Key Performance Indicators You Should Keep an Eye On
As a sales manager, it can be frustrating to determine the most useful and effective ways to measure your team. Not only that, but you also want to know exactly what you should be measuring. You want to make sure your analysis supports your overall goal — making sales! These Key Performance Indicators (KPIs) shouldn’t be viewed as a hunt for the worst, but the best ways to measure what your team can improve upon to make your company successful.
Below, we discuss a few key performance indicators worth paying attention to.
1. Contacts and leads. Doesn’t it all start here? Pay attention to where new leads come from in addition to how many you
see total. Are certain areas more successful than others? Use the information here to inform your decisions in the future. It may not be that you need more salespeople, but a better quality of leads.
2. Conversion/acquisition. This statistic determines at what rate a lead becomes a customer, based on the amount of new customers divided by the number of leads. This is a good way to measure the efficacy of your methods, too. Comparing cold calls to in-person interactions can be useful information.
3. Opportunities. Pay attention to the opportunities where someone on your team reaches out to a client with a specific proposal based on the client’s need. These qualified opportunities come with a dollar amount, so be sure to measure that, too.
4. Lead response. How quickly are your leads being responded to? The quicker you can see a response to an inquiry, the greater your chances of conversion.
5. Customer retention. How well are clients being followed up with? Compare the number of clients who purchase multiple times against the number of clients who are not repeat customers. This speaks to how effective a sales team member may be.
6. Utilizing marketing. How are your team members using the resources available to them? Directing customers to your marketing collateral can provide leverage for a sale. Tracking how your team uses your marketing materials can be useful to see how many conversions are made from those interactions.
Which of these KPIs do you need to pay more attention to?
Copyright 2016 Viral Solutions LLC
by Thomas von Ahn | Chief Elephant Slayer
We help overwhelmed small business owners duplicate themselves – so business can be fun again.
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