Are you sure you follow the right sales indicators? In this article, we will talk about the indicators that sales managers can use to evaluate sales people.
RELATED: A Winning Sales Culture Begins with the Right Sales Indicators
In this article:
- Do salespeople worry about sales performance indicators?
- Internal sales methods Representatives consider the least useful
- Duration of the sales cycle
- Appointment speed setting
- Percentage of hot transfers
Less useful sales metrics for evaluating sales representatives
Do salespeople worry about sales performance indicators?
What measures do you use to effectively monitor your sales team? Does the data you collect contribute to the sales performance of your team?
To get the information you need, you can set up a KPI sales indicators according to the needs of your organization. But it's not always as easy as it seems. The trick is to monitor the significant without losing sight of what is really important.
That's why InsideSales.com has invested in research to identify the most valuable internal sales indicators. And we created a free cheat sheet titled "12 High Velocity Metrics That Really Increase Results".
Each of the 12 provides valuable information to sales managers, provided you have an effective way to track them. However, your representatives may have difficulty understanding the value of some of them.
We asked our representatives what measures, in their opinion, are the most overestimated. Their answers offer a powerful insight into their thinking. This information reveals common blocking points in which you may want to spend more time educating your team.
Overcoming internal objections and keeping your staff motivated is at least half the battle.
Internal sales methods Representatives consider the least useful
1. Duration of the sales cycle
If you follow total length of your sales cycle, some members of your team might think:
- "The sales cycle can be strongly influenced by the customer and the size of the company and can vary significantly from one company to another."
- "Although it's interesting to know, it will not help me improve my performance."
- "It's out of my hands."
Your sales people may not think much or will not even care about the average sales cycle. What they do not know is that tracking this situation can help them reduce their sales conversion rate because they will know with which potential customer they should spend more time.
How to approach this: Ask your representatives how they compare to their peers. Then show them the data.
This will help your representatives to see that your best people are finding ways to shorten the sales cycle with exactly the same types of prospects and prospects.
This should prevent them from believing that it is out of their reach.
Teach them new techniques that they can use to create more urgency. Once their results begin to improve, they will naturally be more enthusiastic about this measure.
2. Speed of making appointments
If any of your internal sales indicators is how long your team appointment booksyou might hear these comments from time to time:
- "If you make an appointment too early, you may not qualify for the lead role."
- "I think everyone reserves them as soon as possible. You usually can not do much if the manager needs an appointment later. "
- "This is out of place. This is not up to the sales team. "
We must measure how quick sales representatives set appointments. Failure to do so may risk forgetting customer responses, losing opportunities to organize meetings and possibly reaching agreements.
Maybe they are still achieving their goals even without measuring that measurement. Again, seeing how much time they spend between appointments can push them to hold meetings more quickly.
How to approach this: Again, you can illustrate that some representatives systematically set appointments faster than others, if your representatives think they can not influence this. You may also want to remind them that momentum is essential in sales.
The sooner they fix appointments, the more they inject into your funnel. On the other hand, the more they leave things hanging, the more they lose sales.
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3. Percentage of hot transfers
At InsideSales.com, we know how important it is to measure the percentage of your appointments from hot transfers, or even call progress.
Definition of hot transfers: Also known as direct transfer or hot transfer, it is the moment when a potential customer agrees to be transferred to a sales representative during a call.
Some of your representatives may, however, have difficulty understanding the importance of this measurement of internal sales:
- "Most vice presidents and big business executives do not have a lot of time without planning."
- "It does not matter for a seller to follow. Good for management, though. "
How to solve this problem: Ask your representatives how many of their appointments have been defeated. Then ask how many of their hot transfers do not show up.
They will surely see that 10 minutes with a potential customer is more valuable than 45 minutes planned for a later date.
Identifying the most difficult sales statistics to generate the enthusiasm of your salespeople can help you improve your operations by tackling their problems head-on with compelling data.
Once you have defined the sales team statistics you need to refine, you can inspire salespeople to exceed their quota.
What sales measurement model do you use? Are they effective in increasing the revenue of your sales team? Share your point of view on the key selling indicators you can not do without in the comments section below.
Take a look at the 12 statistics that generate results by downloading the free cheat sheet below.
Free Memo: 12 metrics of high velocity
Discover the 12 sales parameters that each in-house sales team must measure to improve their bottom line. Get a cheat sheet now
Editor's Note: This position was published on June 4, 2013 and has been updated to improve its quality and relevance.