Following sales indicators is essential to getting a better understanding of results and analyzing if the efforts being made in these processes are proving sufficient.
In addition to this, a manager can follow the performance of the sales force and learn what the team’s greatest needs are.
In today’s article, we’ll present some metrics that can — and should — be followed, and how they contribute to the improvement of department performance. Continue reading and find out more!
1. Number of New Opportunities
Concluding deals that are being negotiated is essential to reaching revenue goals.
However, if only the other stages of the sales funnel are developed, there will come a time when there are no more prospects to work on — which will mean that performance will be less than desirable for a given period.
Salespeople need to know how to divide their routines among these various stages in order to achieve good results in all of them. This will make it possible to understand the performance of each member of the team in generating new sales.
2. Average Ticket
This is one of the most important sales indicators, because it reveals how much your team is generating in terms of real sales. The average ticket represents the average value of each completed sale.
This makes it easier to know which salespeople are selling better — instead of which are selling more — and what can be done to improve the numbers of the other members of your sales force.
3. Success Percentage
The success percentage reveals how many sales were really completed, in comparison to the number of opportunities which were initiated during the same period. It’s used to evaluate sales efficiency.
If the percentages are less than expected, it could be a sign that you need to invest in training for some of your team, focusing on negotiating techniques and how to deal with more resistant clients, for example.
4. Conversion Rate per Stage
As the name suggests, this indicator helps identify the conversion rate for each stage of the sales funnel. In addition to helping understand which clients will really be won over, they also help indicate the main weaknesses of your salespeople.
A low rate in the first stage could indicate a problem in terms of approach, while a low rate at the end could indicate difficulties in convincing the client, or negotiation errors, for example.
5. Sales Velocity
Sales velocity is also one of the most important sales indicators of what the final result will be, given that often negotiations that take more time have fewer chances of reaching completion.
Also, the quicker your sales cycle is, the less effort it will require, and therefore you’ll have a greater return on investment in terms of your sales – and you’ll also be able to handle more clients during a given period.
Creating and following sales indicators is a way of evaluating the performance of your sales force in a fair and uniform fashion. It will also let you know whether they’re delivering the expected results or whether a change needs to be made— like offering training, changing procedures or altering targets to make them more realistic.
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