What are Those Sales Metrics That Actually Matter?
Sales Metrics, a collection of performance indicators and ratios, be it individual executive’s or organizational data. To mention this, it is as simple as that, but when you actually need to understand and know what those “Sales Metrics” and how they impact your business is just like diving into the ocean.
You get plenty of suggestions or results for searches. Though none of them can be denied, considering all those is also not worth your time and money. So let’s see what those basic sales metrics a business should work on right now to make their executives more efficient in closing the deals and retaining the customers.
Every manager has to regulate and monitor the way the sales executives plan their work and execute it. A better way to utilize the time is by having an extraordinary planning about how to close the deal in a short while. The basic and the most important aspect an executive must know while doing a business is, Has he approached the right prospect in need of his product, If yes then how best is the proposal for him to buy your product. Proposals should be very much customized depending on the prospect and just don’t share a demonstration of your products/ services as nobody has time to look into things that doesn’t interest them.
If these things are proper, then the only thing you must be concerned about is the pricing you have placed for the prospect. Know the market trends and current value for whatever you are selling. Too much of a hike in the price just because you provide good quality? Nobody prefers that! Try to put forward the optimum pricing possible.
Most of the representatives fail to listen to what the other person says, which is where they lag behind in closing deals.
The closing ration or typically a “Win rate” in sales is the percentage of the deals you close for the no. of prospects you have contacted. For ex: if a sales representative closes 10 deals among 100 calls he makes, his win rate will be 10%. Small changes in these ratios reflect huge growth in sales and revenue for the company. The overall win rate of the sales team will be directly proportional to business growth.
Closing Ration and the transformation from prospects to customer are the only things to matter in sales.
Typically a sales lifecycle takes up to eight weeks to convert lead prospects into customers; if it is taking more time, you should be ignoring it from now, as the probability of closing the deal is too low. Many of sales people doesn’t consider the sales lifecycle as a metric itself. Yes, it is always important to know and analyze the pipeline metrics quality of your interaction with the customer, repeat business rate, win rate etc. It is important that a sales rep should be aware of how long does a lead take to close the deal, if not it results in wasting both of your time.
Applying these metrics to every business, a team should be mostly aware of its win rate. Every sales team should understand the metrics and customize it to apply or their needs and follow the organization’s goals and team’s strategy to go hand in hand.