functions

Perhaps your Sales, Marketing, Operations, or Finance departments are all using Zoho and your business has a particular process that can’t quite be captured by Zoho’s many standard functions – enter the custom function.

Whether you do it yourself using Zoho Creator, or work with a consultant like ZBrains,  custom functions serve to assist in bringing your vision to reality. 

New Features in Zoho CRM for Activities and Beyond

At ZBrains, we took a particular interest in a handful of the new Zoho CRM features this year. Maybe you’ve already seen them? If you’re using any of these, are there opportunities to improve and refine your processes across departments? From segmentation and attribution to analytics, and sales pipelines, these new features allow you and your teams to get focused using a data-driven approach to business. Let’s take a look:

Customer Segmentation

Customer lifetime value is an incredibly important metric for most businesses because we know it’s easier to convert a sale when your client knows you already. Use this feature to find your most valuable customers  based on a model of recency, frequency, and monetary value of their purchases. Gauge their lifetime value with this tool and let your sales and marketing professionals identify existing up-sell or cross-sell opportunities.

Your business can further segment customers for focused selling or special campaign initiatives using dimensions like  product interest, geography, industry, or a combination of factors.

Call Customization

Now you can customize your incoming and outgoing call details. Capture sentiment, call purpose, or any data needed using pick lists, text fields, and more. Call customization can also include Workflows, allowing you to streamline the data required for various types of call interactions.  

Webform analytics & testing

Webforms in Zoho CRM is key in capturing new leads and the interests of your website visitors. Boost lead generation efforts with webform performance analytics. This new feature allows you to track webform fields and geographical information so you can more easily identify why your forms aren’t converting and revise them for better outcomes. Lead revenue can be attributed to your webforms, giving your business and end-to-end view of the most profitable leads.

A/B testing gives you the data needed to refine and improve lead capture with webforms. Your marketing team are not a mindreader, but this tool can get one step closer to delivering what appeals most to your website visitors. 

Remember, your webforms can connect right up to Workflow Automations to inform your sales agents immediately when valuable new leads enter the pipeline.

Marketing attribution

New Marketing Attribution features allow your business to fortify the connection between sales and marketing and continuously refine for results that improve over time.  You can identify:

  • Which campaigns result in the best ROI.
  • Which campaigns have attributable revenue.
  • Overall campaign performance.
  • Best performing sales & marketing channels.
  • Sales pipeline effects of your campaigns and more.

Multiple Pipelines

Every business is slightly different, and yours is likely no exception. This could mean that within your business you experience the need for multiple sales pipelines in order to accurately capture data like sales and marketing activities about your lead-to-customer journey. 

The new Multiple Pipeline feature in Zoho CRM enables your teams to capture that data in a meaningful way allowing for special pipeline factors like geography or territory, product line, and more. With multiple pipelines, you can create custom stages with specific activities and data entry requirements to meet your business needs. Then you can use this data in reporting to analyze your sales pipeline performances. 

Intelligent Automation

Earlier in the article, we mentioned Zia, the Zoho AI application that can help with tasks like creating activities, placing calls, and more. But with recent feature updates, Zia now assists with Intelligent Automation. It can suggest macros to automate that make the life of a sales agent or consultant much simpler, alleviating repetitive tasks that somehow suck up hours each week. Zia uses your routines to suggest macros, but they can also be created independently. 

Which repetitive sales routines would you automate?

Final Thoughts on Zoho CRM Activity uses and New Zoho CRM Features

No one knows your business better than you – so, you shouldn’t feel pigeonholed to use Zoho in a way that doesn’t make sense for your teams and your business. You can take advantage of the features we talked about above, gaining traction by employing their benefits and customizing your Zoho CRM environment. 

Whether you’ve decided to start on your own and need a little help, or are interested in assistance from our certified Zoho professionals, we’re here to sit down with you in a consulting engagement called a Business Process Analysis. [link Zoho Difference] Our goal is to learn about your business and offer a solid plan for moving forward – a technological roadmap.  Your plan will contain a certified Zoho solution, something we can stand behind. Contact us any time.