Much like driving a Ferrari in the fast lane at 200 km/h and monitoring your control at every second, so you would like to have a good grip on each aspect of your Salesforce and where to use which Sales Rep at the right place at the right time. Salesforces should be one of the most data-driven facets of any business as growth in any company won’t be possible without an active unit seeking new business opportunities daily.
The first thing you’ll need to analyse your sales data is a set of crucial full-proof performance indicators, or KPIs for short, that will indicate a drop or rise in performance of your Salesforce and to ensure a proactive action to follow to remedy any problem in your sales process or funnel. However, before we discuss the necessary KPIs you’ll need, we need to establish what Sales Analytics is all about.
Sales Analytics is the practice of generating valuable insights from daily sales data to identify trends over time as to produce the right measures that lead to better deciding what monthly targets should be and future sales performance.
Your analysis should lead to developing a better strategy that will improve sales performance in the short- and long-term.
However, still, why do this? If your business were a rock band, your Salesforce would be the lead singer to attract all your new screaming fans.
All eyes are regularly on sales and revenue performance, and an evil act can lead to a drop in company morale and reputation. Better analytics will lead to accountability on all terms to Sales Reps without having to micro-manage their every action.
So, let’s get into it…
1. Sales Growth
A key measure to estimate the ability of your sales team to increase revenue over a fixed period. Without revenue growth, your business might be overtaken by a competitor, or it will face the ill fate of stagnating over time. It can also be laced with a previous period’s sales growth to compare your current year again the last year.
2. Sales Target
It would help if you had something to compare current performance to the target you have set for the period applicable. Whether it’s in terms of units sold or given as a percentage, you need to know where you stand when comes to running too slow as a salesforce and whether you’ll reach the winner’s circle on time.
3. Sales Opportunity
It would be best if you prioritised your opportunities as Salesforce. As the 80/20 principle states, identifying the top 20% of opportunities that will lead to 80% of your sales revenue is essential in developing the best time-value for each Sales Rep. Know the probability of closing the deal will also help to prioritise your opportunities from the highest to the lowest.
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The sale-to-date measure is a great way to evaluate and keep track of the figures about the current year, in comparison to the previous year. Just another way to pace your workforce to keep up with past performance or improve on it.
5. Product Performance
This ties into a customer analysis metric, but to establish which products are the best sellers will give your Sales Reps the advantage of knowing which product to punt more in presenting your offering to clients.
6. Sales Conversion Rate
Determine how many leads provided to Sales Reps have been converted to actual paying customers. From prospect to client, this percentage rate will also give more insight into the marketing function of your company to determine whether their strategy is generating the most valuable leads possible for your business.
7. Sell-through rate
A metric that will measure the amount of inventory you’ve sold for a period versus the inventory shipped from all your suppliers. This will tie into the efficiency of your supply-chain to inform you which part of your inventory is slow-moving or fast-moving.
8. Cannibalisation Rate
This rate gives insight into the impact new products have on sales revenue versus existing products. Also, a desirable metric for your marketing team, this metric will show you if/when the demand for existing products decreases as new products are presented to clients and prospects.
Want to know effective your team is at closing a deal? This measure will show you the number of quotes done for every sale closed. When it comes to having the perfect Salesforce, you’d like to get this figure closer to 1:1. It’s the last essential part of any pipeline or sales funnel and closing the deal while it’s hot is something to take a closer look at more often.
10. Sales per Rep
Probably one of the most apparent metrics you’ll need to manage your Salesforce. Any team should work as a unit with every member performing their best. To know which members are hindering your sales revenue to reach its target and potential is integral have a well-oiled sales machine.
11. Average Purchase Value
Measure the average sales revenue through all sales transactions you process. Not only will this help for making projections and doing projections, but this will also help your team develop a way of incentivising customers to learn more into buying higher end products.
12. Sales per Region
A key metric for your marketing team. Knowing where most of your revenue is generated geologically will help in targeting the right areas to produce the best leads. Knowing which Sales Rep does best in which region will also provide you with reason to use them more in that region or if a product does better in a certain province or country, you’d be better of focusing your efforts on that part to maximise sales revenue for the next quarter.Read More