Legendary basketball coach John Wooden knew the difference between measuring actions, and measuring true success. As a sales manager, how do you measure success on your team? Do you look at new opportunities added to the sales pipeline, number of meetings booked, or total value of deals closed?
While measuring sales metrics is valuable, not all metrics truly measure your team’s achievements. Some data only points to the effort and work you put in to get results, but not actual results themselves.
As a sales leader, you should be tracking many activities across your sales team, but you must be completely focused on achieving results from those activities. Don’t mistake an increase in vanity metrics for progress. Here’s how to use specific sales metrics to improve your team’s results and boost sales achievement.
Know the Activity Ratios
Many sales teams set goals according to how many dials reps make per day or how many meetings they book, but how many of those dials actually result in a closed deal down the line? Instead of just setting activity goals for your team, you should keep an eye on whether those activities lead to real results.
This report shows you the activity ratios across your sales team, so you can understand how effective activities are in moving opportunities down the funnel. What is your team’s ratio of calls to connects, connects to meetings scheduled, meetings to opportunities sourced, and how many meetings lead to no-shows? All of this information is vital to understanding whether your team is actually working leads the right way.
Track Individual Reps
In addition to looking at your entire team’s activity ratios, you should also track each rep’s personal key performance metrics. What is one rep doing well that another rep is struggling to accomplish?
Here you can see that Nancy Olson has closed the most deals on your team, but she also is wasting a lot of time on meetings that are no shows. In contrast, Joe Smith has fewer no show meetings and more opportunities sourced, leading to a high number of deals closed overall. You can use these metrics to offer targeted sales coaching to improve the achievement for all of the reps on your team.
Analyze the Funnel
The best possible metrics to track sales achievement are your team’s overall win rate and conversion rates as opportunities move down the sales funnel. You need to understand every step of the sales process and the results your reps achieve along the way.
Looking at this report, you can immediately see that you need to improve your team’s conversion rate from Present Solution to Technical Fit. It’s the lowest percentage, at just 59%. Why is this happening? You need to look back at the activities on your team and see how you can improve performance and close more deals.
Analyzing sales metrics may make you feel like you have a handle on everything going on across your sales team, but do you really? If you’re only tracking activity metrics, you’re missing out on the whole point. Track the right sales metrics that measure your team’s true achievements over time.