Too many sales organizations believe that if it can be measured, we might as well have it as a metric.
Or, just because it’s easy to measure, it’s a metric worth following…false!
I want to go through ten sales metrics for any individual producer or organization. But, I don’t think you actually need ten. You really only need to focus on three or four; those are your major metrics.
1. The number of conversations with prospects or customers.
This excludes customer service type calls.
This is the number of actual conversations, whether it be on teams, zoom, or in person with prospects or customers.
2. Number of calls made to prospects.
This includes voicemail or a message left with a gatekeeper.
This is the number of attempts made to reach prospects. It’s critical because it’s going to help you determine: what is my prospect? What does my process look like? Is it email-focused? Is it too inbound-focused?
I also want to be looking at: Am I making calls?
3. Number of prospecting emails.
Separate this from marketing. This is generated from salespeople because there’s a specific issue happening there.
4. The number of conversations it takes to close a sale once the lead is qualified.
Over time you want to be able to decrease the number of conversations it takes, because that means you’re getting more efficient. It also means you’re more dialed in on your ICP.
Read these 6 Steps to Customer-Centric Communication
5. The length of time in days or months it takes to turn a lead into a customer.
Does it take three months? Does it take one month?
This metric helps individual salespeople determine whether or not they have a chance of making their number.
It’s a new quarter and I don’t have enough in my pipeline. Well, if my sales process takes six months, I’m out of luck. That impacts which prospects I go after.
My whole objective is to decrease the length of time it takes. So it might mean that I need to simplify the offer or approach the customer differently.
6. Percent of leads that ultimately become a customer.
This is different from being qualified.
This number of leads that ultimately become a customer is going to help me determine whether or not my marketing efforts are good, or a bunch of garbage.
I may have a website, be doing webinars, or other things that are attracting people that just don’t become a customer.
7. Percent of offers made that never result in a sale.
You don’t want 100% of your offers made to turn into sales. That means I’m not bringing enough people to the dance, but I also don’t want to be down at 10%.
There is no magic number, but I always like to say that within 50 to 65% is where I want to be.
8. Percent of leads that fail to ever engage.
This is going to tell me how good my initial efforts are, my initial communication, my initial cadence.
It could be the case that I’m going after the wrong leads.
9. Percent of new customers who generate a second sale within 90 days of the first purchase.
This really is a measure of customer satisfaction, and whether or not I’m able to land and expand.
10. Percent of new customers who provide a valid referral within the first six months.
This says that I’ve got a raving customer. I’ve done a great job of selling and setting the right expectations and delivering on them.
Not comfortable asking for referrals? I’ll teach you how in my Referrals Masterclass available now on The Sales Hunter University!
How to Improve Your Closing Ratio
The key to improving your closing ratio is by refining your opening approach.
Find Episode 227 on your favorite podcast app!
How to Crack Major Accounts
w/ Carson Heady
Mark and Carson also discuss the innovative uses of AI and large language models for crafting outreach.
They’ll share strategies for introducing key stakeholders to help deals move along, and the importance of maintaining responsibility throughout complex transactions.
Ep. 228 out NOW! Find it here.
Copyright 2024, Mark Hunter “The Sales Hunter” Sales Motivation Blog. Mark Hunter is the author of A Mind for Sales and High-Profit Prospecting: Powerful Strategies to Find the Best Leads and Drive Breakthrough Sales Results.
