7 Essential Sales Performance Measurements

Although the sales performance metric is one of the most important revenue per rep metrics, it isn’t the only one sales managers should be focusing on. Too often, manager’s focus primarily on the quota and making numbers and they ultimately lose sight of the things that matter.

That doesn’t mean all hope is lost. Managers can maintain better control over sales performance and activity with the following information. When you focus on specific key areas, the sales manager can boost sales performance as they boost revenue.

To achieve this, you need to look at the following areas essential for performance. These contain both important sale metrics and the KPIs essential for success.

1. TIME SPENT SELLING

Pay attention to how long your reps are spending selling. This can help you to determine other issues plaguing these individuals. Time is one of the most critical commodities of a sales rep.

When you look at this area, you can remove roadblocks and help them to overcome the struggles they face. One of the biggest time consumers is the search for information. It is estimated between 6.5 and 8.8 hours are spent searching for information each week. A sales enablement software can reduce that time and boost sales performance.

2. LEAD RESPONSE TIME

Businesses today are moving at a breakneck speed. A increase in inbound marketing suggests more companies are focusing on their online tactics to produce new leads. Speed response is essential since online leads have a short life span.

Research has shown that companies who contact a lead within the first hour of an in information request are seven times more likely to qualify the lead. A 24 hour delay reduces the likelihood of a sale by as much as 60 times what they would have had if they had contacted them in the first hour.

A quick response time is essential to boost the performance of your sales team. There’s a good chance your company is looking to boost your online presence and to develop new leads. Make sure this investment is paying off by increasing your response time.

3. MARKETING COLLATERAL USAGE

The American Marketing Association (AMA) suggests 90% of marketing content is unused by sales. Despite that, there is an increase in the investment of marketing content. As of today, it accounts for 16% of the overall budget. This inefficiency has an impact on the performance of your sales team and needs to be addressed.

By using next generation sales content management software, you have the ability to boost the performance levels of both your marketing and sales. It after all allows you to measure the marketing collateral usage. You should consider introducing these system and process how they are handling relevant content with your reps.

4. OPPORTUNITY WIN RATE

It is important to review the opportunity win rates you have as this will give you some additional insight into how your reps are closing deals. Their closing ability does have a direct impact on the sales performance. Some of your reps for example may excel with networking and the fine details of building a deal, but fail each time they reach closing the deal.

When you review this metric, you can begin to work with reps who are struggling with low opportunity rates. As you do this, sit with them on a call and help to coach them. You may see their sales performance increase as they gain a better understanding of what is necessary for them. It is even possible to recognize some of their strengths and teach them how they can rely more on those strengths and experience better results in the process.

5. AVERAGE DEAL SIZE

Another important metric to focus on is the average size of the closed deals. This is an area you really should be pursuing. As a manager you understand sales performance has many different areas to look at. Even when a rep doesn’t have a lot of sales closing, are they outperforming everyone else with the size of their deals. This area is important to look at because it may mean the rep is better utilizing their resources to deliver better results for the company.

While smaller deals are easier to close, they do take longer to reach the same levels as someone who is making constant large deals for the company. That’s why you can’t overlook this important metric.

6. SALES CYCLE METRICS

As part of your sales performance metric review, you’ll also need to consider the amount of time it takes to close deals. Pay close attention to the length of time it takes your team to close deals. You can then determine which deals are worth the time and investment and which ones are taking far too long to process.

As you do this, you’ll also have the ability to identify what bottlenecks your sales team is facing and have an action plan in place. Perhaps there is a need for more coaching, or there are hurdles that you really need to address. This includes focusing on things like what is lowering your closes and what is present in the sales you close compared to those that aren’t closing. When you have all this information in place, you can achieve better results.

7. COST OF SALES TO REVENUE RATIO

Finally, the cost of sales to revenue ratio is equally important to look at. With this, you’ll have the chance to boost the efficiency of your sales division. You can consider the costs of an employee’s salary, commissions and other elements and then consider the investments compared to the profits of the company. It’ll let you know based on where your company is headed whether or not the investments are worth being made. It can also help you identify problem areas and make changes as needed to help increase your overall level of success. After all, your sales department shouldn’t be costing you money, it should be earning it for you.

Gregg Swanson is a sales performance consultant and business coach and has authored several books and numerous articles on peak performance and creator of “Sales Strong.” Gregg specializes helping sales professionals develop mental strength for optimum sales performance. You can pick-up your complementary report, “The Most Critical Step in Sales” by going HERE. Also, pick up a copy of “The 6 Essential Factors For Business Growth” by going HERE