Measure These Things Now
With the ubiquity of CRM sales has become like baseball — you can measure your stats six ways to Sunday. The trouble is, some people do! Don’t get stuck in analysis paralysis. There are but a few things you need to measure to predict your sales future.
Sales is an efficiency and effectiveness game. How much of something do you need to do, and how well do you need to do it to reach your sales quota? Let’s start with the efficiency, or ‘how much’ part.
Measure the number of sales interactions [conversations, the primary focus of which is to move a deal forward. Customer service calls don’t count] executed by your team daily and weekly. Sales interactions are the number one thing for most businesses that cause sales to happen. They are a leading indicator to future revenue generation results.
A quick word about salespeople who don’t want their activities measured. Any resistance you get to weekly sales activity reporting that smells like “that’s a waste of my time” is grounds for a serious conversation. Would your production department balk at measuring their inputs? Of course not, that would be ludicrous. Sales people are in production, they produce sales. You need to know the typical inputs required in your market and industry and geographic location to generate a sale. This is the only way you can embark down the sales process/results improvement road.
Okay, so back to measuring… In only a few weeks you’ll quickly see trends around who is having how many meetings, and can then connect that to the revenue those efforts produce. Use the data to discover what the magic activity levels need to be on a per rep basis and set these as your benchmark. Manage to these benchmarks.
Shifting now to the sales funnel… When it comes to sales funnel measures, most managers and reps work from the end of the sales funnel backwards. They measure the number of closes this week, how many proposals went out the door, etc. The most successful teams I’ve worked with do the opposite. They measure from the very front end of the sales funnel forward. Interesting.
Early stage sales funnel work [finding leads, contacting them, trying like crazy to secure meetings] is the grunt work of selling that most sales people do willingly only when pressed. Sure, they will lilly dip along the way but they’ll only apply nose to sales grindstone when their sales funnel is dry. These folks experience sales peaks [Hurray!!] and dreaded sales valleys [Booo!!] for this reason. Those in the know track their early stage selling activity daily-weekly. They never, ever lose sight of the fact that sales seeds they plant today can take awhile to take root so they sow every day.
Start with measuring Net New Sales Lead Acquisition. How many raw names have been added to the master list this week of sales leads to reach out to? The optimal number is of course based on your product, industry and sales cycle. Generally, the shorter the sales cycle and simpler the sale the more raw leads you need weekly.
Next, measure the number of Sales Leads Researched per week. This is the number of raw sales leads for whom their website, Linkedin and other social media have been scraped to determine if they might be a fit for your products and services. Note – I consider new leads acquired and then researched as being above the sales funnel. They are so raw you simply can’t assign any probability around the amount of revenue they might generate.
Following the research stage is Sales Leads Activated per week. Now we are into the sales funnel. Activation means you have reached out directly [voice or email] in an attempt to book a meeting. The purpose of the meeting is to conduct a diagnosis to determine if your products and services can be of help to them. Bear in mind that it might take several attempts to reach a potential customer. So, each week you’ll need to activate new opportunities as well as reach out to those from last week [and the weeks before] that have not responded.
To stay on top of this, track the Number Of Connection Attempts Per Activated Sales Lead. Now you are going to start measuring sales effectiveness. These days everyone gets either their email, voice mail, or both, regularly. If they are not responding there’s usually a good reason for it. The rule of thumb is if after 3 connection attempts there has been no response you should either try a new tactic or jettison that lead and move on.
Successful lead activations lead to Diagnosis Meetings. These are golden. Measure them actively. Then measure how many convert into viable sales Prospects. The higher the conversion rate, the better. A low conversion rate might mean you are selecting the wrong leads to call on in the first place.
Look at all of the above measures and assess the following:
a) are the results good or bad?
b) if good, why are they good and what can you replicate to get better?
c) if bad, why are they bad and what’s the fix?
d) decide how you’ll implement fixes and optimizations and stick to it going forward.
Getting to great at early funnel stage work is the road to having more revenue pop out the other end reliably and predictably. Measure, optimize, do, repeat. That’s the magic.
Like what you’ve read here? Totally disagree? I’d love to hear from you either way at [email protected]
