Which sales metrics matter?
Sales metrics are crucial for understanding the performance of your proactive sales strategy but just because you can measure an activity doesn't mean it should be measured.
Too often sales managers measure things just because they think that’s what Sales Managers should do and don’t actually take the time to understand what the metric is telling them. Below are the metrics we consistently measure when implementing new proactive sales plans.
1 - Value of sales pipeline…
Understanding the total value of all active deals in the sales pipeline will help forecast future revenue.
2 - Number of customer calls…
These are true sales conversations - not customer service calls where we are calling to simply “catch-up”.
3 - Number of prospecting calls…
This metric ultimately measures the sales effort and includes voicemails, messages left with receptionists, and so on.
4 - Number of prospecting emails…
It’s key to see the correlation between the number of calls and the number of emails made to prospects. It’s important to remember that each industry will be different so there won’t always be a 50-50 event split.
5 - Length of time it takes to turn a lead into a customer…
Knowing the speed at which leads move through the sales pipeline helps us understand when marketing activity will pay-off and help forecast revenue shortfalls against budget.
6 - Percentage of leads that become a customer…
This metric tells us how many leads we need to generate in order to convert one customer.
7 - Percentage of opportunities won…
By comparing the number of opportunities won with the total number of opportunities we can evaluate the effectiveness of the sales team and strategy.
8 - Average value of closed deals…
This helps understand how much each sale is worth and how many sales are required in order to hit monthly & annual budgets.
9 - Revenue per salesperson…
Knowing how much revenue each salesperson generates is key to understanding their effectiveness.
10 - Percentage of new customers who provide valid referrals…
This is a great way to understand customer satisfaction and whether we do a good job of asking for referrals.
At yellow brick we can help you implement and monitor the right sales metrics for your business, identify trends, and forecast more accurately. Contact us today. email hello@yellowbrick.ltd or complete our enquiry form.