Are you looking for the best sales metrics to measure the success of your company’s selling efforts? Well today, I’ve got 7 for you!
But before we dive in, be sure to document each of the following sales metrics in your Sales PlayBook. Doing so will guide your selling efforts moving forward.
Let’s get started.
7 Sales Metrics to Measure Success & What to Do with Them
Tracking referral requests is pivotal. And you’ll probably notice that I stated “requests,” rather than “received.” This is deliberate. You can’t control how many referrals you receive, but you can control how many you ask for.
As a sales manager or CEO, it’s a good idea to ask your salespeople to commit to a referral request target. This makes them more likely to perform this activity.
A great way to encourage this is through gamification. Create a game by awarding points for how many referrals each person asks for. At the end of the month, give someone a prize of your choice for the most referral requests.
At CFS, we provide a seven-step process that begins with the request and ends with keeping the person who referred you in the loop. For more details, see our blog on Why are people not giving me any referrals?
It’s also important to keep track of the number of leads received at an individual and team level.
Also track the sources that bear the most fruit in generating new leads. These include:
- Inbound marketing (i.e. downloads on your website)
- Referral requests
- Events – such as trade shows, speaking engagements, conferences, and networking
Having sales metrics related to is critical in measuring how well marketing and sales are working together.
When it comes to sales metrics, it’s important to count the number of disqualified opportunities.
One thing that we cover in our professional sales training program is how to disqualify as early as possible. This serves prospective customers well because they’re not wasting their time. Obviously, your salespeople’s time isn’t being wasted either. By disqualifying early, salespeople aren’t getting emotionally hooked by opportunities that are not a fit.
The second set of sales metrics includes counting the number of qualified opportunities being worked at any one time. You can do this at both the individual and team level. Determine the length of time these opportunities are moving through each stage of the pipeline.
The third set of sales metrics in this area includes tracking the sizes of your opportunities. This gives you insights into the type of customer, the type of salesperson, required effort, and the marketing and messaging involved for large versus small opportunities. By doing this, you may discover that it takes about the same amount of effort to close a small transaction as a larger one.
Be prepared to readjust targeting and forecasting moving forward as you spot trends that are provided by the sales metrics that fall under opportunities.
The next set of sales metrics to track is with conversion ratio.
Measure how many opportunities convert to close/won.
Group these into categories and track by customer type, transaction size, and salesperson. We’ve seen that customers that are invested in a strong relationship with you buy larger transactions and convert at a higher rate.
On the other hand, a transactional buyer that is price sensitive buys smaller transactions and converts at a lower rate.
Match the type of salesperson that is better suited to selling higher valued transactions to more sophisticated buyers. These would typically be your A+ and A salespeople.
Professional sales training can impact these sales metrics when you teach your team how to work best with key executives and more sophisticated buyers.
Meetings and Phone Calls
In a highly transactional sales environment, such as inside sales, tracking call volume and meeting activity is important.
For example, if inside sales generates appointments for outside sales, measuring these two sales metrics will give you valuable insights into performance. More phone calls lead to more meetings, which lead to more opportunities, resulting in more closed business.
However, there is some fuzziness around these two sales metrics. Phoning someone to wish them a happy birthday could be logged as a call. Meeting someone for coffee and doughnuts could be marked as a meeting. Make sure your professional sales training helps you provide a clear definition of this type of activity.
The best leading indicator of future business is tracking the number of follow up emails sent to prospects and customers. At CFS, we call these the DEAL emails. When working on a bona fide opportunity, every salesperson should send a DEAL email after every first sales call (phone or in-person).
DEAL stands for:
- Determine requirements
- Engage the prospect
- Assume responsibilities
- List the outcomes you are driving for
This email is a huge time saver and a great way to qualify or disqualify a new opportunity.
We have an entire eBook dedicated to this practice. See our Discovering High Performance with DEAL eBook.
Tracking the number of proposals sent are good sales metrics that indicate how many opportunities passed the disqualification stage.
At CFS we refer to proposals as “confirmations.” In our view, a proposal alone doesn’t close opportunities. A “confirmation” implies that everything that is laid out in the document confirms what has already been discussed. Applying this philosophy ensures that the salesperson is doing his or her due diligence before sending the proposal.
These sales metrics alone don’t guarantee success, but they give you good indications on where to focus in order to help your team be successful.