Sales Metrics are important when we talk about selling more and better. After all, if a business wants to sell more and better, it needs to have its processes optimized – and sales is essential.
To grow and be a reference in what you do, having the sales team’s time focused on selling well, to those who really have the potential to become customers, is vital to the long-term viability of any business.
For this reason, analyzing key sales metrics is the job every manager needs to do to fine tune the business process. And that is what this text is about.
Sales metrics: Which ones should I look at anyway?
Rampar sales is what the entire company wants, but doing it without the business process in tune is a difficult task.
That’s why we’ve separated 7 key sales metrics to watch out for, including improving the sales playbook. Check out:
Opportunities: Open and Lost
Having the size of how many opportunities each salesperson works at the same time is essential for:
- understand, within a week or a month, how many opportunities the salesperson has to work;
- new opportunities in the sales funnel,
By doing so, you can set a goal of opportunities that need to be opened for the chosen period. If they are below the desired, increase the prospect for, for example social networks like Facebook, and also the qualification of leads are exited.
After all, if a salesperson opens few opportunities in a month, he will probably not be able to reach his goal and this will impact the company over the medium term.
There is also a risk that the salesperson will open too many opportunities and thus let the leads cool down. Even if you have a good CRM to take action, you need to act assertively so as not to let the potential customer’s interest get lost.
Understanding the salesperson’s ability to successfully complete a sale requires knowing the number of missed opportunities for the entire sales team.
Having a sense of the average, you will be able to identify the problem. Are few opportunities generated? Really the seller can not close the sale? Can’t Leads Be Qualified?
By understanding what happens, you can look for the reason and then the solution.
This is one of the sales metrics that is tied to the topic above. Conversion rates show how many of the leads that joined each salesperson’s sales funnel actually became customers.
Taking an example, let’s say a specific salesperson had 200 opportunities throughout the month. Of these, 20 became customers. That is, your conversion rate is 40%.
Knowing how successful your sales team has been, you can tell if this is an acceptable number for your business – it depends on what you sell and to whom.
To increase this rate, within your CRM, see which stage of the funnel – and which funnel – your sales team has the most trouble no matter what.
Average Selling Time
From the first contact with the commercial team to the acceptance of the proposal. How long does a salesperson take to complete business?
Within CRM software, this time can be measured by the activity log. Sent emails and recorded calls serve not only to know how long this process took, but also how it took place.
So by looking at a good number of opportunities worked by multiple salespeople, you can understand if someone on your sales team is taking longer than usual to complete a sale and thus adjust the process.
The problem may be, for example, in the absence of lead information, especially about their pain so that the solution may have adjusted to it, making the speech assertive.
The more qualified the lead, the more information an SDR can extract, the easier it will be to sell. Therefore, a structured presales team is critical to any business operation.
If someone has shown interest in your service or product you may have also been interested in the competition.
For this reason, lead response time is very important.
Think for yourself. Would you pay more attention to the one who responds promptly and cordially to your request, or who, a day later, sent a shallow response without any indication of help?
Ok, you don’t have to answer – that was easy. Even because, according to a Harvard study addresses, salespeople who approach leads within 7 hours of the first contact have the highest sales conversion rates.
It’s easy, go… email, phone call, whatsapp.
Once the lead enters your presales funnel, why not have an automatic action scheduled? A triggered email offering your public calendar for a phone call is all you need.
Follow-up and contact: How are these fees?
The prospect needs to trust the seller. This is the basic starting point. The relationship needs to be good, but also the business team needs to be insistent – but without causing irritation.
Therefore, always being available to help, offering rich material to help you in any pain you have already identified, all this “ant work” is rewarded.
Can it take long? Can. But by showing awareness that the salesperson is an available person who understands the prospect’s pain, at some point he will stop and think of you as the ideal solution.
Follow-up is, yes, important. Even if it’s a “I miss you” email, giving him something of value or being available for a conversation already makes all the difference.
CAC, LTV, ROI
Customer Acquisition Cost, the so-called CAC, is nothing more than how much it cost each customer to get to your business.
To calculate it, let’s say you got 500 new customers within two months. Its spending in these 60 days was 6 thousand reais. So it’s easy: Divide 6,000 by 500 and you’ll know your company’s CAC.
To find out if your CAC is high, we enter the second item of this paragraph, the LTV. If this is lower than CAC, then your business is in trouble.
Customer Acquisition Costs need to be much lower than Life Time Value – this identifies the value each customer has left to your business over the period that they have consumed your solution.
ROI is the return on investment made. From English, Return Over Investment. You can calculate the return on what you invested to qualify your team to sell more.
ROI is calculated from: (Return on investment – investment cost) / investment cost.
Let’s get to numbers: Let’s say your current trading team result is $ 400,000 per month.
After a series of training, at a cost of $ 50,000.00, the application of new techniques causes monthly sales to double, reaching the value of $ 800,000.00.
Thus, we will have: (400,000 – 50,000) / 50,000 = 7. That is, for each real invested we have a return of $ 7.00. That is: the return on investment was 700%.
Last but not least, the sales cycle. This is the total time it takes the customer from the first contact with your company to checkout.
This sales metric is different from “average sales time” because it is about contacting your company as a whole, such as filling out an eBook download form.
This is where marketing and sales work together.
This metric takes into account the average time per meeting, meetings held, and all sorts of processes required to gain the opportunity.
By the way, the time invested in each opportunity is directly linked to sales success. If the lead is too long in your sales funnel, then it is likely that they will not choose you to solve your problem.
By taking care of these sales metrics you can improve the business process and sell more and better.
So how can we help you?
We talk about CRM in this article, but do you know what CRM is?
Enjoy and also read our article on how to identify where your sales process fails.
A hug from CWT, your CRM. #RunCWT