Sales metrics are important when it comes to selling more and better. After all, if a company wants to sell more and better, it needs to have its processes optimized – and the sales process is essential.
To grow and be a reference in what you do, having the time of the commercial team focused on selling well, to those who really have the potential to become customers, is vital for the long-term viability of any business.
For this reason, analyzing the main sales metrics is the job that every manager needs to have to fine-tune the business process. And this is what this text is about.
Find out which sales metrics you need to analyze and understand the importance that good CRM software has in this function.
Sales metrics: which ones should I look at anyway?
Rampar sales is what the whole company wants, but doing it without the refined business process is a difficult task.
For this reason, we have separated 7 important sales metrics to be observed in order to even improve the sales playbook. Check out:
Opportunities: open and lost
Having the dimension of how many opportunities each salesperson works simultaneously 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 this, it is possible to define a target of opportunities that need to be opened for the chosen period. If they are below the desired level, increase the prospecting for, for example, social networks like Facebook, and also the qualification of the leads are exited.
After all, if a salesperson opens few opportunities in a month, he probably will not be able to reach his goal and this will impact the company in a medium period.
There is also a risk that the seller will open up too many opportunities and thus let the leads cool. Even having a good CRM to execute the actions, it is necessary to act assertively so as not to let the potential client’s interest be lost.
Understanding the opportunities missed by salespeople is another important sales metric.
To understand the salesperson’s ability to successfully complete a sale, you need to know the number of missed opportunities for the entire sales team.
With a sense of the average, you will be able to identify the problem. Are few opportunities generated? Is the seller really unable to close the sale? Leads fail to be qualified?
Understanding what happens, it is possible to search for the reason and, later, the solution.
Taking an example, let’s say that a specific salesperson had 200 opportunities throughout the month. Of these, 20 became customers. That is, your conversion rate is 40%.
Knowing the success rate that your sales team had is possible to know if this is an acceptable number depending on 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 in which funnel – your sales team has more difficulty, no matter what.
Average sales time
From the first contact with the commercial team until the acceptance of the proposal. How long does it take a salesperson to complete business?
Within a CRM software, it is possible to measure this time due to the activity log. Sent emails and recorded calls serve not only to know how long this process took, but also how it occurred.
Then, by analyzing a good number of opportunities worked by several salespeople, you can understand if someone from 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 information from the lead, especially regarding his pain so that the solution may have adjusted to him, 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 pre-sales team is essential for any commercial operation.
If someone has shown interest in your service or product, they may have possibly also been interested in the competition.
For this reason, the lead response time is extremely important.
Think for yourself. Would you pay more attention to the person who responds quickly and cordially to your request, or who, one day later, sent a shallow response, without any indication of help?
Okay, no need to answer – that was an easy one. Even because, according to a Harvard study addresses, salespeople who approach leads until 7am after the first contact are the ones with the highest sales conversion rates.
It’s easy, go … email, phone call, WhatsApp.
Once the lead enters your pre-sales funnel, why not have an automatic action scheduled? A skyrocketed email offering your public agenda for a phone call is all you need.
Follow-up and contact: how are these fees?
The prospect must trust the seller. This is the basic starting point. The relationship needs to be good, but it is also necessary for the sales team to insist – but without causing irritation.
For this reason, always being available to help, offering rich material to help you in any pain that you have already identified, all this “little ant work” is rewarded.
Can it take? It can. But, showing notoriety on the subject, that the seller is an available person, who understands the prospect’s pain, at some point he will stop and consider you as the ideal solution.
Follow-up is, yes, important. Even if it is a “I miss you” email, handing him something of value or showing himself available for a conversation makes all the difference.
CAC, LTV, ROI
To calculate it, let’s say that you got 500 new customers in two months. Its expenditure in these 60 days was 6 thousand reais. So it’s easy: Divide 6 thousand by 500 and you will know your company’s CAC.
To find out if your CAC is high, we enter the second item in this paragraph, the LTV. If this is less than the CAC, then your company is in trouble.
The Customer Acquisition Cost needs to be much lower than the Life Time Value – this identifies the value that each customer has left for your company over the period that he has 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 based on: (Return on investment – cost of investment) / cost of investment.
Let’s go to numbers: let’s say that the current result of your commercial team is R $ 400,000.00 monthly.
After a series of training sessions, at the cost of R $ 50,000.00, the application of new techniques causes monthly sales to double, reaching the amount of R $ 800,000.00.
In this way, we will have: (400,000 – 50,000) / 50,000 = 7. That is, for each real invested we have a return of R $ 7.00. In other words: the return on investment was 700%.
For this metric, the average time per meeting, meetings held and all types of processes necessary to gain the opportunity are taken into account.
In fact, the time invested in each opportunity is directly linked to sales success. If the lead is stuck in your sales funnel for a long time, then it is likely that he will not choose you to solve your problem.
Taking care of these sales metrics it is possible to improve the commercial process and sell more and better.
So, how can we help you?
We talked 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 PipeRun, your CRM. #RunPipeRun