7 Key Performance Indicators That Every Sales Manager Should Use - Salesforce Blog
Conventional wisdom holds that revenue-per-sales-rep is the
only metric that ultimately matters in sales management. But sales
process optimization is all about identifying key strengths and
coalescing your team into an efficient selling machine. In other words,
management is about coaching your team to success.
only metric that ultimately matters in sales management. But sales
process optimization is all about identifying key strengths and
coalescing your team into an efficient selling machine. In other words,
management is about coaching your team to success.
When we talk about Key Performance Indicators (KPIs),
we’re talking about leading indicators - signposts along the way that
your sales team is doing the things they need to do in order to be
successful. Keeping your eye on nuanced, tactical KPIs is one of the
best ways to keep your strategy on track. Practicing great fundamentals
leads to great outcomes.
we’re talking about leading indicators - signposts along the way that
your sales team is doing the things they need to do in order to be
successful. Keeping your eye on nuanced, tactical KPIs is one of the
best ways to keep your strategy on track. Practicing great fundamentals
leads to great outcomes.
1-Lead Response Time
When it comes to lead response, speed is essential to
increasing sales reps’ odds of success. The data seems to confirm what
our instincts tell us -- that prospects equate a responsive company with
a good company. Since Harvard’s study on response outcomes
showed that sales reps that contacted leads within 1 hour were seven
times more likely to have a meaningful conversation with a decision
maker, other studies have affirmed the findings.
increasing sales reps’ odds of success. The data seems to confirm what
our instincts tell us -- that prospects equate a responsive company with
a good company. Since Harvard’s study on response outcomes
showed that sales reps that contacted leads within 1 hour were seven
times more likely to have a meaningful conversation with a decision
maker, other studies have affirmed the findings.
The only question then has been not when to respond, but
who should respond. Is some sort of automation such as an email or
robocall enough? Don’t kid yourself. There’s really no substitute for a
personal phone call by an actual sales rep. To measure this, you’ll need
to track inbound and outbound phone calls within salesforce.com
and look at how quickly your team, on average, responds. With few
exceptions, try to ensure that your sales team responds within 1 hour.
who should respond. Is some sort of automation such as an email or
robocall enough? Don’t kid yourself. There’s really no substitute for a
personal phone call by an actual sales rep. To measure this, you’ll need
to track inbound and outbound phone calls within salesforce.com
and look at how quickly your team, on average, responds. With few
exceptions, try to ensure that your sales team responds within 1 hour.
2-Rate of Contact
One thing we’ve learned from connecting call metrics to salesforce.com is that virtually every good sales manager wants to make sure that outbound call volume is high. A new study from AG Salesworks & BridgeGroup
estimates that reps should be generating roughly 32 opportunities per
1,000 outbound calls. Keep in mind that those numbers were for outbound
prospecting, a term that tends to include many calls that are relatively
cold. So keep an eye on those call logs. If lots of activity doesn’t
lead to achievement, it may be time to start listening to sample call
recordings to try to work on the pitch.
estimates that reps should be generating roughly 32 opportunities per
1,000 outbound calls. Keep in mind that those numbers were for outbound
prospecting, a term that tends to include many calls that are relatively
cold. So keep an eye on those call logs. If lots of activity doesn’t
lead to achievement, it may be time to start listening to sample call
recordings to try to work on the pitch.
3-Rate of Follow Up Contact
Persistence pays off. A National Sales Executive
Association survey found that 48% of sales agents never follow up with
leads a second time. This is significant since 10% of sales are closed
on the fourth contact, and 80% are made on the fifth to 12th contact. As
a sales manager, you hope to look at every lead record that is being
worked over time and see multiple leads and calls logged against it.
Association survey found that 48% of sales agents never follow up with
leads a second time. This is significant since 10% of sales are closed
on the fourth contact, and 80% are made on the fifth to 12th contact. As
a sales manager, you hope to look at every lead record that is being
worked over time and see multiple leads and calls logged against it.
4-Clicks from Sales Follow-Up Emails
Think about the best sales follow-up emails you’ve ever
received. Effective reps try to bring something to the conversation that
will re-interest and re-engage you. That often requires links to
content. That could be a link to a promotion, whitepaper, a new pricing
page, or in the B2B world, even a study that validates the product
being sold. The goal of this metric isn’t necessarily about volume or
click-through-rate (CTR). It’s to ensure that reps are actually
embedding links to content in follow-up emails that are tailored to the
leads they’re working. If you find it isn’t happening, it may mean that
you need to either get them more content they can use, or make them
aware of what you already have.
received. Effective reps try to bring something to the conversation that
will re-interest and re-engage you. That often requires links to
content. That could be a link to a promotion, whitepaper, a new pricing
page, or in the B2B world, even a study that validates the product
being sold. The goal of this metric isn’t necessarily about volume or
click-through-rate (CTR). It’s to ensure that reps are actually
embedding links to content in follow-up emails that are tailored to the
leads they’re working. If you find it isn’t happening, it may mean that
you need to either get them more content they can use, or make them
aware of what you already have.
5-Social Media Usage
This is one of the more difficult data points to measure,
but in general, you need to make sure that your sales reps are active in
social media. We know that top sales reps use LinkedIn,
and that there is a direct correlation between reps that are social
media enthusiasts and revenue as a direct result from the channel.
What’s less clear so far is how much contact and what types of contact
are making the difference. Since there are few KPI guidelines in place
for measuring social micro-strategies, you’ll have to rely on your own
instincts to define how your reps are making connections and using the
channel.
but in general, you need to make sure that your sales reps are active in
social media. We know that top sales reps use LinkedIn,
and that there is a direct correlation between reps that are social
media enthusiasts and revenue as a direct result from the channel.
What’s less clear so far is how much contact and what types of contact
are making the difference. Since there are few KPI guidelines in place
for measuring social micro-strategies, you’ll have to rely on your own
instincts to define how your reps are making connections and using the
channel.
6-Usage Rate of Marketing Collateral
As a marketer that has worked on many sales & marketing
alignment projects, I can say with confidence that much of the content
created for sales enablement purposes goes unused. This can be because
sales reps didn’t get favorable responses to it in the past, or because
reps forget it’s available, or even because they didn’t know it was
available in the first place. This is surprising because the right
marketing content can provide tremendous value to reps. Great content
such as whitepapers and videos actually offer reps an opportunity to
follow up with leads to see what they thought of it.
alignment projects, I can say with confidence that much of the content
created for sales enablement purposes goes unused. This can be because
sales reps didn’t get favorable responses to it in the past, or because
reps forget it’s available, or even because they didn’t know it was
available in the first place. This is surprising because the right
marketing content can provide tremendous value to reps. Great content
such as whitepapers and videos actually offer reps an opportunity to
follow up with leads to see what they thought of it.
Using the salesforce.com Content Library will tell you
whether various pieces of marketing collateral are being used or not. To
really close the loop on tracking, try using unique call tracking
numbers on all your content. This will tell you whether you’re getting
callbacks after the content goes out.
whether various pieces of marketing collateral are being used or not. To
really close the loop on tracking, try using unique call tracking
numbers on all your content. This will tell you whether you’re getting
callbacks after the content goes out.
7-Opportunity-to-Win Ratio
How many wins do your reps get after getting prospects to
the opportunity stage? This is a surprisingly important metric. You
might have sales reps on your team that are excellent networkers and
door-openers, but awful closers. If so, then you need to help them
either get better, or move them into a different role so that they can
open doors for your closers. Either way, tracking this metric is key.
the opportunity stage? This is a surprisingly important metric. You
might have sales reps on your team that are excellent networkers and
door-openers, but awful closers. If so, then you need to help them
either get better, or move them into a different role so that they can
open doors for your closers. Either way, tracking this metric is key.
Comments
Post a Comment