You're in charge of business development. How do you make sure you're tracking the right metrics?

3 Customer retention rate

While acquiring new customers is important, retaining existing customers is equally or even more important for business development. Customer retention rate (CRR) is the percentage of customers that stay with you over a given period of time, such as a month, a quarter, or a year. CRR reflects how satisfied and loyal your customers are, and how well you are delivering on your value proposition. A high CRR means that you are creating long-term relationships and reducing churn, which can have a significant impact on your revenue and profitability.

4 Customer satisfaction score

One of the ways to measure and improve your customer retention rate is to track your customer satisfaction score (CSAT). This is a simple metric that asks your customers to rate their satisfaction with your product or service on a scale of 1 to 5, or 1 to 10. CSAT gives you a quick and easy feedback on how happy your customers are, and what areas you need to improve on. You can also segment your CSAT by different criteria, such as product features, customer segments, or channels, to identify specific pain points or opportunities.

5 Referral rate

Another way to measure and boost your customer retention rate is to track your referral rate. This is the percentage of customers that recommend your product or service to others, either through word-of-mouth, social media, or other channels. Referral rate indicates how much trust and advocacy you have built with your customers, and how much organic growth you can generate from them. Referrals are one of the most effective and cost-efficient ways to acquire new customers, as they have higher conversion rates and lower CAC than other sources.

6 Pipeline velocity

The last metric that we'll discuss for business development is pipeline velocity. This is the speed at which your leads move through your sales funnel, from the first contact to the final purchase. Pipeline velocity measures how efficient and productive your business development team is, and how well you are managing your sales cycle. You can increase your pipeline velocity by improving your lead quality, qualification, and nurturing, as well as by optimizing your sales process, tools, and techniques.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?