easuring KPIs is a crucial milestone of any business. It enables you to efficiently evaluate the performance of sales reps as well as tailor your product or service according to the customers’ needs. The mechanism seems to be a no-brainer, but many companies can’t take advantage of it. Knowing correct data leads you to the main goal – the revenue growth. So, our experts have picked some tips for you to clear up what KPIs will maximize your sales efficiency.
1. Managing customer database
You have to know the exact number of new prospects your sales reps are visiting during a certain period of time, say, per month. Keep track of all the specific data gathered about your potential customers. To know the people, you are going to have business with, is critical. You need to know their background, location, occupation and outcome. It will help you to personalize the marketing strategy and measure the lead generation ratio. Moreover, the sales force will be armed with solutions, customized to the individual needs of each prospective customer.
2. Amount of leads being converted
This KPI is also essential to make your business competitive. You need to monitor the transformation of quantity into quality and determine its rate. This information will help you define what is wrong with your lead conversion approach. Besides, the data captured will assist in optimizing your marketing and sales departments’ activities next month.
3. Time spent to close a deal
No matter how many deals have been closed this month, it may go all the way different next time. And it can lead you to wrong conclusions and false predictions. Always try to get and review the recent metrics from your CRM system’s database. You will know how much time and a number of calls takes a sales rep to close a deal. If it takes too long – try harder with the company’s onboarding program and improve sales force presentation techniques.
4. Sales reps to closed deals ratio
Such a KPI can be of great assistance when you decide to reduce business costs and stay profitable. There is no need in outnumbered sales force if they don’t demonstrate they are efficient enough. Don’t pay more. Downsize your sales team to let professionals deliver your brand value.
5. Ratio of channels/tools to be most effective
Whatever type of business you run, the marketing and sales strategy must presuppose using various channels – emailing, blogging, making calls, F2F meetings, etc. Evaluate the CRM data and make use of customers’ feedback to realize which channels prove their business effectiveness. Next time let your marketers reallocate company’s efforts and resources to increase sales closing rate.
As for the tools you should consider the CRM/CLM systems, implemented in your company. How do they meet today’s business requirements? Do they provide the full understanding of your customers’ needs? No success is possible without employing data-driven approach nowadays. Request a free demo to get a better understanding how CRM/CLM systems will work with your business.