This paper examines how Cincom Systems, a global enterprise software company, applies metrics and key performance indicators (KPIs) to measure continuous improvement in its Customer Relationship Management (CRM) strategy. The paper analyzes how Cincom establishes performance baselines through benchmarking, conducts time-series analysis across five core business divisions, and uses ROI measures to evaluate marketing program effectiveness. It also discusses the company's integration of Six Sigma and Total Quality Management (TQM) frameworks to streamline marketing and sales initiatives, reduce inefficiencies, and improve overall profitability over time.
The use of metrics and key performance indicators (KPIs) to measure progress in meeting and exceeding continuous improvement objectives for Customer Relationship Management (CRM) is commonplace in many industries. The continuous improvement goals and objectives for CRM strategies at Cincom Systems are multifaceted, concentrating on measuring improvements in prospecting, selling, and service strategies over time. Cincom uses a benchmarking methodology to create a baseline of performance, and then continually measures performance gains across five core business units.
Cincom Systems is a 43-year-old enterprise software company with approximately 700 employees globally. It holds a leadership position in the aerospace and defense, complex manufacturing, and outsourcing industries. The metrics and KPIs the company uses to measure continuous improvement in its CRM systems include customer retention rates, sales cycle performance, cost of sales, improvements in marketing and selling strategy performance, and upsell/cross-sell performance across all software suites.
All of these metrics are reported on a monthly basis and are often integrated into an overarching reporting system that ties results back to the upper-funnel sales analysis tools the company uses. The intent is to connect all of these continuous improvement objectives to website traffic, spending on direct mail, participation in trade shows, and investments in online marketing programs — including extensive content-based marketing programs. All of these factors serve as the basis of a marketing information system used to guide investments in marketing strategies over time.
The benchmarking of CRM system performance is used to set a baseline across the five divisions. With the baseline established, the analytics and metrics described above are used to initiate a time-series analysis of marketing performance. Based on these time series, decisions regarding specific business unit marketing strategies, pricing, product introduction, and the development of entirely new products are defined.
The Return on Investment (ROI) of spending on marketing programs by division can then be assessed. As economic uncertainty has made companies more cautious about investing heavily in marketing programs, many are relying on ROI measures of performance to gain greater insights into company-wide performance (Schneider, 2004).
"Quality frameworks applied to streamline marketing"
Cincom Systems illustrates how a mature enterprise software company can systematically apply CRM metrics, benchmarking, and quality management frameworks to achieve lean, accurate, and profitable marketing execution over time. By integrating KPIs, time-series analysis, ROI measurement, and Six Sigma principles into a unified continuous improvement strategy, Cincom demonstrates a comprehensive model for managing CRM performance across multiple business divisions.
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