Could you ever possibly manage that which you cannot measure? It is of little wonder that sales managers rely heavily on Secondary Sales Tracking Software for precise sales metrics that guide their strategy and forecasts.
Business luminary Daymond John, a SharkTank entrepreneur, describes this dependency on Sales metrics with a vivid analogy:
“...imagine your ship is in battle and you have no command center giving you visibility of whether or not your ship has been hit until 30 days later, nor visibility on whether enemies are behind you or in front of you. What do you think will happen to your ship? You Sink.”
And sink you will, unless you have a functional Secondary Sales Management Software in place. But which KPIs and metrics form the holy grail that sales strategists vouch to guard with their life?
Not just KPIs
Are KPIs the only quantifiable metrics that calibrate and determine your strategy? One of the biggest myths to bust while chalking out your sales checkpoints is that KPIs are the only numbers that you need to be concerned about.
Well-known and much talked about metrics like gross revenue, monthly sales growth, Quote to close ratio, average purchase value, etc. are not the only values that determine your sales strategy success. In-process progress rates, sales rep follow up frequency, cold-calling rate, frequency of sales efforts, salesperson efficiency, product insights, preferences, and team productivity metrics are what your Secondary Sales Tracking Software needs to keep track of to help you strategize.
Did you know that many as 48% sales reps do not follow up after the first try? Lukewarm sales efforts can spell disaster for your sales strategy. How did we even arrive at this shocking percentage though? By keeping track of sales metrics, of course! Effective Secondary Sales Management Software has often brought shocking statistics to light that has helped countless sales managers to streamline and consolidate their strategy.
The Master List
It takes a phenomenal effort to keep track of the primary data points amidst hundreds and thousands of processes. For that we have a simple GR-R-MP-G-A-PS formula :
- Gross Revenue
- Revenue from each product
- Market Penetration
- Revenue generated from new endeavours
- Attrition Rate
- Total Promoter Score
Let’s look at some of the data points closely for the tips and trick to devising a sure-fire strategy:
Customer Lifetime Value (CLV)
The new-age consumer does not just buy products or services. They are enamored by unique digital experiences, they connect to brand ethics and focus on value-driven experiences. As such, the relationship of the consumer with a brand goes well beyond the first act of purchase.
Customer Lifetime Value is the total value brought about to your brand within a stipulated customer lifespan. For a constant uniform customer profit flow, there is a simple formula to calculate the CLV:
(Annual revenue per customer * Customer relationship in years) – Customer acquisition cost)
However, many times you will notice that your annual profit contribution per customer is much more variable. For such cases, a much more detailed version of this formula is used to arrive at the exact data.
Activity Sales Metrics: Saviour for Sales Managers
Sales managers generally swear by it, because managing a sales team with activity tracking would be impossible otherwise.
Activity sales metrics provide a sharp insight into your entire sales cycle. Not to mention, these are the efforts that are directly reflected on your revenue and sales rate:
- Number of calls made to prospective clients.
- Number of sales emails sent.
- Number of conversations
- Number of social media interactions
- Number of referrals
- Number of Sales presentations given
Invariably, without these metrics managers will not even be aware of lukewarm sales efforts.
Almost half of the sales reps give up on a customer right after the first contact. The sales process needs tenacity. With the right metrics, managers can manage and consolidate these issues seamlessly.
Sales Productivity Metrics: The manager’s eyes and ears
You can not escape scrutiny when sales productivity metrics are in play. Sales productivity metrics come in handy while making forecasts and assessing salesforce productivity. One of the crucial among this lot is the Sales ramp-up time. This represents the approximate time required for each member of your salesforce to become fully productive. Sales ramp-up time is an extremely important factor to keep in mind while developing sales forecasts and setting expectations from each sales rep.
Although these metrics may seem fairly simple, new sales reps often take up old client accounts. With the right reports and estimation of the sales ramp-up time, you can evaluate their performance and lead progress.
Some other key sales productivity metrics include:
- Percentage of time spent on real-time sales activities
- Percentage of time spent on manual data entry
- Percentage of time spent on creating content
- Percentage of high-potential lead follow-ups
- Average number of sales tools used
Over 51% of buyers are more likely to choose the vendor who responds first.
Average Lead Response Time
Your lead response time is the time that you take on an average to reach out to a lead after they have been identified as a potential customer. Immediacy of response is bound to earn a lot of points in your favour. Every rep in your sales team is assigned certain leads. With the right metrics managers can identify and weed out slackers in the process, thereby increasing team productivity.
Other than these crucial checkpoints, metrics such as Sales Cost Ratio
need to be tracked periodically by Secondary Sales Tracking Software.
There are also certain lead-related data points that you just can not miss out while strategizing:
- Frequency with which new prospects are added to the pipeline
- The volume of new prospects added
- Promptness of lead response
- Dropped leads
- Percentage of qualified leads
- Customer Acquisition Cost (CAC)
- Leads followed up with within the time range
So why is a Secondary Sales Management Software
in India crucial for your business functions? Tracking all of these data points manually is not even a viable option. With trailblazing solutions like MaxMobility’s GoSales app, it makes sense to let automation take over and optimize the sales arena. From process optimization to productivity tracking, crucial sales metrics are keeping your strategy ship afloat.
58% marketeers have already consolidated their strategy and are using automation for upselling. Are you among them yet?