Last month’s sales results are in and a new month has begun, but it’s not time to move onto new opportunities coming down the pipeline just yet. It may seem like a waste of precious time on a busy sales team like yours, but you need to step back and look closely at last month’s sales results to better understand your team’s performance.
Much like world history, those who don’t learn from sales history are doomed to repeat it. Because of this, the best sales leaders in the business conduct a post-mortem analysis of the previous month’s wins and losses in detail at the beginning of each new month. As a sales manager, you should use data analytics to understand the reasons behind your team’s performance and learn from both your failures and your successes.
Here are the metrics every sales manager needs to understand each month in order to improve their team’s skills and drive better sales results.
Analyze the Win Rates
More than anything else, you want to learn why your team won some deals, and why you lost others. A detailed analysis of your Win/Loss ratio for the past month can help you answer that question. What was your entire team’s overall win rate? What about the win rate per rep? How does that compare to previous months? And what were the reasons given for each of the losses?
This report shows you the win rate for each individual sales rep, and reveals that some reps closed a much higher percentage of deals than others. What are they doing right, and what can you ask other sales reps do to improve their performance? In this case, you should talk to Andrea and Rachel and get them to share their experiences with the whole team, so that hopefully Joe and Helena and other reps with low win rates can improve. However, that information alone is just the first step in driving up your win rate across the team.
Review Conversion Rates
Knowing your win rate isn’t really enough – you have to understand why you’re winning deals and find ways to improve performance. This means you need to know where and when opportunities were lost in the first place. You can discover this by looking at your team’s overall conversion rates through the sales funnel. As opportunities moved from Qualifying to Present Solution to Technical Fit, many opportunities were lost in the process.
In this report you can see that your team had the toughest time converting opportunities from the Qualified Stage to the Present Solution Stage – only 57% of opportunities made it to the next stage. By discovering the weakest point in your team’s funnel, you can try to improve your performance by experimenting with new sales techniques that could improve this number next month. If you’re able to push the rep’s conversion rate from 57% to more like 70%, you will see a big jump in the number of opportunities that become deals, and in your overall win rate. These conversion metrics are open for improvement and can drive huge sales numbers.
Compare Sales Cycles
Much like with conversion rates, you can help your team improve their win rate by looking at how long it took reps to close every deal. In general, sales managers know that opportunities that linger the longest in each stage of the sales funnel are less likely to close. However, you can understand this information at a much deeper level. By finding out your teams average sales cycle, looking at sales cycle by rep, and comparing the sales cycle for won vs. lost opportunities, you can discover some surprising facts about your team’s performance.
In this report, you can see that winning opportunities spent only 2 days in Qualifying, 4 days in Present Solution, 2 in Technical Fit and less than 1 in Closing. It’s easy to see that the majority of deals were lost after languishing in the Qualifying Stage for more than 6 days and this is clearly an area where you can drive improvements. Push your reps to close deals faster and not neglect any promising opportunities for longer than a day or two. Using this information, you can prioritize deals that behave like winners, and put less effort into deals that have been in the pipeline for too long.
This sort of focused analysis is the difference between constant improvements based on real data, and hits or misses based on intuition and guesses. By consciously analyzing your team’s sales performance each month, you’ll be able to offer better coaching, training and guidance to every sales rep. Help push your team to the next level with a post-mortem sales analysis each and every month.