Tuesday, February 22, 2011
Three important sales metrics you're probably not tracking today
It’s easy to evaluate your sales team based on pipeline size, closed business, performance against quota. But there are other metrics you probably have access to already that can help you improve individual and overall sales performance. Here are three of my favorites.
First-Month Customer Satisfaction. One month in, most customers haven’t yet realized the value of the product or service. But they should already have developed an opinion of how well what they’re now experiencing matched the expectations set by the sales rep. If your sales team is selling right – setting the right expectations, selling on outcomes & benefits instead of features – the customer should know exactly what they’re getting into and have a solid satisfaction level even in the first couple weeks.
Average Selling Price vs. Team Average or Expectations. Simply put, is the average deal size from each rep living up to expectations? Is an individual rep performing better or worse than the team average? This is an important and often overlooked metric, especially in markets where small deals take just as much work to close as large deals. Your reps may feel good about closing the small guys, or feel good about closing the “back up” sale of a smaller product to a bigger customer, but is that where their (and your) time is best spent? Make sure your reps are going after big-enough deals.
Current vs. Previous Territory Performance. Sales teams too often ignore historical performance. They don’t use the precedents set in previous selling periods or by previous sales teams to predict or expect future performance. Let’s say you have an experience rep working a new territory or vertical industry. Is their performance dramatically different than what you saw from that territory previously? There may be good reasons – you may be saturated, or inventory could be low. But if you’re seeing significantly lower performance vs. what was previously achieved, it could be a sign that potential sales are somehow being left on the table.
Links to this post: