Our retail guide’s last chapter explored ways to boost your store’s success through innovative finance, operations, and customer relations practices. As you manage your store, pay close attention to critical metrics and KPIs for a clearer picture of performance.

These retail metrics include sales, inventory, and customer data. Discover why these metrics are crucial, which ones to focus on, and get practical tips to enhance their effectiveness.

The importance of monitoring retail metrics and KPIs

1. Measures your progress

Measuring metrics and Key Performance Indicators (KPIs) is essential for evaluating individual and team performance in your business. This assessment guides performance reviews, goal setting, and improvement efforts.

Monitoring metrics and KPIs in retail is vital to assess overall business performance and alignment with strategic goals. The practice helps identify successes and areas for improvement.

2. Aids in decision-making

Retail business owners, it’s vital to base your decisions on data for effective planning and execution. Metrics and KPIs offer valuable insights, showing what works well and pointing out areas that need improvement.

Use metrics and KPIs to optimize resource allocation. Identify high-impact areas so you can deploy resources effectively. It ensures your time, manpower, and financial investments go where they’ll contribute the most to your business success.

3. Risk management

Keeping a close watch on significant numbers is essential for retail business owners. Check your cash flow and liquidity ratios regularly. These indicators can give you an early heads-up about economic ups and downs.

Keep an eye on your supply chain metrics, too. These metrics help you spot weaknesses, diversify suppliers, and be ready with backup plans. Taking these steps upfront lessens the hit if there are any bumps in the road for your business.

4. Improves employee performance

Boost your employees’ performance using metrics and KPIs to measure their satisfaction and productivity. These metrics serve as a straightforward scorecard, giving your employees a clear picture of their performance.

Equip your team with essential metrics to help them establish and achieve meaningful goals. This accountability fosters a culture of responsibility and continuous improvement in your retail business.

Key metrics and KPIs in retail business

1. Conversion rate

Conversion rate is a must-watch metric for retail, whether online or in-store. It shows the percentage of visitors who purchase, giving you more insight than just counting transactions.

A high conversion rate means many visitors become customers, pointing to successful marketing and retail sales tactics. Keep an eye on this metric to spot where you can enhance the customer experience, like improving product displays, making your website more user-friendly, or smoothing out the checkout process.

2. Foot traffic

Foot traffic means the number of people entering your store. You can track it using electronic counting systems or manually counting during peak hours.

Analyzing foot traffic alongside metrics like the conversion rate is crucial, as it helps you gauge how well your store turns visitors into customers. Also, comparing foot traffic across various periods unveils seasonal patterns and reveals the impact of marketing efforts.

3. Sales per square foot

Sales per square foot tells you how well you use your store space to make money. It’s a measure of how productive your layout, where you put products, and your overall use of space is in bringing in retail sales.

A high sales per square foot means your store setup is good, and customers enjoy shopping there. Check if all your stores or departments are doing well. If this number continues, your retail strategies work, and you use your space effectively.

4. Average transaction value

ATV is the average amount a customer spends in one transaction. It’s critical for grasping customer buying habits and how well sales strategies work.

Increase your retail earnings by cross selling or having discounts on larger purchases to boost the average transaction value (ATV). Monitor trends and customer groups to make targeted improvements for maximum profitability.

5. Customer retention rate

Customer Retention Rate measures the percentage of customers a business retains over a specific period. It provides insights into customer satisfaction, loyalty, and the effectiveness of efforts to keep existing customers.

A rising CRR signals satisfied customers; if it drops, address product quality or customer service. Strive to balance acquiring new customers and retaining existing ones to ensure sustained retail success.

6. Gross profit margin

Gross profit margin is the percentage of money you make from selling your products after accounting for how much it costs to make or buy them. 

Aim for a higher gross profit margin because you manage costs well and effectively pricing your products. Keep an eye on this number to catch any issues with costs or pricing that might affect your overall profit.

7. Year-over-year growth

Year-over-year (YoY) growth is a way to measure the percentage change in a specific business metric from this year compared to the previous year. This comparison provides a solid understanding of your business’s performance trends and helps evaluate how well your strategies work.

Analyze year-over-year (YoY) growth across sales, revenue, and customer acquisition for a comprehensive view. Positive YoY growth is encouraging, but understanding the reasons is crucial, while negative growth prompts a thorough examination of strategies and operations for improvement.

8. Inventory turnover

Inventory turnover shows how fast a business sells and restocks its products, telling you how well you manage inventory and if there’s demand for your goods.

A higher turnover is good, meaning products are selling fast. Yet, if it’s very high, you might be running out of stock, and if it’s low, you could have too much stock or slow-selling items. Keep an eye on this to balance your inventory right.

9. Sell-through rate

The sell-through rate is a tool that helps retail business owners understand how efficiently they sell the products they have in stock. It’s calculated by dividing the units sold by the initial inventory quantity, providing a percentage that indicates the rate at which inventory turns into sales.

For retail businesses, a reasonable sell-through rate means products are selling fast, but be cautious of an excessively high rate that could lead to stockouts or a low rate indicating overstock. Regularly track this metric to fine-tune inventory strategies, ensuring optimal retail sales without excess or shortages.

10. Stockout rate

The stockout rate is how often a retailer faces inventory shortages or runs out of a specific product, directly influencing customer satisfaction and potential retail sales.

A low stockout rate in retail signals effective inventory management, preventing lost sales and maintaining customer satisfaction. Reviewing stockout data is crucial for optimizing inventory levels and strategically adjusting procurement or supply chain processes.

11. Shrinkage

Shrinkage is the difference between the recorded and actual stock on hand, usually expressed as a percentage. It includes losses from theft, errors, and other unaccounted factors.

Excessive shrinkage can negatively impact retail profits, making it vital to monitor trends and address areas for improvement, such as security measures, inventory management, and employee training. Retailers must thoroughly investigate and address the root causes of shrinkage to minimize financial losses effectively.

