Looking to give your business a competitive edge? Here are 7 essential sales performance metrics your business should be tracking.
If you don’t measure, you won’t know whether you’re winning big or failing hard. While this goes for everything in your business, we are talking about sales performance specifically today.
Monitoring sales performance metrics is a must if you want to increase your sales and grow your business to be more profitable.
Continue reading this article as we talk about the most important metrics to monitor for sales.
Sales metrics are data points that represent performance. That performance might be that of a company, an individual or a team.
These metrics are used to make sure everyone is on track and using financial tools like QuickBooks Premier or QuickBooks Enterprise Cloud Hosting from desktop as a service providers.
Now that you understand what sales metrics are, let’s get into the specifics on which ones to track.
Knowing what the average size of a sale is for your business will help you see if contracts are increasing in size, getting smaller or staying the same.
Depending on your goal, you may want your average size of sale to go up or down. If you want to do business with fewer people for more money then you went it to go up. On the other hand, if you want to do smaller sales with more people, you want the average size of sales to go down.
Your business depends on your sales teams hitting their goals. If you notice a large number of your sales team aren’t hitting their goals, you need to address it right away.
If most of the people in your organization aren’t hitting quota, you might need to consider that your quota is too high. Having high quotas that are nearly unreachable is bad for morale.
Knowing your conversion rate lets you know how many people your salespeople need to talk to before they get a sale.
You can look at past and current conversion rates to see if your sales team is becoming more or less effective. If you notice conversion rates are going down, it might be time to have some additional sales training.
Having a funnel stocked with leads is essential to your business, and if you have a big leak in your funnel, you need to know about it. Keeping a watch on your potential buyers to see where they are falling out of the loop will help you see how you can improve and keep them in the sales process.
Revenue is the most important KPI in your business and it might be one of the easiest to track depending on your business model. You can look at your business model and figure out which part of your revenue makes the most sense to focus on increasing.
For example, if you’re a subscription business , you want to increase revenue from new subscriptions without decreasing revenue from current subscriptions.
Now that you know more about sales performance metrics and which ones are the most important, you can invest in KPI visualization software. This software can help companies manage metrics with dashboards, reports, and alerts. It also makes it easy to set goals for the targeted KPIs, track them, and visualize their current performance. Choosing adequate performance indicators to measure, and monitoring them with modern software solutions, can help you improve your sales strategically and boost your business.
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