6 KPIs Every Sales Leader Should Be Measuring for below mentioned tasks.
Actual sales value versus initial bid
Age of sales forecast
Average administrative time per sales person
Average deal size
Average number of activities (calls, meetings, etc.) to close a deal
Average price discount per product
Average price discount per sales person
Average revenue per product
Customer acquisitions costs as a percentage of sales value
Customer churn ratio
Customer purchase frequency
Frequency of sales transactions
Gross margin per product
1) New Contacts Rate
This is the metric that managers most consistently monitor. How are your salespeople contributing to the expansion of your business in their given territory? Who’s reaching their quota? What percentage of your team is hitting their number? Is quota too high? Too low?
Share this data with your team so they can see how they stack up against other reps. There’s nothing like a little competition to get your team motivated.
2) Client Acquisition Rates
Another commonly used measurement is rate of client acquisition. Of the new prospects your reps reach out to, how many convert to customers? It’s natural for some salespeople to perform better than others -- but if there are large discrepancies between conversion rates, dig deeper. Are lower-performing reps approaching bad-fit prospects? Is there something that overperformers do in sales meetings that others don’t?
Compare conversion rates to the number of prospects a rep reaches out to. If you find that conversions decrease after a certain number of touches, use that number as a benchmark to prevent your reps from getting burned out or stretched too thin.
Finally, use conversion rates to compare different outreach methods, such as emailing or cold calling versus pursuing face-to-face interactions.
3) Sales Volume Per Location
By comparing sales volumes across locations including physical stores and online transactions, you can see where demand for your product is highest and lowest, then tackle the why.
If sales volume is large in region A, perhaps there is a higher demand there, in which case you can focus on customizing certain products and services for that region. Or, if you are comparing numbers across physical stores, you can take advantage of A/B testing. For example, if two locations see relatively similar sales volume in January, try implementing a promotional sale in one location and not the other in February to see if it drives sales.
In addition to promotional sales you can try other tactics such as shelf displays, discounts, coupons, demos, or samples.
4) Pricing Against Competitors
While managers and business owners shouldn’t track competitors’ every move, being aware of their pricing can help create a competitive strategy. If your prices don’t differ much, you can consider a price-matching strategy to guarantee your customers the lowest prices, and you the most sales. Additionally, by keeping track of the average retail price www.repsly.com/kpi-template-toolkit of your products, you can measure the impact of cutting your prices or implementing a promotion.
5) Existing Client Engagement
Maintaining good rapport with customers after the sale is important to ensure long-term business. By regularly touching base with their customers to understand how things are going and how they can help, salespeople can build trust and keep customers happy. When reps are consistently available to help, customers know they’ll always have somebody there to support their business needs.
Beyond benefiting your company’s business outlook, keeping in touch with clients supports your business’ strategic goals as well. Ask your salespeople to keep a tally of interactions they have with each of their customers, then compare the number of touches to the average length of a client relationship.
6) Employee Satisfaction
Working in sales requires persistence, and sometimes representatives can run out of steam. So one of your biggest challenges is making sure your sales reps are motivated and enjoy their work. With a remote workforce, how do you keep your sales force in sync? Do they feel like they’re part of a team? Do they agree with the sales methods that you’ve implemented?
Employee feedback is crucial. KPIs are used not only to measure your team members, but also your performance as a manager. Employee satisfaction can be difficult to quantify. Try asking each employee to rank their job satisfaction on a numeric scale, along with a few qualifying questions to understand what’s making them happy or unhappy, then compare the results against your goal.