12. Gross Margin Return on Investment (GMROI)

GMROI is a key metric that helps you assess how profitable your inventory is by looking at the relationship between the gross margin and the average inventory investment.

A higher GMROI indicates a superior return on inventory investment. Optimize profitability by balancing high gross margins, swift inventory turnover, and regularly adjusting product assortments and pricing strategies.

Best practices for monitoring retail metrics and KPIs

1. Select relevant metrics and KPIs

Choose metrics and KPIs that directly relate to your business objectives. It’s better to focus on several key indicators that provide actionable insights rather than measuring everything.

When assessing metrics for your retail business, focus on what truly helps you improve. Get rid of metrics that don’t contribute to your goals, concentrate on the ones that do, and skip unnecessary measurements to save time and resources.

2. Set realistic targets

Setting clear targets for your KPIs is crucial to measure your retail business’s performance effectively. Know your business goals and avoid setting too ambitious or unattainable targets.

When setting targets, consider realistic values that make sense for your specific retail context and look at industry benchmarks for guidance. Doing this will ensure your goals are practical and achievable, preventing frustration or setbacks caused by setting too high or unrealistic targets.

3. Use data visualization 

Once you’ve selected your metrics and KPIs, transform them into actionable insights instead of just numbers. Opt for visually engaging formats when presenting data, as 65% of the population learns better through visuals.

Streamline comprehension for stakeholders by incorporating dashboards and visualizations. Take advantage of tools that offer diverse dashboard options for a centralized presentation of your KPIs and metrics.

4. Use real-time monitoring

For retail business owners, integrating real-time monitoring is a game-changer. It gives you instant insights into crucial metrics like sales and operations, making it easier to make timely decisions and tackle issues as they arise.

Utilize ERP software to streamline real-time monitoring by consolidating data, ensuring accuracy, and facilitating informed decision-making for overall business improvement.

5. Be flexible

Ensure your retail metrics and KPIs stay current with your business goals and challenges. It sharpens your monitoring system, allowing for swift adjustments in response to market shifts.

Updating your metrics isn’t a mere formality — it’s a practical step to enhance your retail business’s agility. By fine-tuning your metrics based on real-time insights, you can proactively address issues and keep your store agile, ready to seize emerging opportunities.

Summary

Running a successful retail business requires careful attention to metrics and key performance indicators (KPIs). Yet, manual tracking can be cumbersome and challenging due to the real-time nature and many variables.

For a more efficient approach, consider investing in an ERP system to streamline your operations. In the next chapter of our guide, we’ll delve into the various types of software and technology essential for retail businesses, highlighting their significance and providing insights on what to consider when purchasing.

References

Ramsey, D., & Ramsey, J. (2010). The Everything Guide to starting and running a retail store: All you need to get started and succeed in your own retail adventure. Adams Media.

As a project manager, you must have experienced a time when deadlines are adding to your workload. Projects keep stacking up, and none of them ever ends up finished.

But, you are in luck. Numerous solutions are available nowadays to assist you in managing your job.

However, we understand that choosing the right solution can be a daunting task. You may also lack the necessary information to make an informed decision.

That is why we are here, to help you make the right choice.

20+ best project management software

We have compiled 20 of the best project management software in the market today. Our list will explain each software’s features, price, and benefits. So you can gain better insights into which software is right for your company.

1. Trello

Trello is a web-based project management tool with a built-in collaboration tool. The application is like a whiteboard, making it easier to work together visually. With Trello, your team can manage anything from personal tasks to complex workflows.

Features:

• Customizable boards, lists, and cards
• Ability to assign members to tasks with deadlines
• Leave comments on tasks
• Butler automation
• Integrations with other applications

Key benefits:

• It is easy to use with its high visual interface
• Enhances team collaboration and communication
• Keeps team members on track with their tasks

Price:

Trello offers free and paid plans, ranging from $5-$17.50/user/month. The basic free plan lacks automation features and has a limited monthly workspace.

2. Asana

Asana is a cloud-based application that enables teams to plan and organize projects. Asana is adaptable and flexible. You can schedule tasks in a way that suits your organization.

Features:

• Task and workload management with the ability to subtask
• Set task dependencies, making it clear when a task is ready to start or waiting on others
• Actionable insights for real-time progress across projects
• Calendar view for projects
• Gantt style view
• Mobile application

Key benefits:

• Drag and drop makes it easy to use
• The centralized platform improves team collaboration
• Asana offers various customizable views
• Accessible from anywhere
• Increased productivity and efficiency

Price:

Asana offers free and paid plans. The free plan has unlimited projects but limits use to 15 users. Paid plans start from $10,99/user/month.

3. Soho Projects

Zoho Projects boasts as the top choice for simple project management software. It enables users to streamline tasks and projects with a single button click.

Features:

• Efficient file management capabilities
• Gantt chart view
• Single platform for real-time collaboration
• Integration with Zoho CRM and other management tools
• Automatic bug tracker

Key benefits:

• Better task management through data tracking and automation
• Easy navigation and low learning curve
• Accessible through a web browser and mobile app
• Affordable pricing plans

Price:

When it comes to choosing a subscription plan, Zoho provides various options. There is an unlimited free version with basic features and limited users. Zoho’s premium plan costs Rp69.000/user/month, while the enterprise plan costs Rp.138.000/user/month.

4. Slack

Slack is one of the market’s most used project management tools today. The cloud-based software allows teams to communicate, share files, and organize work in real-time. Slack has channels that you can create for different projects or topics. Users can find and work on what is relevant to them.

Features:

• Organized structure suitable for projects
• Automatic reminders for tasks and deadlines
• Streamlined workflow with automation capabilities
• Channels designed for team communication and collaboration
• Unlimited channels for global teamwork
• Comprehensive message archive to replace email communication
• Voice and video calling features for virtual meetings
• Integration with a wide range of third-party tools and services

Key benefits:

• Slack is customizable and provides a tailored experience for businesses
• The application is remote work friendly
• A centralized workspace eliminates separate tools and platforms
• Increase productivity while reducing administrative tasks

Price:

Slack offers four payment plans – free, Pro, Business+, and Enterprise Grid. The Pro plan starts at $7.25/month, while Business+ at $12.50/month. Interested users must contact Slack’s sales team to access the Enterprise Grid plan.

