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Top Three Metrics to Drive Sales Performance

by dmrindahl ‎09-16-2010 05:12 AM - edited ‎09-17-2010 06:38 AM (2,608 Views)

Keeping sales professionals motivated and focused to exceed their revenue objectives can be challenging. However, it’s not impossible so long as you have sales metrics readily available to use as a coaching tool. It’s important to have these metrics updated frequently and always available so they can stack rank themselves against their peers. This knowledge allows them to understand their strengths and focus on opportunities. Thereby, allowing their natural competitive spirit to drive performance upward. 

 

Below are the top 3 metrics I use to drive sales performance.

 

#1  Total Revenue

  • Why: This allows sales professionals to track where they rank amongst their peers and makes them brutally aware how far ahead or behind they are against their revenue goal. Top performers are naturally competitive and strive to be #1. 
  • Coaching Tip: Send out daily stack rankings to emphasize revenue performance.  Call out the top performers in front of their peers and watch as the rest of the team works to become #1.
  • Frequency: This metric should be available daily.

 

#2  Average Selling Price

  • Why: This raises awareness of how much they are up selling and bundling other products and services per transaction. If this metric is lower than average, then the sales professional is missing revenue opportunities and is likely not asking the right “explore the need” questions. As a Sales Manager it is important to know that your sales force is taking advantage of every opportunity made available to them.
  • Coaching Tip: Sit with your sales team, listen to calls, and coach them to maximize their bundling and up selling opportunities by ensuring they explore the need and detect buying signals.
  • Frequency: This metric should be available weekly.

 

#3  Closing Ratio

  • Why: This is a great metric to track as it increases awareness of success rates and showcases likelihood of closing a sale. Many variables can impact a sales professional’s closing ratio and it’s the Sales Manager’s responsibility to help sales professionals improve this metric. Closing ratios can be impacted by several variables; such as, product knowledge, persuasion skills, confidence, credibility, verbal skills, friendliness, ability to build rapport, ability to properly explore the need, and identifying the best product and/or service for the customer.
  • Coaching Tip: Send out a mid month and end of month report. Spend time with the sales professional during the sales process to figure out what is preventing them from closing more sales. Use a role-play method to help improve their sales skills. As you coach your sales professionals you should see their closing ratio increase.
  • Frequency: This metric should be available bi-monthly.

 

It’s important for all sales professionals to know if they are above or below average, or just average, when ranked against peers in a similar job. This allows them to set goals to improve their below average or average metrics; which in turn, will increase sales and revenue.

 

Metrics alone will not drive performance; however, leveraging metrics to coach sales professionals is a powerful way to drive sales performance.

 

Happy Selling!!

 

Dione Rindahl

Comments
by muff1369
on ‎09-16-2010 05:58 AM

After spending 11 years as an inside sales rep at Sage, I will have to totally agree with these metrics.  We all thrive on seeing our name on top of the list when the revenue rankings come out.  And the easiest way to get there is by upselling and including those add-ons in order to make the average sales price larger.  We are all here to accomplish a goal, and having multiple closing techniques in order to improve your close ratio is going to get me to this goal.  Overall, a great article that will bring much success to a sales team!!!

by Silver Elite Contributor
on ‎09-16-2010 06:05 AM

Just a shame items #2 and #3 are not easy to see in ACT!

by Bronze Super Contributor mscott821
on ‎09-17-2010 06:27 AM

Ave. Selling Price and Close Ratios can be obtained via Act!'s SQL Dash component w/o too much effort...

by dmrindahl
on ‎09-21-2010 12:35 PM

 

Hi Jeff,

 

Great point!

  

I spoke to our product development team about the possibility to have fields in ACT! that will automatically calculate these types of metrics in any of our future releases. As of now, they are not going to offer this in the traditional “in-product” way, rather they are looking at potentially bundling an add-on that offers calculated fields, perhaps at a lower price if the add-on is purchased separately. Stay tuned... Thanks for the feedback!!

  

Dione Rindahl

 

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