With real-time sales anlaytics, sales managers can coach their reps more effectively (by using actual activity conversion data), manage pipeline more efficiently (by looking at opportunity engagement and stalled opportunities) and make more accurate data-driven sales forecasts (using pipeline stages instead of forecast stages). Here are more details on the three key areas of sales analytics every sales managers needs to monitor to be successful.
- Activity conversion ratios
It’s not just the number of activities done, but the conversion rates of these activities that can really have an impact on your sales. Many managers merely track the raw number of calls that their reps make, which can be misleading. Just because one rep makes a lot more calls doesn’t make him or her a better employee, especially if other reps are producing higher conversion rates from calls to demos to Closed-Won deals. A good sales analytics product should link activities to opportunities to deals, which is difficult to do with CRM and Excel alone.
- Opportunity pipeline
Sales managers require instant and regular visibility into each rep’s pipeline to discern which opportunities have stalled, which ones are moving forward with momentum, which ones are not being engaged with sufficiently and which ones have negative velocity. These key sales analytics contribute to you gauging the overall helath of the pipeline for each individual rep when you meet during your Pipeline Review meeting.With effective pipeline management, you will be able to answer:
– How are the opportunities in this pipeline trending over time?
– How long is each rep’s sales cycle traditionally?
– What is the win rate like between different stages of the sales funnel?
– Are opportunities spending too long in certain stages to be considered a likely closed/won deal?
- Sales and deals closed
Sales Managers need sales analytics to study the existing sales funnel and sales cycle for each individual rep to better diagnose issues and coach the team more successfully on improving sales performance. The sales funnel report, pictured below, can help managers answer these questions:
– Are fewer deals being closed? If so, is this because reps are not demoing the product well enough or because they are negotiating poorly?
– Where is the drop-off between stages and are there any significant drop-offs at any particular stage?
– Which reps have the highest and lowest conversions from the top of the Sales Funnel to Closed-won?
These data points can help managers identify coaching opportunities that can be used to improve overall sales performances. The Bookings Trend diagrom below shows how the company’s sales are trending within the given time frame. Are individual deals decreasing in value? Do you, as a manager, need to coach your reps during a challenging month? Don’t rest on your laurels of deals already closed, but be proactive and look at real-time sales analytics to get actionable insights now before it’s too late.
This is but a small handful of the numerous sales analytics available to sales managers. Using InsightSquared, the best software available for tracking and understanding sales analytics, managers will be able to determine what metrics are most important to them effectively leverage them for their company’s growth.
InsightSquared was like shining a light in a dark room for us.[/note]
- Steve Richards, Co-Founder, Vorsight