Sunday, February 25, 2018

6 KPIs Every Sales Leader Should Be Measuring in 2018

6 KPIs Every Sales Leader Should Be Measuring in 2018

1) New Contacts Rate

This is the metric that managers most consistently monitor.
How are your salespeople contributing to the expansion of your business
in their given territory? Who’s reaching their quota? What percentage
of your team is hitting their number? Is quota too high? Too low?

Share this data with your team so they can see how they stack up
against other reps. There’s nothing like a little competition to get
your team motivated.

2) Client Acquisition Rates

Another commonly used measurement is rate of client acquisition. Of the new prospects your reps reach out to, how many convert to customers?
It’s natural for some salespeople to perform better than others -- but
if there are large discrepancies between conversion rates, dig deeper.
Are lower-performing reps approaching bad-fit prospects? Is there
something that overperformers do in sales meetings that others don’t?

Compare conversion rates to the number of prospects a rep reaches out
to. If you find that conversions decrease after a certain number of
touches, use that number as a benchmark to prevent your reps from
getting burned out or stretched too thin.

Finally, use conversion rates to compare different outreach methods,
such as emailing or cold calling versus pursuing face-to-face

3) Sales Volume Per Location

By comparing sales volumes across locations including physical stores
and online transactions, you can see where demand for your product is
highest and lowest, then tackle the why.

If sales volume is large in region A, perhaps there is a higher
demand there, in which case you can focus on customizing certain
products and services for that region. Or, if you are comparing numbers
across physical stores, you can take advantage of A/B testing. For
example, if two locations see relatively similar sales volume in
January, try implementing a promotional sale in one location and not the
other in February to see if it drives sales.

In addition to promotional sales you can try other tactics such as shelf displays, discounts, coupons, demos, or samples.

4) Pricing Against Competitors

While managers and business owners shouldn’t track competitors’ every
move, being aware of their pricing can help create a competitive
strategy. If your prices don’t differ much, you can consider a
price-matching strategy to guarantee your customers the lowest prices,
and you the most sales. Additionally, by keeping track of the average
retail price of your
products, you can measure the impact of cutting your prices or
implementing a promotion.

5) Existing Client Engagement

Maintaining good rapport with customers after the sale is important
to ensure long-term business. By regularly touching base with their
customers to understand how things are going and how they can help,
salespeople can build trust and keep customers happy. When reps are
consistently available to help, customers know they’ll always have
somebody there to support their business needs.

Beyond benefiting your company’s business outlook, keeping in touch
with clients supports your business’ strategic goals as well - its a sales metric that matters.
Ask your salespeople to keep a tally of interactions they have with
each of their customers, then compare the number of touches to the
average length of a client relationship.

6) Employee Satisfaction

Working in sales requires persistence, and sometimes representatives
can run out of steam. So one of your biggest challenges is making sure
your sales reps are motivated and enjoy their work. With a remote
workforce, how do you keep your sales force in sync? Do they feel like
they’re part of a team? Do they agree with the sales methods that you’ve

Employee feedback is crucial. KPIs are used not only to measure your team members, but also your performance as a manager. Employee satisfaction
can be difficult to quantify. Try asking each employee to rank their
job satisfaction on a numeric scale, along with a few qualifying
questions to understand what’s making them happy or unhappy, then
compare the results against your goal.

Once you have data on your KPIs,
analyze the information to understand why you got those results. Then,
determine how you can improve performance and follow through with action. And remember -- as important as establishing KPIs are, they must be always tied to an overarching goal.

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