Measure What You Treasure: Sales KPIs
Sales leaders are held accountable for top-line performance, but many are not aware of the underlying factors hampering results. In a recent market research study conducted by PK, 57% of the participating inside sales leaders reported not having metrics in place to measure the effectiveness of their inside sales programs.
Ineffective measurement (or a lack thereof) means an inability to detect trends and improve processes. Sales leaders that are able to effectively measure Inside Sales performance are better equipped to understand where they need to focus their efforts for improvement.
When defining and building a measurement program, focus on KPI’s that:
- Enable you to make more informed decisions
- Help your salespeople be more effective
- Align with your compensation plans
Measure what you treasure: Among Sales leaders who are able to effectively measure inside sales performance, here are some of the most valuable key performance indicators they are managing to:
- Sales Performance: Quota vs Actual; Forecast vs Actual; New Customer Acquisition; % Revenue from New Customers vs Existing Customers; Transaction Value; Total Pipeline Value
- Sales Process: # of Leads; Lead to Opportunity Conversion; Sales Velocity (length of time to close the sale); Deal Abandonment; Win/Loss Ratio
- Activity Levels: # of Appointments; # of Proposals/Demos; Time to respond to a Lead
- Talent Development: Time to Ramp; Revenue Growth by Rep (month/month); Sales Person Ranking; Attrition
- Other Indicators: Client retention/growth, Sales by Product Mix, Channel vs Direct, Effect of discounts/special offers
Effectively tracking sales performance beyond revenue attainment allows you to remain nimble and adjust rapidly to market conditions. Whether you choose to revise your sales strategy, adjust your marketing plan, or modify your value proposition, having timely access to a consistent set of key performance metrics will allow you to make the right adjustments for improved results.
Are you able to measure the effectiveness of your inside sales team? Have you thought about the non-revenue metrics you need to focus on in order to optimize your team’s performance?Tags: Sales Optimization, Sales Performance