Sales Metrics Every Sales Leader Should Know
Customer relationship management (CRM) solutions like Salesforce and sales engagement platforms such as Groove process massive volumes of data that can help sales teams optimize their performance and help businesses maximize their revenue.
When it comes to the wealth of analytics tools available, the question faced by sales leaders is: Which sales metrics offer the most value? First, it’s paramount to acknowledge that certain metrics critical to one type of business may not be priorities for another, and that approaches to analytics vary.
Following are some vital sales metrics that apply to multiple business models and can be tracked through Groove and other sales engagement platforms. To pinpoint additional metrics that may pertain to your sales team, consider your “big picture” goals; for example, to increase customer acquisition, improve customer retention, decrease operating costs, grow revenue, or some combination thereof.
Sales Activity Metrics
Among sales key performance indicators (KPIs), sales volume often hogs the spotlight. After all, closing is what sales is all about. While this is obviously a crucial metric, there are other analytics that can help sales leaders compare performance among team members and assess performance relative to goals.
Call-related metrics measure more than just how many calls a salesperson makes. Within an integrated sales engagement platform, these metrics allow sales leaders to compare call-to-sales ratios, identify an ideal length of contact, determine optimal calling times, and much more.
Meetings and Events
The number of meetings a salesperson schedules and the number of events he or she attends to nurture prospects are also integral to evaluating sales performance and identifying opportunities for improvement. The advanced activity capture provided by sales engagement platforms makes it possible for sales leaders to track how many meetings it takes to progress to different sales stages, which is key to improving forecasting.
Emails, SMS, and Messaging
In addition to calling analytics, other communications metrics can track contact and response rates across multiple platforms, including email, the short message service (SMS) used for texting, LinkedIn InMails and Connection requests, and other messaging systems. Sales leaders may use this data to help gauge performance, and team members can monitor metrics like open and response rates to adjust their messaging accordingly.
LinkedIn may not be top-of-mind when it comes to key sales metrics, but the site is a popular and important hub for business-to-business connections. And even sales leaders and sales teams who grasp LinkedIn’s significance may not be effectively leveraging the data these connections can provide. Sales engagement platforms offer integrations with LinkedIn that enable reps to access contact data from their inbox to personalize messages and prepare for meetings. Even better, sales engagement platforms can push LinkedIn engagement data into a CRM like Salesforce for reporting and analytics.
Incoming Leads and Conversions
Lead and conversion tracking are no-brainers when it comes to sales metrics, but modern sales engagement platform solutions allow sales team members and sales leaders to employ lead and conversion data at a deeper level. Leads and conversions can be parsed at multiple levels to identify your hottest inbound sources, where in the pipeline prospects are dropping out, and where in the process conversions occur.
Sales Reach and Results Metrics
Sales activity is certainly important, but the intention of that activity is to generate sales reach and drive results. And it’s the results that tell you whether specific activities contribute to meeting your goals. The metrics that follow can paint a picture of how broad your sales funnel is and provide direction for improvement and expansion.
Measuring true return on investment is more than tracking close rates. In fact, your company’s overall reach provides a wealth of information even during slow sales periods. Sales leaders and sales teams should include company prospects and leads, email databases, social media followers, and similar metrics when tracking a firm’s overall reach.
Lead Qualification Rate
Lead qualification is often less a reflection of a sales team than a company’s marketing outreach. Lead qualification metrics allow sales leaders to evaluate their marketing efforts by measuring the qualified leads and conversions that follow (or don’t).
Call effectiveness considers information like contact attempts per lead and call duration. Call effectiveness metrics can indicate whether particular sales team members or call strategies are underperforming, help identify why, and inform improvement.
Conversions are the metaphorical bread and butter of sales. Conversion rates, conversion times, and customers acquired are all essential data points for conversion-related metrics. To make sales teams more effective, though, you must go deeper. For instance, how much time after a conversion is devoted to administrative tasks?
Customer acquisition cost (CAC) has become a popular sales metric in recent years thanks to technology that’s made it easier to calculate. In short, CAC is the ratio of dollars spent to gain a customer to the actual revenue from that customer. Understanding acquisition costs is useful to direct sales efforts, but it also gives business leaders a sense of how much capital their company will require to grow.
Recurring Revenue and Lifetime Value
These metrics may not benefit every business, but for those that rely on repeat customers, data regarding recurring revenue and lifetime value offers insights that can inform sales plans, revenue projections, marketing tactics, and other avenues.
Customer Retention and Churn
Customer retention and churn may not seem like sales metrics, but they can point to successes and failures in the sales process. For example, if many customers are taking their business elsewhere soon after onboarding, could it be a problem with information they’re receiving from a sales team?
Why Sales Metrics Matter
Sales metrics go well beyond those discussed here, and the data they yield can back knowledge-based decisions that allow your sales team to function at its potential and ultimately enhance your company’s profitability.
A sales engagement platform that works with a CRM like Salesforce can help sales leaders mine this data for its figurative gold. A sales engagement platform solution such as Groove, which works seamlessly with an organization’s existing Salesforce database, processes and gives context to these metrics.
Groove is a leader in sales engagement platforms, with recent accolades including a place on the Inc. 5000 list of fastest-growing private companies in the United States and winning the 2022 TrustRadius Awards for Best Feature Set and Best Relationship. Our commitment to customer service is demonstrated by being the top-ranked sales engagement platform on G2 for 13 consecutive quarters.
To learn how Groove can shift your sales department into high gear, visit our Solutions page or connect with us today.