There are thousands of metrics that can help you indicate sales performance. Don’t waste valuable time attempting to keep track of every single metric available. Here are 5 important sales metrics you should be tracking.
1. Conversion Rate
How many leads or opportunities generated one sale? This can be answered by tracking the conversion rate.The conversion rate is a key metric that will help you understand your sales’ team performance. As a sales leader, you need to make it a priority to coach your sales team to increase the conversion rate.
2. Average Sales Length
Sales length is the average time it takes to nurture a lead into a customer. Measuring your average sales length will help your sales team identify potential customers and at-risk opportunities. If a prospect has been stuck in the pipeline much longer than your average sales length then that prospect is probably not making a purchase.
3. Average Deal Size
Keeping track of the average deal size will help you gauge the type of deals your sales team is focusing on. Your sales team might be focusing on smaller deals because they’re easier to close and they want to close as many deals as possible. When this happens, your sales team is leaving more profitable deals on the table. If your average deal size is small, coach your sales team to increase the deal size instead of increasing the number of sales.
4. Prospecting Activity
There are several sales activity metrics you should be measuring such as the number of outbound dials, conversations and discovery and closing meetings with potential customers. Sales activity metrics will help you identify top sales performers on your team. Utilize your top sales performers to work alongside and coach your lagging performers.
5. Retention Rate
All companies no matter the size benefit from having a large influx of new customers. However, your sales team should also be giving a lot of attention to retaining current customers. Current customers are already invested in your company and are likely to make more purchases. Coach your sales team to capitalize on the loyalty of current customers to increase sales.
Keeping track of these metrics will help you improve sales for your company. Remember you won’t improve what you don’t measure.
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Founder of RedRock Leadership