Introduction:

Sales Metrics are used to measure success and use data to help you sell more. As a sales manager, understanding your sales metrics is key to overall performance and growth as a company. But just as the title says, you can’t manage what you don’t measure! If you aren’t measuring your sales metrics, it’s time for a change. As always if you have any questions please schedule a free 30 minute consultation and i’ll do my best to help in any way I can.

 

What we’re going to cover:

  • Measure success
  • Sales metrics
  • Key performance indicators
  • Data

 

 

 

Measure success

 

Intuition

“The days of intuition should be over. Instead, you should be able to look at metrics in your sales department to help you be successful. You don’t want to go on feeling alone, ‘well they like me, I think they’re going to buy because they said they might’ I get it, that’s part of it but the numbers bear out the details you need to be successful.”
 

Obsessed

“I want to know when and where you’re having success as a rep and where you’re failing because metrics will help you to do that, key performance indicators will help you do that. You need to pay attention to that and you need to work very hard to understand those numbers. Because successful companies measure the heck out of it. They measure it so they can tell you what’s going on and when it is happening. So, you want to measure that stuff, you want to measure success.”
 

Sales metrics

“When you begin to peel back the layers based on the sales metrics, and you can create fixes to help you get better at what you do and sell more, because that’s the objective.”
 

Sales metrics

“Sales metrics represents the individual sales rep or the team’s performance or the company’s performance. Those metrics tell you how they’re performing and we use them to track our progress towards our numbers or goals. Then we use them to make changes in everything  from pricing to compensation. With good metrics, you can spot a problem before it gets out of hand, before it becomes too much of a problem, because they provide valuable information.”
 

1. Activities

“Sales activities are what you are doing on a daily basis as a sales rep.”

 

2. Pipeline/Forecast

“The pipeline and the forecast because if you have an accurate pipeline, accurate forecast and you can predict the future, you can get resources, and product in place ahead of time.”

 

3. Inbound

“Sales metrics are also used to track how you’re doing with inbound from marketing to sales. What do you do with those inbound leads? How successful are you? Is it the leads, is it you? The reps may say that the inbound leads suck, but if you have the right metrics in place you can learn if that’s the truth.”

 

4. Outbound

“The dirty little secret is you cannot survive in a world where inbound is the only option, where you are only living off of inbound leads. You need to drive your own outbound business as a sales rep in any company. So, we want to know how you’re doing with your outbound. Sales metrics will tell you that.”

 

5. Prospecting

“We want to know how you’re doing with your prospect. Are you doing warm emails, phone calls, follow ups? What are you doing with that prospecting? The sales metrics will help you track that.”

 

6. Conversion

“How are your conversion rates? How am you converting on everything from an inbound lead to an outbound opportunity or referral?”

“Prospecting takes me X number of emails, to X number of prospects, to convert one to an appointment. Sally over there is converting better than Johnny over here, what is she doing differently? Metrics will help you understand that so then you can apply what you’ve learned with Sally to Johnny and improve his numbers.”

 

What’s the point?

“Sales metrics help you manage and understand all of those variables so you can make good quality decisions.Those people with their heads stuck in the sand still living under rocks and still doing it the old way, they’re avoiding the obvious. That there are metrics out there that can help them run their business and they don’t want to spend the time or the money or the effort to do that.”
 

Key performance indicators

“Key performance indicator is more of a big picture. For example, if you are trying to drive a particular product or service, you’re  looking at that as a percentage of total sales and how you can drive that up. That’s a key performance indicator.”
 

Company

“The key performance indicator is tied to the entire company’s strategy, that’s what you’re looking for. You’re looking at how the company is working. So, maybe you want to get more people to sign up for out $50 a month product, so you need to figure out a way to do that efficiently because its only $50 a month. So, what is the cost of acquiring a client and how can you lower that KPI?”
 

Inbound, Outbound & Changes

“You can look at the KPI’s for inbound, for outbound, for changes, and in some cases by department or company. Obviously, it’s different by company. Different leaders in different parts of the company are managing different KPI’s and they’re important to the overall picture. So think of KPI as more of a big picture item and sales metrics specifically related to how sales reps are performing. Including how you’re performing in sales from the team to the individual level in some cases to the company level. Because KPI is more about strategy.”
 

Data

“There are different types of data that you’re using here. You’re using data for leading indicators, you’re using data for lagging indicators, and everything in between.”
 

Leading indicators

“A leading indicator is predicting your results. How am I trending on this product? How am I trending on that? Should I change based on what the indicators are telling me? It’s difficult to track that because it’s the future, it’s what potentially could happen in the future. But it’s important to know what those indicators are because you need to make changes based on them.”
 

Lagging indicators

“Whereas a lagging indicator is more measurable, but harder to change. Which is why you need to know both lagging, and leading, because there are things you can do with both.”
 

What’s next?

“You can apply additional metrics to those indicators or determine what’s next for you. Depending on who you are, what you’re selling, and how you’re selling it, it’s all going to be different. So, keep that in mind when you’re thinking about what to do next with your sales metrics.”
 

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 jshea@alignment-group.com.  And if you get a chance, please feel free to review us on iTunes.   sales candidate assessment free trial

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