In a time when numbers are so easily accessible, you should be obsessed with them. The data is there, you just need to analyze it to figure out what works and what does not. The days of using intuition to get an accurate projection of sales are gone. When you look at the sales metrics you will be able to build your success.
At the end of the day, measuring the performance level of sales reps on everything will help them in their growth. It does not require a lot of money to set something up to measure growth so it just makes sense to do it. But remember, don’t create something where it will take the sales reps a lot of intensive labor to document. Instead, create something that will be usable by them and by you to help increase growth. Measuring growth shouldn’t be a burden, it should be a tool.
Sales metrics can be measured for an individual, for the team, and for the company so that you can see how things are on a whole. This is why it’s important you have good metrics because you will be able to spot a problem before it is too hard to deal with it.
After you begin tracking the pipeline it will more accurately show how your reps are dealing with inbound and outbound leads. Then, you will be able to see if the inbound leads are working or not. For example, if they are working for most sales reps but not for one, they may need coaching on how to work with the inbound leads. If they are not working for anyone on the team then maybe marketing is missing the mark with the leads. Having good sales metrics will help to see where the problem lies so that it can be dealt with.
This is also useful data when tracking outbound leads. Your sales reps can’t rely on inbound leads alone so it is important to see that the reps know how to generate their own leads and business. You will be able to see if they are prospecting properly and then how they are converting leads into sales.
By tracking these leads so closely you will also have the data to show how often your reps are following up. Sales metrics will show you who is properly calling to generate sales and how they are taking leads and converting them into sales. Using metrics will help you to understand what is going on in the business and how you can help your reps to grow and develop in their career.
Key Performance Indicators
It’s important to note that in any conversation about sales metrics, KPI’s play an important role. Why is this? Because sometimes the key performance indicators are the same as metrics but sometimes they are not. You need to look at the big picture so that you know how the company is doing overall. You will then be able to work on driving the percentage of sales up.
Sometimes things may be different depending on the type of company and how different leaders manage different KPIs but the sales metrics will indicate how sales reps are performing as individuals and how the team is performing as a whole.
What is it and how do we use it to track sales metrics?
Let’s first start with leading and lagging indicators. Leading indicators and lagging indicators tell you two different things. The leading indicators will help you to predict your results; you will be able to see how you are trending on a product and determine whether or not you need to make changes based on what the indicators are telling you. You will also be able to determine your potential business for next year if you consider upgrades that customers will need.
If you can predict how much business you will do based on current clients, you will know how much you need to do with new clients in order to hit your numbers. If reps are not trained on how to obtain new clients, they may need some work in this area. It is also possible to motivate reps to get new business by providing bonuses for both upgrades and new business.
Leading indicators can be hard to measure but easy to influence while lagging indicators are easy to measure but hard to improve or influence.
In order to improve the lagging indicators sales reps may need extra coaching so that they are able to obtain and manage outbound leads and drive some of their revenue on their own.
It is important to use the data from the sales metrics so that you know what each member of your team needs in order to create their own personal and team success and drive revenue for the company at the same time.
Keep Filling The Funnel
We would love to hear from you. Let us know what you think about this episode. Please feel free to reach out to us if there is a specific sales topic you would like me to cover. You can find me on Twitter at @Sheajohnr or email me at email@example.com. And if you get a chance, please feel free to review us on iTunes.