• Sales Metrics Every Organization Should Know

    Billy Wilkinson, President of Invenio Solutions’ Telecommunications division was a guest on the Sales Lead Management Association (SLMA) radio show on June 20. The SLMA radio is an international radio show that provides best practices for marketing and sales management. During his interview, Billy shared his insights on the importance of metrics in sales management.

    Measure (Aussiegall)

    Before discussing the sales metrics every manager should know, it is important to understand the difference between data and metrics. While both terms are closely related, they are not to be confused. Data is the raw and unorganized information that derives from the organization’s activity. Metrics, on the other hand, are the tools that help managers decode data and translate it into efficiencies gained. Metrics provide crucial information and the cornerstone of any managerial decision.

    A simple equation can help you define, collect, and interpret the sales metrics useful to your business:


    The first step in putting this equation to use is to define the results. Every sales organization has different goals, whether it is maximizing revenue or increasing the average deal size of a widget sale. The goals need to be clearly established in order to help managers define which sales metrics really matter to their organization.

    Activity and effectiveness are strongly tied together. Effectiveness stands for how well one can perform a given task (e.g. building rapport, overcoming objections, closing). Every one of your sales representatives is unique and has his or her own set of skills. As a result, it is essential for you, as a manager, to understand their strengths and weaknesses. Once you have measured effectiveness, you can allocate adequate activity to each rep to achieve the previously-defined results.

    While each organization should establish their own unique use of sales metrics according to the results they seek, metrics have proven to be extremely effective in the following three areas:

    • Recruiting. Establish the metrics that characterize your top 30 sales reps (such as personality type and IQ), and use this information to drive hiring decisions.
    • Training. Metrics can also help you assess the effectiveness of your divisional sales trainers and recalibrate their methodologies according to the product or service they are selling.
    • Management. Using side-by-side comparisons, you can determine employee effectiveness. This information will tell you how to properly train your reps and achieve greater results as a sales organization.


    Here are only a few key points discussed in the podcast. To learn more about the sales metrics every manager should know, listen to the full podcast:

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    Here are the major points highlighted during the podcast:
    05:24 – The Importance of Sales Metrics
    05:58 – Understanding the Difference between Data and Metrics
    06:39 – Activity x Effectiveness = Results
    20:29 – 3 Areas of Your Business to Which You Can Apply the Equation

    Photo by aussiegal (Flickr user)