Are we on track to accomplish our monthly objectives? Are my salespeople achieving their maximum potential? Are they pleased with the results? What areas should I focus my training efforts on for them?
Problems like these are frequent among sales leaders, particularly those in the inbound sales profession. And did you know that simply tracking the appropriate growth metrics can alleviate a lot of these problems?
It is vital to have clearly defined sales metrics and analyze them regularly to determine whether or not your sales area is healthy. А good b2b demand generation strategy can also help you with this process.
What are sales metrics?
An individual piece of data is known as a sales measure. A person, group, or whole organization’s performance can be assessed using this metric.
Effective sales executives are always up-to-date. They keep tabs on how far they’ve come toward achieving their objectives.
This not only gives you a heads-up on potential new business ventures but also helps you plan ahead. There is a sense of anticipation and management that comes from this.
Sales growth can only be achieved if you know your sales data. Take action to enhance the metrics once you know them.
The administration of a successful company is one of the foundations of that success. Knowing how your company is operating is critical in order to develop effective plans and focus on what truly works for your business.
Every company needs to have a customer relationship management system (CRM), which will not only facilitate the prospecting, negotiating, and closing activities of your sales force but it will also allow you to identify and analyze strategic data that your company requires to make informed decisions in advance.
Below, we’ll go through the six main sales metrics every company needs.
Number of new leads
Essentially, leads are the fuel that keeps your pipeline operational. It is critical to keep an eye on this measure to ensure that it is available.
With a CRM, you can determine the most effective channels for capturing them. You will then be able to choose which ones you should continue to promote through your marketing techniques.
Number of leads that were converted into opportunities
Increasing the number of prospects in your pipeline boosts your chances of closing more sales in the long run. It will also serve as a signal that the leads you receive are of high quality.
Additionally, it is helpful to know the conversion rate between each pipeline stage to understand better where chances are being missed.
Number of opportunities won
It is not enough to win opportunities; know the factors that helped you achieve them. Identify the type of industry in which you have the most significant presence, in which ones you are gaining ground, in which geographic areas you need to increase your sales force, and more.
Number of lost opportunities
Analyze how many sales you have missed out on and the reasons for not converting those leads into sales.
If you visualize these causes, you will be able to identify areas where you need to make changes, such as the sales process, your product/service, customer support, pricing, and so on. Visualization is a powerful tool for identifying areas where changes are needed.
Top selling products
What are you selling the most? We may simplify this metric to include only total sales and the money earned by those sales. However, a CRM enables us to go one step further by identifying which products are generating the most interest.
This allows us to determine whether Product A (whose price is the lowest in comparison to the other products) or Product C (whose price is the highest in comparison to the other products) is the best seller by analyzing the sales volume.
The sales forecast
A CRM’s forecast will allow you to anticipate events and predict revenue flow to determine whether or not you will meet your sales objectives.
When the flow is not as predicted, it will also allow you to take action during specific intervals.
And, of course, the forecast will assist you in motivating your sales staff when the outlook is favorable or in identifying corrective activities when the outlook is unfavorably optimistic.
The Bottom Line
It is critical that the entire team understands the metrics and that they are displayed on graphical dashboards that are simple to comprehend and interpret.
Having a sales dashboard that is easily available will provide your team with a daily snapshot of their performance and the chance for your management to look for assertiveness in their selling approach.
Additionally, it will assist your firm in identifying areas where it is succeeding as well as bottlenecks that are making things difficult. The ability to transform data into business intelligence is critical, so your CRM must have this capability.
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