5. Typetalk

TypeTalk is a tool that helps teams and businesses work together in real-time through chat and messaging. The application lets you keep all your team’s messages in one place. Its features make it easy for users to find what they need fast.

Features:

• Threaded messages and tags for easy tracking
• An open API for automation and integration with other software
• Integration capabilities with other Nulab productivity applications

Key benefits:

• Improves communication
• Centralizes communication
• Hearing-impaired friendly
• Remote work support

Price:

The cost of using the application is $6/month for a group of three users. TypeTalk charges more for additional users.

6. Wrike

Wrike is a powerful tool that boosts teamwork and transparency. It has top-quality features for collaboration, communication, and managing documents. You can set priorities and get your team working more efficiently and effectively.

Features:

• Integration with popular tools such as Google Drive, Dropbox, and Microsoft Office
• Time tracking and reporting
• Collaborative tools
• Gantt charts and visual timelines
• Real-time activity stream and notifications

Key benefits:

• Simplifies planning and managing project workflows
• Teams stay informed with updates on project changes
• Make sharing files simpler
• Enhanced collaboration and transparency

Price:

Wrike prices its subscription plan starting from $9.80/user/month.

7. Zapier

Zapier is project management software that connects multiple web applications, allowing users to automate workflows between them. Users create “Zaps,” automatic workflows that do tasks between different apps when something happens in one of them.

Features:

• Real-time integration with multiple web apps
• Customizable filters
• Complex workflow creation
• Data mapping & transformation tools
• Automated scheduling

Key benefits:

• Streamlined workflows that help teams work more efficiently
• Increased agility in creating workflows
• Simplified data management
• Faster response times
• Better team communication

Price:

Zapier’s pricing starts from $19.99/month.

8. Clickup

ClickUp is a popular productivity tool that can help you manage projects and time more effectively. With this project management software, you can easily track who is responsible for each job. It brings together all your tasks, projects, and resources in one place. ClickUp places a strong emphasis on enhancing the user experience by utilizing a variety of different views, statuses, features, and processes.

Features:

• Use stages to keep everyone on the same page when working on a project
• Create spaces to organize your work with customizable workflows and tags
• Add time estimates to your tasks so that scheduling happens automatically
• Decide what others can see and do on the platform
• Set goals and track their progress over time

Key benefits:

• Efficient workflow management and coordination
• Enhanced organization and productivity
• Simplified task scheduling
• Controlled access means improved security and privacy
• Better progress tracking

Price:

ClickUp’s Business plan starts at $12/user/month. However, ClickUp also provides a free version with limited features.

9. Redbooth

Redbooth is a user-friendly online software for task and project management that is ideal for teams with hectic schedules. It helps keep your team organized, in sync, and on track all the time.

Features:

• Project management capabilities
• Task delegation
• Mobile application for iOS and Android

Key benefits:

• Increased productivity and organization
• Better workload distribution
• Accessibility and flexibility

Price:

Redbooth offers three different subscription plans – Pro, Business, and Enterprise. The Pro plan starts at $9/user/month, and the Business plan costs $15/user/month. For the Enterprise plan, interested users must contact Redbooth’s sales team.

10. Miro

Miro is an online collaborative whiteboard platform that enables teams to work together in real-time, regardless of their physical location. It offers a range of features that allow users to create and collaborate on digital boards, diagrams, charts, and maps, among other things.

Features:

• Customizable digital whiteboard
• Collaboration and design tools
• Interactive sessions with collaborators
• Integration with third-party tools
• Wide range of templates to use

Key benefits:

• Enhanced productivity
• Better organization
• Improved collaboration and team creativity
• Opportunities for remote work

Price:

Miro offers a free version with three customizable boards, unlimited users, and core integrations with applications like Slack, Microsoft Teams, and Dropbox. You can try the premium package for more features, which costs $8/user/month.

Read more: Indonesia’s Top 20 CRM Applications & How to Choose Them

11. Clarizen

Clarizen is a cloud-based project management software that can assist your business with project management. It is a convenient solution that allows you to easily manage projects and connect with team members.

Features:

• User-friendly interface with flexibility in design
• Workflow automation
• Budget tracking capabilities

Key benefits:

• Increased productivity and workflow efficiency
• Better financial control
• High user adoption and satisfaction with its flexible interface
• Enhanced collaboration and communications

Price:

Clarizen costs from $60/user/month.

12. Airtable

Airtable is an easy-to-use tool for managing tasks and planning projects. The application combines the best features of spreadsheets and databases. Users can view data in formats like Kanban, list, and Calendar.

Features:

• Task and management tracking
• Various formats to view data and tasks
• Pre-made templates
• Integration with third-party plugins
• Intelligent filtering

Key benefits:

• Efficient tracking of tasks and management of projects
• Customizable ways to view and organize data and tasks
• Quick and easy setup with pre-made templates
• Enhanced functionality through integration with third-party plugins
• Improved data analysis and decision-making through intelligent filtering

Price:

Airtable has a free version in addition to their paid plans that start at $10/user/month.

13. Kanban Tool

Kanban Tool is a great entry point into project management software. It helps you see your workflow and track time efficiently. You can work together with others and keep track of tasks using notifications and reports. It has features like document sharing, reporting, a mobile app, and more.

Features:

• Kanban board for workflow visualization
• Task management
• Customizable workflows

Key benefits:

• Improved project management efficiency
• Streamlined workflows
• Enhanced visibility and transparency of project progress
• Faster identification and resolution of project issues and bottlenecks

Price:

Kanban Tool has a free plan for up to two users with two project boards. Their paid plans start at $5/user/month with unlimited boards. Enterprises can opt for the $9/user/month plan with advanced features like time-tracking and automation.

