The Sales Performance Metrics That Matter Most
Sales is all about math and science. In order to track your sales performance, you should know how to measure it. Otherwise you are expecting growth in sales but all of your actions are pointless and your sales team is just busy being busy. Below are some key metrics we at Smart Systems Technology rely on and decided to share with you.
1. The Time Spent for Selling. Time is money. It is the most precious commodity of the sales rep. If you take the time your reps actually spend selling you can identify the issues that are damaging your sales performance.
2. The Sales Cycle. How much time does it take for your reps to close a deal? You should measure the average time it takes a deal to pass through each stage of the sales pipeline. Shortening the sales cycle is important for higher performance.
3. Sales Funnel Leakage. If there is a hole in your sales funnel you should be able to determine it. With the right measurement, you can find out where the hole is, what is causing it and gain insight on how you might plug that leak. It is crucial as it is not only leeching potentially valuable leads, but also revenue.
4. Average deal size. The average size of closed won deals is a metric which can quickly flag deals that may not be worth pursuing. One of your priorities as a sales manager is to ensure your reps are spending their time as wisely as possible. You don’t want them to enter data, manage the relationships or fulfill literature. The sales person should only sell.
5. Specific Action Metrics. You should set numeric goals to your sales team. These goals are typically based on a target number of actions and a specified period (day, week, month, etc.). For example the number of meetings scheduled or conducted, proposal sent, follow-up emails sent, first contact or follow-up calls made.