This lesson explores the specific KPIs used to measure CRM effectiveness across the customer lifecycle, from acquisition through retention and loyalty.

2.1 Customer Acquisition KPIs

  • Customer Acquisition Cost (CAC): The total cost of acquiring a new customer, including marketing, sales, and onboarding expenses

  • Conversion Rate: The percentage of leads or prospects that become customers

  • Lead Response Time: Average time taken to respond to a sales inquiry

  • Time-to-Onboarding: Duration from initial contact to account activation

2.2 Customer Retention and Loyalty KPIs

  • Customer Retention Rate: Percentage of customers retained over a specific period

  • Churn Rate: Percentage of customers who leave over a period

  • Customer Lifetime Value (CLV): Total profit a customer is expected to generate over the relationship. This is a crucial metric that shifts focus from individual transactions to long-term value

  • Net Promoter Score (NPS): A measure of customer loyalty and advocacy, asking how likely customers are to recommend the bank

  • Customer Satisfaction Score (CSAT): A direct measure of satisfaction with a specific interaction

2.3 Service Quality and Operational KPIs

  • First Contact Resolution (FCR): Percentage of issues resolved on first contact

  • Average Resolution Time: Average time taken to resolve customer issues

  • Service Level Agreement (SLA) Compliance: Percentage of cases resolved within agreed timeframes

  • Abandonment Rate: Percentage of customers who abandon a service interaction (e.g., call center, online form)

  • Customer Effort Score (CES): A measure of how easy the experience was for the customer

2.4 Sales and Revenue KPIs

  • Share of Wallet: Percentage of a customer’s total banking business that the bank captures

  • Cross-Sell Ratio: Number of products per customer

  • Revenue per Customer: Total revenue generated per customer

  • Product Penetration Rate: Percentage of customers using specific products

As the University of Exeter’s module emphasizes, developing advanced skills to interpret data and derive actionable insights is a key learning outcome .

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