14. Zenkit

Zenkit is a project management software that helps teams work together efficiently. It offers a range of valuable features, like different ways to view and manage data, reports, and resource management tools. Zenkit works well for both agile teams and traditional project management methods.

Features:

• Task management
• Collaboration tools
• Kanban boards and Gantt charts
• File sharing
• Activity tracking

Key benefits:

• Efficient task management with customizable views and resource management tools
• Easy collaboration
• Enhanced project visualization
• The convenience of file sharing
• Improved progress tracking

Price:

Zenkit has four different plan options. The Personal plan is free; the other three are Plus, Business, and Enterprise. Each program has more features and project support than the one before. For more information, you should check out their price list.

15. MeisterTask

MeisterTask is an online tool for managing projects when working together with others in real-time. It has useful features like a dashboard to track progress, customizable fields, and file sharing. Some users have observed that the system could improve its management of revisions.

Features:

• Activity dashboard
• Visually appealing UI
• Backlog management
• Customizable fields
• File sharing capabilities
• Document management

Key benefits:

• Unlimited projects
• Easy collaboration
• Real-time communication
• Agile workflows
• Simplifies task creation

Price:

MeisterTask’s pricing starts at $6.49/month.

16. Paymo

Paymo is a project management software that helps teams work better by managing tasks, schedules, and time tracking. It brings everyone together and enables you to work faster and better. Paymo works for many different types of teams, such as those in creative fields, marketing, web design, and business consulting.

Features:

• Tools for managing tasks, Gantt charts, and Kanban boards to plan and schedule accurately
• Real-time discussions and comments to collaborate seamlessly
• Compare initial time estimates with actual work done
• Customize time and work reports

Key benefits:

• Accurate planning and scheduling to improve productivity
• Real-time collaboration to enhance teamwork and communication
• Improved time tracking
• Customizable reports to track progress and make data-driven decisions

Price:

Paymo has annual plans that include two free months. The Small Office plan costs $9.95/user/month when you pay for the whole year. The Business plan costs $20.79/user/month with annual billing.

17. Teamwork Projects

Teamwork Projects is a project management software that works well with other tools to make your work more efficient. It has a simple and friendly interface and is easy to use. You can create a project along with tasks and milestones. You can use Teamwork Projects on iOS, Android, Google Chrome, and the web.

Features:

• Set start and end dates for your projects
• View project activity overview to know what your team is doing
• Use Gantt style view to manage your projects
• Get insights into your team’s performance
• Assign tasks with low, medium, or high priorities

Key benefits:

• Improved project planning and organization
• Easy tracking of team progress and project status
• Clear visualization of project timelines and deadlines
• Valuable insights into team performance to identify areas for improvement
• Effective prioritization of tasks

Price:

Teamwork Projects has different plans with different prices. The free version is for up to 5 people with limited capabilities. The Delivery plan costs $9.99/user/month with annual billing. The Grow plan costs $19.99/user/month if you pay for a whole year.

18. Monday.com

Monday.com is a software tool that helps people manage their work, meet deadlines, and collaborate effectively. The purpose of this tool is to ease communication and keep everyone informed about the progress of various projects. With Monday.com, teams can track progress and assign tasks, making working collaboratively easier and achieving shared goals.

Features:

• Communication and document management in one central location
• Project management and tracking with visual displays
• Effective analytics and reporting
• Integration with Dropbox, Zapier, Google Drive, and similar tools for easy sharing and management

Key benefits:

• Streamlined communication and document management for greater efficiency
• Transparent visual displays of project progress and status for better tracking and organization
• Comprehensive analytics and reporting capabilities for better insights and decision-making
• Easy integration with other popular tools for seamless collaboration and workflow management

Price:

Monday.com provides a free trial for interested users. The Basic plan is $25/month, with annual billing.

19. Proofhub

ProofHub is project management software with a centralized workspace for tasks, workflows, and documents. It helps you plan and organize your team’s work and collaborate with members and clients. ProofHub offers workload and resource reports to track progress. Despite limited integrations and task management, it is easy to use and suitable for freelancers and businesses of all sizes.

Features:

• Centralized platform
• Project creation & organization
• Multiple task displays
• Internal communication tools
• File management system

Key benefits:

• Centralized tools lead to a more efficient project management
• Simplifies creating and organizing projects
• Better task management
• Accessible up-to-date information
• Simplifies file sharing

Price:

ProofHub has two plans that offer unlimited user access for a fixed fee. The Essential plan costs $50/month, and the Ultimate Control plan costs $99/month.

20. Workzone

A dedicated team creates this project management software to help people and organizations manage their work more effectively. With Workzone, users have a central location to collect and share their work, allowing everyone to stay informed and up-to-date. Workzone enhances work organization by providing improved control, visibility, collaboration, and the ability to reach shared goals.

Features:

• Keep everyone updated with reports of upcoming tasks
• Communicate faster and more efficiently
• Create assignments, to-do lists, and share files easily to improve collaboration
• Set different levels of user permissions, including for clients

Key benefits:

• Improved task management
• Faster and more efficient communication
• Enhanced collaboration through file sharing
• Better security for project access

Price:

Workzone pricing plans start at $24/user/month.

21. Hubspot

HubSpot is an all-in-one CRM that combines marketing, sales, support, and project management. Their free Marketing Hub has a Projects feature for a centralized task and communication management, with templates and real-time updates. Your team can access all customer data when using Hubspot.

Features:

• Boards for collaborative work
• Ready-to-use project templates
• Synchronized customer database
• A ticket-based task assignment system
• Comprehensive dashboard analytics

Key benefits:

• Increased inter-departmental collaboration and communication
• Streamlined project management process
• Enhanced customer data management through a synchronized database

Price:

Hubspot offers a pricing plan starting at $45/month.

