Sales and marketing is increasingly informed by the science of data. Reporting and analytics provide greater insight into what you need to do to sell more products and meet revenue goals.
While there’s almost no end to the amount of data one could pore over, the following three key indicators are the sales metrics that matter most:
Sales Metric #1: Talk Time, Then Dials
The knee-jerk reaction is to look at how many dials a day are occurring in the belief that daily activity is the key performance indicator. While call quotas are important, talk time actually helps you answer a key question:
Are meaningful conversations happening?
Are your sales reps having five-minute or 30-second conversations? Typically, longer calls mean there is discussion happening.
Talk time is also a key indicator showing the health of your sales database. You can make 100 dials, but if your talk time is low you may have above average bad data in your list. More dials is an exercise in futility.
If your sales performance analysis indicates that talk time is low, this is an opportunity to step back, clean irrelevant contacts out your sales database and refresh your call list with the right prospects.
Sales Metric #2: Baseline Results, Then Future Close Rates
Comparing a sales rep’s average performance is a key indicator of your sales program’s overall health, especially in terms of consistency over time. This metric is less about closing a certain number of deals in a given month and more about understanding your sales team’s rate of improvement.
Average performance per sales rep reveals:
- Who is really driving your results
- If your ongoing training efforts are successful
To gather information for this sales metric, start with a baseline number of closed deals per sales rep. One month later, record how many sales each rep made. Do this every month thereafter. Then you can see: If Sally closed five deals in February, did she close seven in March, or five again? What you’re looking to discover is the rate of improvement for each individual team member.
Ideally, you want your entire team to be hitting their mark and exceeding expectations. If you see that some sales reps are underperforming, this is an opportunity to provide more support or training. And, if you are training, the rate of improvement will show whether your training efforts are successful as well.
Sales Metric #3: Average Revenue By Sales Rep
The average revenue sales metric is essentially the litmus test at the end of the road. If you’re focused on improving talk time and working to have all sales team members hitting their goals, it should add up to better bottom-line results.
To further improve your revenue numbers, listen in on sales calls and use a consistent grade form to evaluate the opening, discovery, agreement and close skills of each sales rep. Tracking backward provides even more insight into who is really driving results and who may need to amp up their skill set.
Ready to discover the definitive sales metric-driven formula?