Sales is becoming an increasingly data driven field, with every interaction tracked through CRM systems such as Salesforce and Hubspot. There is so much data available to sales managers, it can be overwhelming. Making sense of such a large quantity of data is difficult if you don’t know what to look for. Creating a custom dashboard of specific sales metrics and benchmarks for each metric is crucial in tracking progress and assessing success. A sales metric is defined by Hubspot as a “data point that represents individual, team, or company-wide performance.” While the most important sales metrics vary across industries and individual companies, here are some sales metrics that every sales manager should have on her dashboard.
1. Sales cycle metrics
Knowing how long each stage of the sales process takes is important in the current fast-paced and competitive marketplace. Lead response time is especially important – one recent study by HBS found that companies that respond to leads within an hour are 7 times more likely to qualify leads than those who take longer.
2. Percentage of sales team hitting the quota
This metric tells you whether your quota is too high or too low, allowing you to either set a more realistic goal or increase expectations to motivate productivity. If a low percentage of salespeople are hitting the quota, your sales compensation plan might not have the right incentives in place.
3. Conversion rate/win rate
What percentage of your prospects actually convert to customers? Knowing this number can help you set benchmarks for other metrics, such as how many leads you need to hit your revenue targets. Tracking win rates over time will indicate whether or not your sales reps are becoming more effective.
Revenue is one of the most important sales metrics but should be broken down in order to be fully understood. Separate revenue into percentage of new business, percentage of upsell/cross-sell/expansion, and percentage of renewal. Sales managers can then see where their revenue is coming from and shift their focus depending on the company’s objectives.
5. Sales funnel leakage
Breaking down the sales funnel to look at the conversion rate between each successive step can show you at what point you are losing prospects at the highest rate. This information allows you to look more closely at the problematic phase and identify the problem there.
These are just a few of the sales metrics you should have on your dashboard. VizQuest offers help to companies in benchmarking sales performance metrics for capturing new business. If this is something your business could benefit from and you want more information, contact VizQuest here.