Table of Contents
- What are the most important sales metrics?
- 3 Types of sales team performance metrics
- 9 Best Sales Metrics
- Your Arguments and the answers
- Which Sales Metrics do you measure?
There can be more than 300 different variations of key Sales Metrics which are measured by Sales Manager across the globe. But are these metrics effective? Does measuring them help us in achieving the desired sales results?
This brings us to another question. Are all the numbers in the sales measurable and manageable? Can we manage everything in Sales?
Note: Here when we say Sales Managers we include Small Business owners themselves, as they are acting as Sales Managers in their organization.
For simplicity, let us divide all the metrics into three categories [based on Cracking the Sales management code Book by Jason Jordon]
- Business Results
- Sales Objectives
- Sales Activities.
Out of these three, you can only manage or control Sales activities. Business results and sales objectives are the results of Here is an interesting article which compares Sales Management and Bhagwat Geeta.
What are the most important sales metrics?
Most of the Sales Managers like to measure Target’s v/s achieved metrics on a daily basis. Also many times people like to monitor lots of colorful charts and graphs on their monitors which depict various complex statistics about the Sales process.
Here are a few tips that will help you
- Correct data is important than comprehensive and complex reports.
- Never imitate. Metrics which are good for a big enterprise are not necessarily good for you.
- Use your common sense. Don’t just go by books and consultants.
- Focus on activities that bring results and not the results.
- Measure things that show that your Sales Activities are in line with your Sales Objectives
It seems like common sense that we should measure the Sales Activity metrics and not business results, Then, why do Sales leaders and Business Owners only try to measure business performance (end result)?
There are two reasons for it (a) They don’t have proper tools to collect sales activity metrics. (b) it’s easy to discuss results rather than to indulge into details and make hands dirty.
3 Types of sales team performance metrics
Common Sales Metrics which people measure to manage their sales cycle can be broadly classified into three categories as follows:
1.Sales performance metrics or Sales Pipeline Management metrics
- Target v/s Achieved.
- BBC – Booked, Billed and Cash collected.
- Sales Funnel
- Sales Revenue
2.Salesforce effectiveness metrics
- Average Deal size.
- Win Rate
- Customer churn
- Average Sales
- Conversion rate
3.Sales rep productivity metrics
Generally, Sales and marketing metrics need to be measured together. Lead Generation to Sales is the complete lifecycle of the Sales and marketing team.
Check first things first (Follow principles of Ayurvedic Nadi Parikshan). Where the doctor does not require lengthy and complex pathology reports but still detection is right most of the time.
9 Best Sales Metrics
Here are 9 key performance metrics that you need to include in your day to day monitoring. Along with each metrics we have also given reasons why these metrics are to be measure on a regular basis.
Also, note that these are in the order of their priority. E.g.: the first metric is most important.
- Next-Follow up Date
- 78% of sales are lost due to a lack of proper follow-up.
- Two factors – timely follow up and the content of follow up.
- If the next follow update is correct then it means that prima facie the team is functioning in a disciplined way. The 1st factor is working.
- Stage/Status of Leads and Opportunities
- You can determine where your intervention is required.
- Also, the quality of work.
- Eg: how much time should an inquiry be in New/Assigned status?
- Expected Close date (for the Deals)
- Helps you get the reliable forecast (maximum possible accurate forecast)
- The number of times it has changed denotes whether this is a ghost entry or a real deal.
- Expected Deal Amount
- This also helps you get the reliable forecast (maximum possible accurate forecast)
- Also, when you monitor the number of times it has changed denotes whether this is a ghost entry or a real deal.
- Calls/Tasks/Visits done
- Show the quantum of activities done.
- For Quality check other fields like NFD, Description, etc
- Check for today, yesterday, last 7 days.
- Description of Enquiries / Deals.
- Identify where handholding or interference is required.
- When seen in combination with dates and amount fields, suggest whether work is done or its a SCAM.
- Gives insights into problems. (Pretenders / Performers)
- Identify training requirements.
- Proper contact details of people
- It helps us in building a database that can be used for Cross-selling and upselling.
- Remarketing is the most ignored opportunity.
- It helps identify between real and ghost entries.
- Call logs converted to contacts.
- Make sure that everyone logs call related to Business.
- These are actual people with whom you are doing business
- How can we ignore them?
- Proper Product category selection
- Helps you get complex reporting about
- Business Unit wise,
- Category wise,
- Vendor wise etc.
- Helps you get complex reporting about
Your Arguments and the answers
- I am already paying my sales team for the job, why do I need to look after them.
- You know that paying the salary alone is not enough. We need to inculcate the culture and process, which requires a lot of monitoring and mentoring.
- I don’t like to micromanage. I am a leader type of person.
- In that case, we can help you by doing all the dirty work. We just launched our new services for you. Virtual Sales Manager.
- All these philosophies are ok for the book but they don’t work in real life.
- No, think again. We follow these at Enjay, and we have been fairly successful.
- My business is a run rate product and cash flow business; these ideas will not apply to me.
- If not exactly these metrics, then some variation of this will apply. But the underlying philosophy remains the same.
- We have a very large team so these ideas are not possible in our company.
- If you have a large team, then you also have many managers. So every manager and his team will deploy this system.
- I don’t have time to look after my sales team.
- God bless you, We just launched our new services for you. Virtual Sales Manager.
- In my business the margins are very low I cannot afford all these ideas
- If you follow these practice then you will be able to fine-tune and optimize your process and eventually increase your margins.
How do you track your Sales Team Performance?
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