Making quota is your monthly goal. But a data driven sales manager does not just look at the monthly quota as the overarching health of the sales team. More important is what worked this month, and what didn’t.
Here are three more benchmark statistics that give you insight into both why your team performed the way it did and how you can improve sales performance going forward.
(For even more detailed information about sales metrics, check out our FREE eBook: The Right Metrics for Your Inside Sales Team.)
1. Total Activity
Your team’s activities are a leading indicator of your pipeline’s potential. It’s impossible to move leads through the pipeline without picking up the phone, sending e-mails, or delivering demos. The total activity of each team member is critical to meeting quota.
Action: Set monthly goals for total calls and demos to stimulate performance.[contentblock id=71 img=gcb.png]
2. Sales Cycle Breakdown
The sales cycle breakdown identifies the average length in days to close one deal. In addition to a team’s sales cycle, you should also drill down on an individual to see what is slowing down deals for that person.
Example: Suppose you manage Harry. His current sales cycle is 141 days, while the team’s average is 72.5 days. Harry’s prospects spend roughly twice as long as the rest of the team in the sales cycle. In particular you see that Harry’s prospects stay in the “Identified Phase” (yellow bar) for 54.8 days, while the team average is 16.1 days.
Action: This is where you can step in as a manager to coach Harry on qualifying prospects early on in the sales cycle.[contentblock id=71 img=gcb.png]
3. Calls to Close Ratio
This may be the most important data point to track because the calls to close ratio measures efficiency. More precisely, it gives you an idea of how many leads your team needs at the top of the funnel to bring in one deal.
One of the biggest reasons a ratio will be inflated is not converting an intro call into a warm lead. Try A/B testing with different scripts to nail down your intro and improve your calls to close ratio.
Action: Ratios empower you to benchmark which individuals are best at moving leads through each stage of the sales funnel. You can reward team members with the lowest ratio.
Dive into your data next month.
Setting a fair quota for individual team members is about understanding how they performed in the past and where they can improve in the future. These three metrics give you a few more data points to track the success of your sales team beyond the monthly bookings so you know exactly how your team is performing.[contentblock id=33 img=gcb.png] [contentblock id=18 img=html.png]