Types of Sales Metrics to Track. Metrics are a fundamental parameter for every business. It is because it is a defined measure to benchmark your efforts and outcomes. To ensure your team is on the right track and is also a measure that can be improved.
For example, in Q1, a sales rep did six closures & in Q2, he did 10. Here the metric is the sales rep’s sales closures & as we can see, it can be measured. Similarly, the other parameter can be measured, which we will discuss in this blog article.
Every sales team must track the crucial metrics to evaluate the work performance with accuracy, skills, and visibility among management for planning and reporting. Some companies know its importance but fail to understand and utilize it in a meaningful way. As mentioned, various factors are depending on your company size to choose from. Let’s begin.
What are Sales Metrics?
Sales metrics, in simple terms, are data points that display the performance of your individual sales reps or a sales company. They are often used by sales managers or sales coaches to track progress, find issues, and better performance in the upcoming months. Essentially, sales metrics strive to drive sales teams on the right path allowing them to recognize problems in the sales process, increase their revenue, and remain aggressive in today’s marketplace.
Types of Sales Metrics to Track
The KPI for Sales:
This parameter is essential because it allows companies to measure their overall performance. The sales managers depend on this parameter to make sound business decisions. It gives them an indication idea for gap identification for product-market & the respective sales rep’s ability. The total revenue achieved is yet another standard parameter divided down to revenue by-product, the rate of revenue from new business, or revenue by market. Lastly, the year or quarter-by-quarter growth in the sales figures is another popular parameter. The sales managers and sales leaders track to find out how effective the sales team is performing.
The coaching metrics:
Many companies make a good investment in sales enablement programs. Without a robust sales enablement strategy, it isn’t easy to successfully run a sales team. Hence, sales coaching is not valuable to those in sales & anyone involved in sales enablement. So, why is this metric vital? Well, coaching and training can answer essential questions such as the following. What is the spend on training? How is the sales performance during and after training? How is the allocation of time done? Are the gaps minimized? Besides, the sales companies are required to be cognisant of engagement metrics with coaching and how skilled the sales reps are with that content through evaluations, tests, coaching sessions, and missions. Once these figures are in place, you, as a sales manager, can tune in to your coaching session to make sure they’re as efficient as possible.
The pipeline metrics:
A sales pipeline is nothing but a visual display or an infographic creative to showcase the prospects and their respective sales cycle positions. It is like a map drawn regularly. To identify gaps in prospects, closures, and new client pitches. Through this, sales managers can enable access to knowing success through the sales pipeline, providing insights to the company through the sales pipeline’s position. The length of the sales cycle in the channel is equally essential. It is nothing but the amount of time a sales rep takes to initiate an interaction. With a buyer and when the deal gets close or converts to a sale. The shorter the cycle, the better the matrices. Lastly, the win rate is another vital aspect of the sales pipeline metric. Win rate is one key pipeline metric. It displays the percentage of possibilities proposed that sales agents won based on the options that enter the proposal stage, rather than all the pipeline ones. It explains a sales team’s achievement and shows sales managers how to stage sales reps to have the most challenging converting opportunities.
The Hiring Metrics:
A successful hiring requires good talent onboarded in the team. The hiring process can be tedious, but it is imperative for its overall success. Every sales manager or business owner while hiring must have a specific criterion in his/her mind for selecting or rejecting the candidates they interview. Hence, choosing the right candidate for your sales team is vital as it directly relates to your sales performance. Sales ramp-up time is one example of hiring and onboarding metrics. It shows the average time it takes for new sales representatives to be ultimately productive. Sales managers can use this number to make the ideal organizational decisions and set realistic expectations for new representatives. The work productivity should be calculated to record and note the ratio of sales to target capacity. Then one can figure out the exact financial impact of a percentage increase/ decrease in your sales productivity. The progress of new hires and the path to retention are also beneficial. These were the 4 core Types of Sales Metrics to Track which you learned through this blog article.