One of the most obvious ways to measure sales performance has always centered around calculating the revenue that representatives generate. For sales managers, revenue, profitability, and market share are considered to be the most important sales performance metrics. That said, organizations are constantly debating on other metrics that can help determine the success and effort of a sales rep, including things like number of calls, meetings, e-mails, and other customer communications.
Revenue is not the only metric that sales managers should pay attention to. Being too focused on making sales or quota makes them forget that there are other valuable performance metrics that should be focused on, especially if a good sales rep is having a bad month.
In order to improve the overall performance of your sales team, consider these additional sales metrics.
Measuring how much time your reps spend on selling/talking to prospects can help you identify any issues that might be hindering sales performance. Time is precious no matter what you do. For sales reps, time is one of the most precious tools they have.
Information gathering represents one of the most common struggles of sales representatives. When searching for information relating to selling a prospect, sales representatives spend between 6.5 and 8.8 hours per week. Measuring where sales representatives spend time will allow you to locate issues like this and look for solutions, like procuring software that connects sales reps with the information they need more easily.
Opportunity Win Rate
Opportunity win rate (closed won status) is a critical sales metric. Increasing your opportunity win rate is the single most powerful way to increase revenue.
If you keep track of opportunity win rate, it will give you insights into the ability of your sales rep to close a deal. A rep’s closing ability plays a significant role in sales performance, so by measuring opportunity win rate, you’ll be able to determine any possible hindrance in your rep’s process.
Some sales reps can easily work a deal through the pipeline but end up failing when it’s time to close the deal. Measuring this metric will tell you which reps have low opportunity win rates. From there, you can determine various solutions, like:
- Sitting with the rep during a call
- Providing additional guidance and training
Specific Action Metrics
Evaluating sales performance on the basis of measurable actions is critical, aside from just measuring metrics relating to the final outcome.
Setting action-based goals:
- Can be for the whole sales team
- Or for individual sales reps
- Or both!
These goals are usually based on a target number of actions within a specific period (day, week, month, or quarter). Geckoboard shares a few examples of specific action metrics:
- Number of outreach e-mails sent
- Number of first contact or follow-up calls made
- Number of follow-up e-mails sent
- Number of meetings scheduled or conducted
- Number of proposals sent
Aside from outcome and action-based metrics, another important measurement that sales managers shouldn’t forget is employee satisfaction. The happier your employees are, the more productive they’re likely to be. And the better their performance, the more likely they are to execute better engagement with leads that can easily end in closed won deals.
Keep an eye on your employees. If you see early indicators of dropping employee satisfaction, take immediate action. Do your best to figure out the reason that satisfaction is dropping, and determine a course of action to correct the issue.
Finding success is not always easy when it comes to sales.