Aug 23, 2017
Key Sales Performance Measurements
Posted in Blog
A crucial aspect of any organization is sales. This sector of a business is responsible for a large percentage of the revenue earned. Understanding the factors related to sales is the key to improve productivity, and hopefully improve profits. There are a few factors that possess great significance regarding the different features of sales, and would be vital in any sales automation software.
How much time is available to actually sell a company’s product? The more time there is to sell, the more time there is to close deals. Identifying this factor will help bring hidden deficiencies within the organization to light. A huge portion of wasted time is attributed to the search of information; product or client information. With the elimination of these issues the sales agents will have more opportunities to close deals.
This is an extremely important factor to consider in common sales practices. The longer the response time, the higher the chance potential leads will lose interest. Studies have proven that responses within the first hour have a substantial chance of closing deals compared to responding after 24 hours. Applying this process will enable marketing investments to be more worthwhile.
Comprehending the selling ability of the sales agents is a good way to gauge their potential. The capability to close deals is the most important characteristic any sales agent should have. Finding leads and increasing the prospect of a deal is not enough. Measuring this success rate can help detect sales agents who are struggling to close a deal. These agents can receive further coaching or training to help them and the company.
This measurement can help inform the administration which prospects should be further pursued and which should be dropped. As mentioned before, time is a vital resource for the sales force. Properly utilizing this resource is essential to maximize the output of the sales team. Small deals that will not produce much revenue for the company should not occupy too much of a company’s time and resources. This effort could be utilized elsewhere to find other leads or close more deals. Each case must be carefully analyzed before allocating any resources.
Sales Transaction Duration:
Similar to the previous measurement, judging whether or not the time needed to complete an agreement is worth pursuing is a huge concern. If the revenue generated from a transaction will not reach the company for a significant period of time, then the organization may not want to go through with the agreement as they will not be able to use the income to continue business or invest in other projects.
This is a good way to grasp the amount of effort each sales agent puts into their work. Are they responding to clients quickly? How many emails are they sending? Are they following up on clients? Answering these questions will help management judge the output of each individual sales agent. Proposing goals, providing proper motivation, or implementing incentives may keep the sales force on track. A sales team tracking software may be useful monitoring these factors.
A happy employee is more likely to be more productive which is ideal for corporations. The mood of employees tends to transfer along with their work, therefore since sales depend on face to face interactions with clients, meetings may be risky if the employees are not in the right frame of mind.
These sales measurements are very important for any organization with a large sales team. They can help improve sales practices and the sales team as a whole. Although there are more performance dimensions that can be measured, the listed quantities will be able to give an organization an indication about the quality of their own sales force and where they need to improve to better automate sales forces