22. nTask

nTask is a new project management tool currently in its early stages of development. It continues to evolve, adding new features and AI capabilities as it matures. Its user-friendly design and ease of use make it a popular choice for start-ups, solopreneurs, and enterprises.

Features:

• Task and project management
• Risk management
• Issue management
• Time management
• Resource management
• Meeting management

Key benefits:

• Streamlined project management
• Efficient resource allocation and budget management
• Increased project visibility and control
• Improved risk assessment
• Organized meetings with clear agendas and follow-up actions

Price:

Pricing for nTask starts at $3/user/month.

Read more: 21 Best Cashier App Recommendations for Business in 2023

7 criteria for choosing a project management software

Still unsure which project management app to choose from our list? Consider other factors to help you decide. The following seven criteria can help you select the best software for your team:

Task management

Look for software for easy task creation, management, and delegation. The software should include features such as task prioritization, deadlines, and progress tracking.

Kanban board

Choose software that offers a Kanban board feature for visualizing your project progress and organizing your workflow. The simple layout of Kanban boards, which consists of boards and cards, enables every team member to keep track of their tasks and monitor the team’s progress together.

To-do-list

Your project management software must be able to create and manage a work plan. It is even better if the software you use can keep this list in a centralized location accessible by all team members.

Collaboration

Choose software with collaboration tools like messaging, file sharing, and member mentions for better teamwork. These tools should be uncomplicated and enable real-time communication, keeping everyone on the same page and boosting productivity.

Integration

Ensure maximum efficiency for your team by selecting a project management software that seamlessly integrates with their daily tools, such as Google Drive. You must prioritize accessible integration features for a hassle-free setup and a smooth user experience.

Detailed reporting

Do not settle for just any project management software. Go for one that offers in-depth reporting and analytics features. With these tools, you can keep track of project progress, monitor team performance, and spot potential roadblocks before they become significant issues.

Time tracker

Lastly, ensure your chosen software has a time-tracking feature. This tool makes it easier to keep track of the time spent on each task. Moreover, it can help with managing resources and billing.

Read more: The 9 Best Grocery Store POS System to Boost Sales in 2023

Conclusion

There is a plethora of project management software available for you to choose from. It is essential to understand that there is no one-size-fits-all solution. The best software for your team depends on several factors.

Consider the size of your team, the type of projects you manage, and your budget before deciding. Additionally, remember the seven criteria we outlined:

• Task management
• Kanban board
• To-do list
• Collaboration
• Integration
• Detailed reporting
• Time tracker

Using project management software that suits your needs can help you enhance your work process, boost productivity, and effectively meet project deadlines and budget constraints.

As a business owner, you understand that customers keep your company going. Ensuring they are satisfied and interested is vital for keeping your profits healthy.

That is where Customer Relationship Management (CRM) comes into play. A CRM system is a powerful tool that helps you manage customer interactions and ensure they are happy with your business.

However,  just having a CRM system in place is not enough. To get the most out of your CRM system, you must know the basic processes that make it work efficiently.

In this article, we will explore three essential CRM processes. These processes can help you better understand your customers, streamline your operations, and ultimately increase your revenue and profitability.

What is CRM?

Customer Relationship Management (CRM) is a business strategy that brings together people, processes, and technology. It is all about how you interact with your customers, like making sales, helping them out when they have questions or problems, and figuring out what they like and don’t like about your business.

Businesses nowadays widely use CRM technology in their operations. The growth rate of the CRM industry surpasses that of any other type of business software currently. The industry is worth more than $40 billion, according to estimates.

The 3 CRM processes in business

When running a business, keeping your customers happy is critical. CRM helps acquire new customers, improve their satisfaction, and retain them.

These processes are called Acquire, Enhance, and Retain.

To guarantee the success of your enterprise, it is imperative that you fully grasp these three procedures and devise potent tactics for each of them.

1. Obtain new customers (acquire)

The acquisition phase involves identifying and attracting new customers dependent on  skilled salespeople who can create a positive first impression. You do not want your customers feels hesitate to use your products or services.

So when your business is trying to gain new customers, you should always provide them with comfort. You and your team must communicate well with them.

When a business makes a great first impression on its customers, it demonstrates that it is trustworthy and a dependable brand. Customers will be willing to spread positive reviews, leading to more customers flocking in.

2. Add customer value (enhance)

When running a business, making the customer’s experience convenient is essential. There are two actions that companies can take to increase customer satisfaction and sales: up-selling and cross-selling.

Up-selling involves suggesting an upgraded version of the product the customer is interested in. On the other hand, cross-selling offers customers different products that go well with what they have already bought.

3. Retain customers (retain)

Retaining customers should be a goal for every business. Achieving long-term success requires prioritizing customer satisfaction. However, it is a more challenging process compared to acquiring new customers.

How a business retains customers can be done in various ways. They can do this by giving excellent customer service, personalized offers, and staying in touch.

When companies listen to customer feedback and help them out, it shows they care and want them to be happy. Keeping customers happy and coming back is vital for any business. It can help increase profits and improve the company’s image.

Steps to creating a comprehensive CRM system

We have compiled a set of five steps to assist you in developing a robust CRM system. These steps consider your company’s objectives, business strategy, customer communication, data analysis, and system selection.

Determine company vision & goals

Once you have identified your goals, creating a comprehensive strategy for your CRM system is crucial. This plan must cover the following aspects without fail:

• Identifying the crucial stakeholders
• Determining the budget
• Defining the scope of the system
• Establishing an implementation timeline

You must pay close attention to these steps to ensure the success of your CRM system. You cannot overlook them. Ensure you have a solid plan before proceeding with the implementation.

Improve customer communication

To truly maximize your CRM system, it is imperative that you possess accurate and up-to-date information about your clientele. You can collect this information through the following methods:

• Surveys and feedback forms
• Social media monitoring
• Customer interviews
• Customer support interactions
• Website analytics

Doing so can enhance customer communication and ensure that your CRM system effectively meets your business needs.

