How to Measure Sales Team Performance
[vc_row][vc_column][vc_column_text]Continuous monitoring of your sales team’s performance on the revenue front can help your company improve its bottom line. Knowing who is performing well and how close you are to closing a deal gives you a better idea of how you will meet quota or whether you will need to have some reps pull back and focus. Here are a few standard measurements that can help track your sales team’s performance.
It is important to set some earning goals (at the individual and team levels,) to start measuring performance. Having well-defined goals will kick-start the monitoring process. Regular reports, compiled on a weekly or monthly basis, can help you understand your team’s performance. It also acts as an indicator of whether you need to push them harder; if they’re regularly exceeding their targets, your targets may be too low. On the other hand, if no one seems to be meeting their targets, it may point to the larger issue of team ineffectiveness or irrational goals.
Review Retention Rates
You have heard it before: it costs more to acquire a new customer than to sell to an existing one. Your existing customer base is where you can make dependable revenue, so retention is as important as generating new sales. If you see that a rep has managed to renew a contract, you know that he/she is doing something right. Plus, it indicates that the customer values your relationship, is satisfied with your brand and that the sales representative has successfully managed the relationship. Understanding retention rates is as important to your company’s financials as new deals.
Not every single phone call or opportunity will bring in big bucks. Sales reps spend a lot of time nurturing and qualifying leads, trying to bring them into the fold and pushing them closer to a sale. There are many activities that take place within the funnel, which may seem ineffective, but act as building blocks to establishing a potentially profitable sale. It may take a while to see a direct impact on the bottom-line. Tracking these customer-building conversations and activities will help you understand how effective your sales reps tactics are and help evaluate overall effectiveness. The conversations that take place in the funnel fuel sales, and these should not be ignored.
Salesvue understands how important the conversation level is, and gives you insight into how your team is performing, every step of the way. It uses the data in the Salesforce CRM to give managers real-time information on conversion patterns, how many touches it takes to get someone on the phone, how many conversations it takes to get an appointment, how well each individual sales rep is performing and how well the team is performing as a whole. New sales, repeat sales, fresh leads, successful attempts, laggards – it’s all there.
For more information on the types of things your sales organization should be tracking, download our “4 C’s of Sales” white paper by filling out the form below: