A sales job involves a lot of pressure to meet your quota and produce results. If the targets are not met, sales management will have to take the responsibility. Sales managers are held responsible for the performance of their teams. Sales Management Software helps you to ensure that your team is meeting quota, closing enough opportunities and driving revenue by measuring sales activity and performance closely. Measuring and analyzing metrics give you insights into your team’s results and identify and fix broken links in the chain to continue performing at a higher level.
To ensure that you are getting maximum insights from your sales management software or Sales CRM, you can track the following metrics.
1. Win rate: Win rate or close rate refers to the percentage of opportunities that are won by sales. It is the percentage of prospects that sales have accepted and opened an opportunity for those converted to customers.
There may be various reasons responsible for not being able to increase your win rates. They may be:
- Lack of product knowledge needed to close the deal by your sales team
- Lack of rapport between your reps and prospects
- The sales team is not able to fully understand the prospect’s use case
- Your reps may not be focussing on building a customer relationship, but focusing only on closing the deal
- Your marketing team may be qualifying leads too soon
- Your reps may be pushy, one big reason to turn off for prospects.
The main reason top decision makers back off is the lack of rapport between them and the clients and establishing trust with them.
2. Sales funnel analytics: Analyzing the state of your sales funnel provides deep insights into the performance of your sales team. It allows you to identify bottlenecks that are preventing leads from moving from one stage of the funnel to the next. With that insight, you can further understand the root cause of those bottlenecks. You are still not delivering the right content at the right time. This is why you should map your content to the various stages in the buyer’s journey.
- New leads don’t expect to see product sheets and sales pitches. Providing them educational, inbound content that solves their problems builds trust and enhances branding. Deeper in the funnel, you can start pitching your product.
- Your sales team might be slow with following up with the leads, which might end up engaging them with the competitors. This might make them get stuck at one stage of the sales funnel with decreased chances of moving into the next stage.
Analyze the reasons for your losses to gain insight and fix issues. Keep leads progressing through the funnel towards conversion.
3. Win vs. Loss rate: You can easily measure this metric if you use your CRM tool with powerful metrics and reporting capabilities. Win vs. Loss rate is the percentage of opportunities won vs. those lost. If your team is losing more deals than they are winning, the reasons listed under “Win rate” are all potential for a high loss rate.
Another added benefit of measuring loss vs. win rate is that with huge sales management software, you can assess individual lost opportunities and the reasons why they were lost. This insight is invaluable.
4. Sales Pipeline Analytics: While funnel analysis focuses on all the leads and the position they are at in the buyer’s journey, sales pipeline analysis takes into account the number of open opportunities as well as the rate at which you close them. Once you know the average win rate over the past few months, you can use the pipeline analysis in order to predict the future revenue, depending on the number of opportunities that are likely to be won. Tracking the opportunities also help sales managers in assessing the performance of individual sales reps.
If a majority of open opportunities belong to one rep, you have a problem. You should see an even distribution of opportunities across all your reps. Some might overperform while some might underperform. Pipeline analytics helps you to identify reps who need help improving their results. You might as well ask the overperformer to mentor the struggling rep by pairing them up.
5. Customer Retention rate: It is easy to retain an existing customer rather than acquiring a new one. Maintaining high levels of customer satisfaction helps you reduce your customer churn rate. You are able to track calls of individual sales representatives if your sales management software supports advanced telephony capabilities. These capabilities allow you to track and record sales calls and hold the reps accountable for keeping up their end of the bargain.
6. Track activity metrics: This refers to the numerical goals for qualified leads, phone calls, meetings, proposals, etc., for each sales rep. Your CRM automatically tracks these metrics for sales managers. You can also use this metric to set quotas, which will help you maintain insight into your team’s performance in the future.
Measure your sales management metrics using all in one Best CRM, including sales management software, marketing automation, and customer support. This will improve the efficiency of workflow and improve productivity.