Check and evaluate existing business data

Regularly analyzing your business data is crucial for ensuring the accuracy and usefulness of your CRM system. You can research and report your data to pinpoint patterns, trends, and areas for improvement. Analyzing your data can help you make better decisions that align with your business goals and improve the efficiency of your CRM system.

Choose the right CRM system

Lastly, you must be able to select the most appropriate CRM system for your business, e.g Impact CRM. To choose the right system, you have to research various options, compare their features and prices, and select the one that matches the company’s objectives and vision.

The chosen software should be user-friendly, adaptable, and scalable. It should provide the necessary tools to manage customer interactions efficiently.

Read more: Indonesia’s Top 20 CRM Applications & How to Choose Them

Conclusion

If you own a business, keeping your customers happy is essential. A CRM system is a tool that can help you do this.

However, having a CRM system is not enough. You need to know how it works to get the most out of it. There are three essential things to know: Acquire, Enhance, and Retain.

Using these processes, you can understand your customers better, make things easier for your business, and make more money. It is important to remember that your customers keep your business going, and using a sound CRM system can help you ensure they are happy and keep coming back.

Consider Impact a viable option for managing your customers and company resources with software. It provides integrated Enterprise Resource Planning (ERP) systems designed specifically for Indonesian businesses.

Manage customer relationships effectively with Impact’s CRM tool. Get advanced customer tracking, sales performance, and data-driven insights for streamlined sales and relationship management.

Read more: E-CRM: Definition, 5 Benefits, and How It Differs from CRM

The last chapter explored the essential steps of creating a web startup, using steps from “The Startup Owner’s Manual” by Steve Blank and Bob Dorf. Now, let’s dive into a crucial tool pivotal in your startup journey: the Business Model Canvas.

As your startup progresses through the customer development process, you’ll rely on the Business Model Canvas as your trusty scorecard. It’s your guide, helping you track and refine your business hypotheses for each critical component.

In this article, we aim to explain the Business Model Canvas. We’ll break it down into nine key components, giving you a clear understanding of how this canvas can be your compass on the path to startup success. 

Read more: Building a Company: 4-Step Customer Development Guide

What is a business model canvas?

A business model is like a roadmap that shows how a company creates, delivers, and makes money from its products or services. But sometimes, it’s tough for everyone in a company to understand this roadmap clearly.

That’s where the Business Model Canvas comes in. It’s a handy tool developed by Alexander Osterwalder that helps you figure out how your company will make money. Think of it as a strategic tool for startups. It enables you to plan, adapt, and change your business idea.

Unlike a typical company chart that shows how things work inside, the Business Model Canvas is more like a treasure map. It helps you explore the unknowns that many startups face. There are nine boxes on the canvas, each representing a crucial part of your business idea. (We will explain each component later on in this article).

1. Value Propositions
2. Customer Segments
3. Channels
4. Customer Relationships
5. Revenue Streams
6. Key Resources
7. Key Activities
8. Key Partners
9. Cost Structure

As your startup goes through the customer development process, the Business Model Canvas becomes your scorecard. You put your ideas about each part of your business model on it. 

Then, as you learn more from your customers, you update those ideas. It’s like starting with a map of where you think the treasure is, and then, as you explore, you adjust your course based on what you find.

Read more: Customer Development Process: 4-Step Framework for Startups

Benefits of using a business model canvas

By leveraging the Business Model Canvas, you can unlock numerous benefits that pave the way for a more structured, adaptable, and successful startup journey. Here are some benefits that you can gain when using this strategic tool:

Focuses on key strategic elements

The Business Model Canvas is like a blueprint for your business. It breaks down the essential parts of your business into clear blocks. These blocks help you see how everything fits together.

Using the Business Model Canvas, you can organize your business thoughts neatly. It ensures that you don’t miss anything important. Plus, it shows how different parts of your business connect.

Simply put, it’s a tool that helps you create a clear plan for your business. It makes you think deeply about each part, ensuring your strategy is well-defined.

Promotes iterative development

The Business Model Canvas is like a flexible blueprint for your startup. It lets you begin with your ideas, even if they are only assumptions. You can improve your plan as you learn more and get feedback. It’s all about making your business better bit by bit.

This canvas not only simplifies and streamlines but also accelerates the development of your business strategies. Think of it like a rough sketch that you refine over time as your business vision evolves. The canvas encourages a flexible mindset where you plan, check, and make changes as needed.

Imagine the Business Model Canvas as a set of educated guesses. You need to check for these guesses by talking to real customers. Why? Because as your business grows and gets more customers, your plan will need to change. So, the canvas is like a fluid tool that moves and adapts to your business journey.

Reduces the risk of failure

By mapping your ideas on the canvas early on, you can quickly identify any potential risks and assumptions that may arise. It’s similar to spotting potholes on the road before driving into them.

The Business Model Canvas serves as a helpful guide for taking your idea to the market. It connects your value, target audience, and revenue generation strategy. This information is crucial for developing your marketing, positioning, and sales plans. Additionally, it’s faster and more efficient than creating a lengthy business plan, providing you with a competitive advantage.

It’s customer-centric

The canvas highlights a crucial factor for startup success: knowing what your customers want and what issues they face. This understanding is essential because it guides your decisions and actions. 

When you know your customers’ needs and problems, you can effectively tailor your products or services to meet those demands. It increases your chances of success and helps you create a more meaningful and valuable solution for your target audience. So, remember that understanding your customers is a fundamental step toward a successful startup.

Also read: Hooked by Nir Eyal: 10 Key Insights for Habit-Forming Products

The 9 critical components of a business model canvas

Now that we’ve grasped the essence of the Business Model Canvas, let’s delve deeper into its nine critical components in more detail. These components are the building blocks of your business strategy, each playing a unique and essential role in shaping your startup’s success.

1. Value proposition

The value proposition is the core of your startup. It’s what makes your business stand out and provides solutions to your customers’ problems. It answers the question, “Who are you creating your startup for?” Simply, it’s about solving your customers’ problems and meeting their needs.

