If you can’t measure it, you can’t manage it. Therefore, sales managers need to identify the key sales performance metrics by which to judge their sales reps. By studying key sales performance metrics, sales managers can improve the performances of their reps, stay on top of all opportunities in their pipeline and manage the health of the sales funnel. Here are three of the most important sales performance metrics to study.
- The performances of your sales reps
Sales managers are responsible for managing and coaching the performances of their sales reps. By tracking key sales performance metrics, they can identify the exact activites that reps are doing and compare them to goals. Additionally, they can see how productive these activities are – are they leading directly to demos and deals? Are reps making enough calls, emails and touches each day? Are they converting an appropriate number of prospects from the demo stage to the trial phase? Are opportunities spending too long in early stages? These are important questions that can be answered by looking at sales performance metrics.
- The opportunities in your pipeline
By studying the sales pipeline regularly, sales managers will know if there is enough pipeline to reach quota, based on historical conversion ratios. Managers can find these conversion percentages by acutely studying sales performance metrics within the sales pipeline. Managers can look at the total value of their deals, how that is changing over time and what that means for the future.
- The shape and state of your sales funnel
Managers should always be studying their sales funnel to ensure that it is maintaining the proper shape. Sales funnels should be widest at the top, where the widest pool of unqualified prospects reside, and narrowest at the bottom, where only the most qualified prospects remain. Additionally, it is crucial for managers to study sales performance metrics and determine win rates at different stages of the funnel, as synced to the buyer’s process and perspective. For example, if a great percentage of prospects are progressing through early stages but abruptly plummeting at later ones, managers might want to add stages with more distinct conversion points to better qualify leads early on.
InsightSquared is the sales reporting and analyzing software you need. With a world of sales performance metrics to choose from, InsightSquared can help managers focus on some of the key metrics mentioned above, as well as any number of other metrics best suited for their business.
InsightSquared is the irreplaceable complement to Salesforce.
- David Fishman, VP Marketing, Marantis