As a sales manager who has the great joy of managing a remote sales team, tracking rep performance with sales metrics is now as crucial as ever.
Remote working means I only have sales metrics to rely on to determine how productive any one of my sales reps is on a given day.
Put more directly, I live and die by sales performance metrics.
To establish just how productive a sales rep is, different sales metrics need to be tracked depending on the role, the product or the type of company the sales rep is selling for.
There isn't a one size fits all approach.
For example, I once had a target of $67k per month when selling document solutions. However, my average deal size was $14k, with a closing ratio of one in four. Therefore I had to have twenty deals on the go to hit my revenue target.
When booking appointments as a BDR, I converted one in seven conversations into a meeting. With a target of twenty bookings per month and a 25% cancellation/reschedule rate, I had to book twenty-five meetings per month, which meant I had to have fourteen conversations daily to hit my target. With these metrics in mind, I managed to book thirty meetings in one month.
I love sales metrics because it removes the emotional element many sales reps get caught up in when selling. Unfortunately, emotional selling leads to stress and poor performance, which isn't advantageous for anyone involved.
As long as my sales team focuses on the metrics, the successful results should fall into place.
Below I'll share with you some of the best sales performance metrics to better understand what changes need to be made to drive further success across your team.
Sales Activity Metrics
Sales is a numbers game, and it's only through consistent activity that positive results can be achieved. By implementing top-of-funnel sales activity metrics, you'll gain good insights into how much action is required to generate a specific outcome.
Not having enough conversations? Make more dials. Not making enough dials? Discuss time management with the rep who is falling behind.
Sales activity metrics track the amount of activity a sales representative completes daily in order to help sales managers make decisions that can influence overall sales results.
These metrics would be typically beneficial for members of your outbound sales team, such as business development representatives or sales development representatives.
Activity metrics may consist of any of the following:
Top-of-funnel metrics should be reviewed daily, weekly and monthly to ensure that the sales team stays on track and hits their quotas. If a sales rep isn't meeting their metrics, discuss what is holding them back and what needs to be done to increase their performance.
Sales Pipeline Metrics
The sales pipeline is equally essential for sales performance metrics. You can identify potential problems by tracking how many opportunities are in each stage of the sales process. For example, suppose you have a high number of deals stagnating in the proposal stage. In that case, it may be due to a lack of follow-up or the quality of the proposal itself. By tracking these metrics, you can make changes to your process accordingly.
The sales pipeline metrics should be reviewed daily, weekly and monthly. By tracking the sales pipeline, you'll know how much revenue will come in and when. These metrics are also helpful for forecasting purposes.
Some things to consider when tracking the sales pipeline sales performance metrics are:
Both sales activity and pipeline metrics should be reviewed regularly to ensure that the sales team is on track to hit their targets. For example, suppose either metric falls below your company benchmarks. In that case, it's essential to look closely to see what might be causing the issue.
Productivity Sales Metrics
Last but not least, productivity metrics. To be a productive sales rep, you need to balance your time wisely to hit the number of activities required to achieve the necessary sales result.
A few metrics can be used to measure productivity, but they will vary depending on the sales process and team structure. Here are a few metrics to consider:
Productivity metrics are essential to track as they help identify if a sales rep isn't hitting their targets due to poor planning or other inefficiencies. In addition, by monitoring productivity metrics, managers can work with their sales reps to help them improve and become more productive.
Many metrics can be used to measure sales performance, but the ones you track will depend on your business goals and objectives.
I mainly focused on sales metrics that directly impact rep performance for this post. Without an effective sales operation to bring business in, metrics like customer lifetime value, slip rate and churn rate won't mean much. However, you can more effectively drive results and improve performance by focusing on the inputs - which you, as a sales rep or sales manager, have complete control over.
Matt Jennings is Sales Professional with over seven years of experience across outbound, full cycle account and business development management, sales management, and sales operations. His sales experience has had him working Document, SaaS and Financial Services vertical markets and booking some of the world’s largest companies exceeding multiple billion dollars in turnover. In addition, he has experience selling across APAC, EU, UK and US regions. Matt now heads up Sales Operations at Sales Science and writes sales focused educational content at matjen.com.