Customers aren’t interested in your fancy technology or all your cool features. What matters to them is how you can make their lives easier or better. In this part of the Business Model Canvas, you should define how your product or service benefits your customers. Think of it as a list of how your startup will solve their problems and fulfill their needs. That’s what the value proposition is all about.

2. Customer segments

Who are your customers, and why do they buy from you? In this part of the Business Model Canvas, you group your customers based on similarities like age, gender, interests, and spending habits. 

Identifying these customer groups is crucial. You must understand their needs, behaviors, and unique traits to create customer personas. Startups often have multiple customer segments, each requiring a tailored approach. Always remember that your company’s purpose is to cater to the needs of its customers, not the other way around.

3. Distribution channels

Distribution channels are the paths your product takes to reach your customers. Think of them as the routes to deliver what you’re selling. These channels are part of your marketing plan. Picking the right ones ensures your product gets to the right people.

Today, there are various methods to deliver your product to reach customers. Here are a few: Search Engine Marketing (SEM), Search Engine Optimization (SEO), content marketing, traditional ads, and working with blogs that match your target audience.

Read more: Unlocking Growth: 19 Traction Channels for Business Success

4. Customer relationships

The customer relationships part of the Business Model Canvas is about how you connect with your customers, make them stay, and buy more from you. Imagine it as a two-sided funnel.

1. Getting Customers In: This is about how you attract and reach out to potential customers. It’s the part where you get their attention and interest them in what you offer.
2. Keeping Them as Customers: After they’ve made a purchase, how do you ensure their satisfaction and motivate them to return for more? This is the stage where you establish and nurture trust and loyalty.
3. Growing Over Time: This means finding ways to sell more to your existing customers. It could be through upselling (offering them more expensive products), cross-selling (selling related products), or simply encouraging them to buy from you regularly.

Also read: Improving CRM Efficiency: 3 CRM Processes You Need to Know

5. Revenue streams

The revenue streams component is about how your business earns money by selling your product or service to customers. It’s about figuring out what customers are willing to pay for and how to get them to pay. Knowing your revenue streams is crucial for your business to survive and grow.

It’s also essential to set the right price for your offering. You need to consider how much customers are willing to spend compared to the problem your product or service solves. You can use various pricing models, such as direct sales, subscription, or freemium (giving basic services for free and charging for premium features).

6. Key resources

The resources component of the Business Model Canvas deals with what your startup needs to get things done. It’s about the essential assets your business relies on to offer its products or services and run smoothly. These assets could be financial, physical (machines, vehicles), technological (software), intellectual (like patents), and your team. 

7. Key partners

The key partners component is about whom you need to work with from external companies or suppliers to make your business work. These partners help you do the essential tasks and provide what you need to make your customers happy.

It’s important to consider what your partners will contribute and when they will do it. Your business may require assistance from others, and understanding their role is crucial.

Many startups think they must partner with other companies immediately because big companies do it. However, partnering in your first year differs from when your startup has grown into a mature company. So, think carefully about when and who to partner with.

8. Key activities

The key activities in your business or product are your actions to make your customers happy. This part of the Business Model Canvas is all about the essential tasks your startup must do to provide value to customers. It includes everyday jobs and big strategic moves that help your business grow. To make your business work, focus on these actions. 

9. Cost structure

In the Business Model Canvas, all the components come together to form the cost structure. This part represents the money you need to run your business.

Your cost structure includes two main types of expenses:

1. Fixed Costs: These expenses stay the same no matter how much you produce or sell. Examples include rent and salaries.
2. Variable Costs: These expenses change based on how much you produce or sell. They can include production costs and marketing expenses.

Understanding your cost structure is crucial for effective financial management and ensuring the profitability of your business. Here are key aspects to consider:

1. The cost of essential activities within your business.
2. Expenses related to your critical resources and partnerships.
3. The expenses tied to delivering value to your customers or users.
4. Additional costs, such as legal fees and insurance.
5. Your personal cost — ponder the value of your time. What would it cost if you needed to hire someone to do your job?

When running your business, it’s crucial to consider the opportunity cost. Consider the potential earnings you might have had if you were doing something else instead. By understanding all these costs, you can make informed financial decisions for your startup.

Summary

The Business Model Canvas is an invaluable tool for startups on their journey to success. It provides a clear and concise roadmap, allowing companies to visualize how they create, deliver, and monetize their products or services. Its nine essential components serve as a strategic companion, helping entrepreneurs adapt and refine their business ideas as they navigate the often uncharted waters of the market.

As we conclude our startup guide, remember that the journey doesn’t end here. The Business Model Canvas is not just a one-time map; it’s a dynamic tool that evolves with your startup’s growth. Continuously update your canvas based on the insights gained from your customers, much like adjusting your course while on a treasure hunt. 

With dedication, adaptability, and a well-mapped strategy, your startup is poised for success. Embrace the adventure, stay agile, and keep refining your business model to unlock the treasures of entrepreneurship. 

References

Blank, Steve, and Bob Dorf. The Startup Owner’s Manual: The Step-By-Step Guide for Building a Great Company. 2020.

Companies are always searching for new ways to set themselves apart as the business world becomes increasingly competitive. With the rise of technology, it is clear that Electronic Customer Relationship Management (E-CRM) is the way of the future.

What is E-CRM exactly? It is a solution that leverages digital channels to manage customer interactions.

This article will examine what this solution is, how it works, and why it is essential for businesses today. We will also explore its benefits and factors for implementing this system.

Understanding this application will help you develop stronger client interactions regardless of how big or tiny your business is. Long-term success as a result of this can be enormous.

What is E-CRM?

E-CRM is a method of managing customers using digital technology. It can include emails, websites, chat rooms, and forums to achieve CRM goals.

This solution is not only software. It combines software, hardware, and the commitment to support the strategy to achieve business goals.

