Measuring your Sales Performance in 5 simple steps
17 Sep 2017
How To Measure Your Sales Performance?
- Sales cycle length
Very simply, how long does it take to close the deal? Generally a shorter sales cycle = more time for more sales, so it’s important to bring this cycle time down to as short as possible.
When looking at your sales team as a whole, this advice helps you measure the overall efficacy of the methods you’re using and the quality of your sales leads. When looking at individual sales team members, it can be used to identify who is closing deals in the shortest time - and how that can be replicated across the team.
What Is A Sales Cycle
Pay close attention to the the average length of your sales cycle over time. That average should remain steady and if there are any sudden changes, it’s worth having a look at all the factors that might be causing that change.
- Quote to close ratio
This is the number of quotes sent out compared to number of deals closed or orders received. This ratio is a good indicator of whether or not you are targeting the right potential customers, pricing correctly on project work, or marketing correctly. Measured on an individual level of each member of the sales team, it reflects performance, and efficiency in the closing process.
How To Improve Your Sales Conversion Rate
- Opportunity 2 win improve your conversion rate
This is the measure that takes all the opportunities / enquiries identified and tracks how many of them end up as a sale. Use this to ensure that no valuable leads are slipping through the cracks and you fully know your conversion rate.
- Average sale size per salesperson
Tracking the average deal or sale size per salesperson is a metric you can use to track the individual performance of your sales team members. On a higher level, this metric can be compared to your budget and helps you evaluate the quality of leads and whether you’re targeting the right sector.
- Volume of sales by location
Do you sell better in one location than another? A variety of factors can go into why your products sell better in certain locations; anything from performance on the sales team’s side to demand for your wholesale product can influence this volume. However, keeping track of these volumes helps you figure out fit for the market, and performance of your sales team within that market.
- Volume of sales by product line
This metric simply tracks your different product lines and how well they sell. This can also vary by location or sales team, and is valuable information for product development down the line.
Hire A Sales Expert To Increase Sales
- Percentage of sales team members achieving quota
This is a high level metric, which looks at the overall percentage of sales team member who achieve their budget each month. By looking at the sales team as a whole, you can identify any areas that need improvement, and can see how realistic and achievable your sales targets are.
- Product performance
Product performance helps you keep track of what products are selling the best, or where you should direct your main sales and marketing efforts. When tracking this metric, it’s important to take into account activities within other departments of the company that could be affecting it. For example, if you’re putting more marketing efforts into a certain product, or if seasonal activities could be having an effect. Know your markets, Know your products.
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Kieran Perry is a top business consultant and sales mentor offering business coaching and sales training to individuals and companies across the UK.
His services include independent business advice, business coaching, sales training, executive mentoring and management consultancy to business owners, directors, start-ups and individuals across the UK and online. To read more on his business advice view his Blog for more business strategies, or see his Pricing, or Reviews . Follow Kieran on Instagram.