Paying attention to dollars and cents is important, but concentrating on revenue alone won’t help you improve your sales team’s performance. To improve performance, in addition to monitoring the bottom line, you have to measure and analyze what your sales reps aren’t doing.
Below are three questions and corresponding suggestions that will help you determine what you and your sales team should be doing in order to measure sales performance and make your measurements count.
1. Is each and every sales rep on your team tracking the sources from which they get their sales leads?
Lists of qualified leads are great, but if you’re nurturing a team of sales reps who think for themselves, have their own relationships and contacts, and are selling to parties beyond those on the leads lists you provide, you need to be sure that you know where their leads are coming from so that you can repeat success stories and develop in-house market intelligence. In most cases, this can be done using a customer relationship management (CRM) system. However, you should keep in mind that your CRM system will only yield the reports you need to accurately analyze source patterns if all team members are entering lead source information in the same way. Getting all team members to enter lead source information in the same way may require additional training and the development of specific codes for each type of source. Sources may result from referrals, e-marketing, SEO, road shows, signage, TV and radio ads or announcements, or the party that a sales rep attended last Friday night. You may need several codes and sub-codes for each source or to develop a unique system for tracking lead sources.
2. Are all sales reps accurately identifying the reasons why they didn’t convert leads into sales?
By all means, analyze why it is you’ve won the accounts you’ve won, but don’t dismiss the value of analyzing why it is you didn’t win other accounts. Looking into what made some leads convert into sales and what made other leads that had an obvious level of interest in your offerings ultimately decide not to make a purchase can be incredibly valuable to almost any organization. Communicate the reasons why leads aren’t converting to all of your sales reps and you will empower them to better understand the challenges before them and anticipate hurdles. Understanding why leads don’t convert can also help you amend and improve your sales training practices.
3. Are you communicating the potential value of each transaction to your sales reps in a way that improves performance?
In addition to communicating to sales reps why certain sales were won and others were lost, open regular discussionson the ways that you might have upsold to customersthat did make purchases. Also discuss how your products and services might have solved non-purchasing leads’ problems in atypical ways. Try to uncover upselling techniques that work as well as gain real-world insights from sales reps that are on the front lines. Finding out what that non-purchasing leads looked for in your products and services and did not find, in particular, can generate unique sales solutions and even give your product development team food for thought.
Measuring sales performance isn’t an exact science, but there are tried and true methods that you can use to maximize your company’s measurement capabilities. If you don’t have the in-house resources to develop and implement a comprehensive measurement initiative, Vendere Partners’ sales management consulting services may be a cost-effective alternative. The Vendere team has proven methodologies in place that will enable you to identify gaps in performance, the holes in your sales funnel, growth potential, sales pipeline capacity, and much more.