Its is growing in various business fields. It improves consumer interactions and helps businesses select products and services that meet client needs.

Why is E-CRM important for businesses?

To enhance client relations, E-CRM makes use of technology. For the following reasons, this application is crucial for businesses:

Changes in consumer behavior

In today’s digital era, customer expectations for business interactions are increasing. Customers expect a seamless, personalized, and comfortable experience interacting with businesses. Companies must utilize E-CRM to be able to meet customer demands adequately.

Efficiency & automation

E-CRM streamlines corporate operations. The system automates lead management, sales monitoring, and customer service. With this system in place, manual tasks will be minimal.

Business insights

Data is valuable in business today. E-CRM simplifies the collection, storage, and analysis of customer data. Companies can leverage this data for improved operations by gaining insights into customer behavior.

Scalability

E-CRMs are flexible systems that meet changing requirements and an expanding client base. It aids businesses in maintaining customer focus while growing and managing client relationships effectively.

Global reach

E-CRM uses digital platforms to expand global reach and surpass spatial customer limits. It creates options for the expansion and growth of the worldwide market.

Differences between CRM and E-CRM

In this high-tech era, the Internet has transformed almost every aspect of our lives. With the rise of E-CRM, the traditional approach of CRM has been replaced.

As a result, this application has significantly impacted business growth. Therefore, you must know the differences between these two approaches.

CRM involves manual processes or legacy systems for managing customer interactions. E-CRM is a step ahead of that. It is the adaptation of a CRM using the Internet; all contacts are online.

Here we have compiled the differences between the two using the table below.

Features of E-CRM

Electronic Customer Relationship Management uses digital technologies to manage and optimize customer interactions. Here are some key features of the system:

Automation tools

Automation tools are integral to E-CRM systems and can significantly improve efficiency in managing customer relationships.

E-CRM can automate the following:

• Workflow
• Marketing & Social Media
• Customer service
• Chatbots & Virtual Assistants

This tool helps you save time and improve accuracy. However, you need to balance its use for a personalized CRM approach.

Customer data management

An essential element of E-CRM is customer data management. It enables commercial businesses to gather and arrange client data in one place. With the data available, companies can communicate effectively with clients. Additionally, it aids in tailoring services to meet individual customer needs.

Customization features

E-CRM systems are highly customizable. You can modify the system to match your company’s requirements. This adaptability offers a more individualized method of managing consumer interactions.

Reporting & analytics

E-CRM offers customizable reporting options, enabling businesses to identify successful and ineffective actions. These records provide valuable insights that can help companies make data-driven decisions. Furthermore, it can also assist in improving overall business strategies.

Customer support

E-CRM empowers businesses to gain a competitive edge by always offering customer service and support. Companies can proactively increase engagement and promptly address concerns by remaining available to customers.

Multichannel integration

E-CRM integrates multiple communication channels to interact with customers, such as email, social media, chatbots, and mobile apps. This feature enables seamless and consistent customer engagement across preferred channels.

Benefits of E-CRM for businesses

By implementing an E-CRM system, businesses can reap multiple advantages due its various features. Here are five of them:

Improves customer service quality

With this system, your business can effortlessly manage customer inquiries, complaints, and feedback through electronic channels. This technology allows faster response times, personalized interactions, and consistent service delivery. As a result, your customers enjoy a better service experience that keeps them returning for more.

Increase customer satisfaction

When customers are happy, they become loyal to the brand. You can achieve this with E-CRM. The technology allows you to gain valuable insights into their preferences and interactions. Leveraging this information, can help you to create personalized and tailored communications to customers.

Increases productivity

E-CRM streamlines routine tasks like data entry, tracking customer interactions, and generating reports. You would not have to worry about inputting data manually. As a result, your operations can focus on other complex issues, leading to higher efficiency and productivity levels.

Increases revenue

If you are looking for a strategy that boosts sales and profits, E-CRM can be the solution. The technology helps identify and target potential customers accurately. You can also track customer habits closely. It enables data-driven decisions, drives growth, and fosters unparalleled success in today’s dynamic market.

Maximizes remote work opportunities

Implementing this system in your company opens up customer service to work remotely. Your business can save operational costs as your team is not in the office full-time. It also opens you up to utilize a global talent pool.

Key considerations for implementing an E-CRM

If you are thinking about implementing an E-CRM system for your business, there are some important factors to consider. The system’s success increases when these factors come into play.

Your business objectives

You must first define your objectives for using an E-CRM system. What do you want to achieve? Is it to improve customer service, increase sales, or streamline business processes?

Understanding your business objectives will help you align your implementation with your overall business strategy. If your goals do not align, the implementation will cause difficulty in achieving your desired outcomes.

Your existing systems

Revamping your current infrastructure may be necessary when implementing an E-CRM system. It would be best to ask your team whether introducing new technology will disrupt current processes. Ignoring this can lead to employee resistance, inefficiencies, and suboptimal results.

Your overall workflow

Implementing an E-CRM system can result in significant transformations affecting multiple business areas. The process may require an overhaul of your current work processes. You must consider the implications, plan for process changes, provide employee training, and gain buy-in.

The right technology to use

Selecting the right technology is crucial for a successful implementation. You must choose a system that aligns with your business requirements and meets current and future needs. Thoroughly evaluate scalability, customization, ease of use, integration, security, and support options.

Conclusion

Electronic Customer Relationship Management is a robust solution to manage customer interactions effectively using digital channels. Its implementation can lead to stronger client interactions and long-term success, regardless of business size.

If you want a CRM solution with online capabilities, consider Impact. Experience the power of a fully-integrated Enterprise Resource Planning (ERP) system with Impact, designed for Indonesian businesses.

Impact’s CRM tool seamlessly connects with essential modules, such as sales, purchasing, and omnichannel – simplifying your workflow.

Unlock your full potential in managing customer relationships with Impact’s CRM tool. Enjoy advanced customer tracking, improved sales performance, and data-driven insights for efficient sales and relationship management.