There are certain things a business can never get enough of, but of all of them, the most important is revenue growth. A business not generating revenue consistently is bound for a shutdown which has been the case of so many companies and businesses in the last quarter. Now is the time to review your sales process, every step that comes with and optimize it for the reality of times we are in.
However, beyond your sales process, you need to evaluate and optimize the performance of your revenue frontliners – the sales people who drive the actual sales process. To achieve this, you need defined metrics.
But before we move along, let’s look into what sales metrics are;
What Are Sales Metrics?
According to Hubspot, Sales metrics are data points that represent your sales performance either as a team, individual, or organization. They represent what your business targets are and how you intend to be strategic about achieving them.
Why You Need A Sales Metric?
Selling is a process that has a lot of ambiguity, you need anything that helps simplify the process. Having a sales metric in place helps your sales team know exactly what they should be focusing their efforts on by setting a clear path forward.
WANT TO GET THE MOST OUT OF YOUR SALES PROCESS?
Join our newsletter. We send tailored insights and tips on how to get the best out of your sales process and how to consistently hit your revenue projections.
It’s also important to utilize sales metrics as they help tidy the efforts & activities of each of your sales reps.
Let’s assume you have a sales rep who effortlessly generates multiple qualified outbound leads but never goes beyond the first contact in the sales process, you as a sales manager or leader need to look into the quality of conversations such a rep is having with prospects.
Here we have a pop up that talks about signing up to our newsletter
Now let’s look at the most important metrics you should be evaluating your team with right now:
5 Sales Performance Metrics You Need Right Now.
Sales metrics can be likened to a pyramid. At the foundation is the leads, the quality of the leads generated form the very foundation for what your sales funnel will look like.
The number of leads you get each month determines how many customers you get in your pipeline. Depending on your business model and industry, you can set what realistic leads metric goal is ideal for your team.
Emails & Calls Volume:
How many cold calls did you make? How many cold emails did you send? How many storefronts did you visit? AlthoughKnowing your sales team activity will help you track how their time is being invested and provide a foundation for knowing how much quality conversation they are having.
Number of Meetings/Presentations Booked:
If your sales team are engaging the right people the right way, they are bound to be having multiple demos/presentations which is an excellent sign that a warm lead is highly interested in what you and your company has to offer. Measuring the number of demonstrations that your agents deliver will help you to figure out exactly how many possible leads are turning into customers. This will give you a much better idea on the health of your sales pipeline
This is one of the most important metrics you need in measuring the performance of your sales team. It ultimately demonstrates how effective they are in turning prospects into paying customers. A low close rate can tell a lot of things:
- Maybe your USP isn’t well defined?
- Maybe your reps need training?
- Maybe your team are nor properly qualifying leads.
Regardless, a low close rate is a huge red flag that needs to be addressed immediately if you want to meet your revenue targets this quarter.
This is perhaps the number one sales activity metric. No matter what, you have to remember you’re driving towards a revenue goal putting in mind what necessary activity is necessary to achieve such.
It is also important to set realistic revenue quota for your sales team depending on what industry you are in and what your average deal size is like.
By finding and improving these weak points, you can dramatically improve results. To learn more about remote selling KPIs, check out our article on it.
These are uncertain times, you need to use the right metrics that ensure you’re driving the right activities that are highly optimized. Depending on the feedback you’re getting, you can easily optimize your process around it