‘Sales’ is a science. ‘Sales’ is also an art. Rather in encompasses free-thinking, logic, emotion, processes and people. Every successful VAR needs to understand and master the science and art of managing sales organization in today’s highly competitive world. If you want to manage it, you need to measure it. Identifying the key sales performance metrics which will be helpful to assess sales reps is an essential step for every VAR business.
Studying key sales performance metrics is an integral aspect to enhance the performance of your reps, understand and get on the top of all opportunities in the sales pipeline and manage the state and shape of sales funnel effectively. You can maintain better control over activity and sales performance. By focusing on specific key areas, sales performance and revenue can be improved in an effectual way.
So let’s have a look at important sale metrics essential for success.
Time spent selling
Time is the most integral commodity when it comes to reps. Invest your time to measure how much time your reps are actually spending selling. This will help you identify any issues that are plaguing sales performance. Determine roadblocks and try to eliminate them. Thus, if your reps are struggling to find relevant content or if content recovery problems are affecting your sales performance or searching information, then you need to think about tools to save time and perk up sales performance.
Lead response time
In today’s highly competitive business world, growth in inbound marketing clearly spells the focus of prime companies and that is to generate new leads. Certainly, a speedy response is crucial, as the lifespan of online leads is relatively short. If your company tries to contact a lead within 60 minutes of the initial query, you are more likely to qualify the lead. A speedy response can improve the performance of your team significantly. You are more likely to mark your online presence and develop new leads.
Marketing collateral usage
As stated by the American Marketing Association (AMA), 90 percent of marketing content is not used by sales. On the other hand, as stated by the Information Technology Services Marketing Association, investment in content marketing is witnessing the rise and is accounted for 16 per cent of the overall budget. You need to address this, as this type of incompetence can influence your team’s performance. By implementing sales content management software, you can improve sales and marketing performance levels. Furthermore, introducing processes and systems enable the marketing team to promote relevant information to sales reps can spell manifold benefits.
Opportunity win rate
Identifying and tracking the opportunities that bring in the most wins and revenue can help you have additional insight into how your reps are closing deals. As the closing ability of sales reps clearly influences the sales performance, you need to review this metric closely. Furthermore, this will let you focus on reps who are struggling with low opportunity rates. You may identify their strengths and gain a better understanding of what needs to be done.
Average deal size
this is another essential metric to focus on. As a VAR, you clearly understand different aspects of performance. This metric can help you promptly flag deals that may not be worth pursuing. Obviously, you don’t want your reps to waste their time. If you find that the average deal size is small, then you can review lead generation efforts. Finding out why reps are generating leads that finish up in smaller deals will help you determine ways to tweak lead generation and boost sales performance.
Sales cycle metrics
The length of time it takes your reps to close deals is an essential aspect of sales performance. This will help you identify deals that are worth investing the time and efforts. This will arm you with the ability to recognize bottlenecks faced by your team and having an action plan in place. As you can address numerous hurdles, you can attain better outcomes.
Cost of sales to revenue ratio
This metric reflects the overall efficiency of the sales division. This metric can help you measure the level of investment requires to attain a particular performance level. Gauging your cost of sales to revenue ratio against the industry average will help you check how your sales productivity levels stack up. You will get to know where your VAR business is headed whether or not the investments are worth it. Recognizing problem areas and making changes as required will help you improve your overall success level.
Though action and results-based metrics are pinpointing the health of your sales organization, employee satisfaction is an important aspect of measuring. Undoubtedly, happier reps are more likely to work productively. They also have a propensity to close more deals better.
There are various other measures like specific action metrics, sales funnel leakage, the frequency of new volume added to the pipeline, conversion rate by sales funnel stage, percentage of qualified leads and lots more. Some metrics probably won’t be important to your company. Think about your VAR business and sales strategy, process and methodology that work for your business, focus on important sales performance metrics that will ultimately boost your sales.
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To know how to close deals faster, read the following blog: