By looking at your sales cycle length, you can spot bottlenecks and inefficiencies.
Your percent achieving quota lends insight into why your salespeople are underperforming. If a number of your sales staff consistently miss their quotas, this could be a symptom of problems with expectations, management, training, or even hiring practices, all of which are more closely related to sales performance than you may think.
Beyond that, your opportunity win rate is a way of calculating the human element that makes each salesperson different in their strengths and weaknesses. With this data point, you can analyze who’s best at each stage of the sales process. From there, you can target individuals for retraining in specific areas, such as closing or pitching.
While it’s not news that the ability to close can be measured, revenue numbers also have their own story to tell. However, that story often has a surprise ending.
Take, for example, average new deal size. You’d think it’s a good thing for a salesperson to close a lot of deals. But how big are those deals?
Is there a real return, or are salespeople incentivized to focus their time on small, easy-to-close deals?
And what about the customer’s point of view: Does your pricing encourage a certain type or level of purchasing?
A salesperson may believe their job is all about finesse and personal connections, but it must be more than that. The numbers that answer these questions will have a real impact on how they develop and capitalize on those connections.
Furthermore, metrics help sales managers mold their team into A players. They learn what works, what needs to change, and how to train lower performers to achieve at the same level as high performers.
Make Friends with Marketing
Sales managers potentially leave money on the table when they can’t clearly see how other departments within the organization affect their positions or departments. Just as your sales management platform can help you pinpoint an actionable link between hiring practices and sales quota performance, your metrics can also highlight an opportunity where sales and marketing overlap and work together to help leads progress through your funnel.
According Elisabeth Sullivan in an article for the American Marketing Association, the vast majority of marketing content goes unused by sales departments. Marketing platforms provide lead and performance data, as well as important information about each customer’s journey. Sales and marketing must work together at every stage in the sales process.
Fix the Funnel
Where are sales and marketing working together to find the leads who become customers? How can you reach more of this type of lead? You need to monitor this data.
Do you know how many leads are marketing qualified leads (MQL) versus sales qualified leads (SQL)? How many SQLs do your sales team follow up with? You need to know and monitor these numbers, too.
Define Your Funnel and Understand Where Your MQLs and SQLs Are
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