Every company looks for the different ways to increase its revenues. How are you planning to edge past your competitors?
The amount of revenue you generate depends on upon different factors, including the strategies used, the product you’re selling, as well as your marketing efforts. It’s the sales team and the sales marketing strategies that you use that can make a considerable difference at the end.
Understanding Sales Metrics – Making Informed Decisions
As a business, you would see your sales increase and decrease at times. If things aren’t going the way it should be, it’s important to identify the problem.
And that’s exactly where your sales metrics can help. Understand how you could improve the parameters to boost your sales. Here, we have listed some of the most important sales metrics that will help you in analyzing your performance.
1. Optimum Time Utilization
Your customers wouldn’t wait for you. You need a marketing team, which can reach out to your customers and close in on the deal as soon as possible. The lower the time, the better.
Monitor the time spent by the sales representative (rep) on the deals. If the rep successfully closes the deal, analyze the time needed for it.
Check the number of opportunities handled by a rep in an interval. This will help you in allotting more leads to the sales rep.
The response time for a query is equally important. According to a survey, if you answer the query within an hour, it increases chances of converting lead by seven times. The more time you take to respond, the lesser are the chances for a conversion.
2. Sales Cycle
It is directly proportional to the time taken to close the deal. You can analyze different deals. Some deals will take more time to close while others will take less time – check on the parameters responsible for the deal to close.
Your aim is to close the deal sooner than later. When you analyze a sale cycle, you will know the number of leads to send a sales rep to help them perform to their best.
3. Analyzing Results
The results help us to take decisions regarding the future deals. Some deals are easier to close while others can be more difficult. Understand the common problems so that you can address them.
This includes understanding the strengths. Remember, different deals require a different amount of time investment. Consider working on the opportunities according to the time requirements.
Some of the sale reps are better with certain types of deals, and take less time. Some sales reps perform better with small deals while some are good at bigger deals.
Analyzing the types of deals a sales rep closes quicker will help you to assign similar deals to them, to enable faster conversions.
Allot deals according to the ability of the sales rep. In addition, identify the weaknesses, and work on them. It will strengthen your team, directly or indirectly, for the future dealings.
Teamgate has a perfect insight tools for all the most important metrics your business needs.
4. The Deal Size and Amount
If you find that the majority of deals are smaller amount deals, it’s important to identify the problem. You need to work to bag in bigger deals. That’s where Teamgate can also help you – with the most important deals view, you can see a clear picture of deals you need to focus on the most.
While the deal size is important, the other question is the number of deals you have in queue. You don’t want too many to avoid missing deadlines – but you do need some to keep your employees engaged.
As a manager, work hard to attract as many deals as possible. If you’ve too many deals in queue, it’s a happy problem that you can deal with and increase your team size.
5. Cost to Revenue Ratio
Don’t just look at generating revenues – instead, look at the cost to revenue ratio as well.
Calculate the costs of your inputs like salaries, expenses, marketing costs, commission rates, and the total revenue you earned from all the deals. This will provide an insight on how to manage your investments.
Optimize your investments – it will help in boosting the efficiency of your team and garnering maximum productivity.
Doing More by Looking At the Sales Metrics Data
The aim is to be able to harness the power of your sales representatives. You can achieve this by managing your time efficiently, allotting opportunities according to rep’s capability, boosting the morale of your sales team, and maximizing net revenue.
There are other factors as well including the lead response time. The quality of leads will always matter and the marketing team can help you get the perfect leads who are interested in your products. You can even keep a track of the number or percentage of opportunities you are winning. For every ten opportunities that you are getting, how many have you been able to successfully convert? Aim to improve the opportunity win rate.
No matter what business you’re in, focusing on these metrics will surely yield better results and help improve overall performance.