Sales is a numbers game. I am sure that you know all about sales quotas and the challenges related to achieving sales targets. But when measuring sales performance in complex sales flows that involve multiple channels and indirect sales, you need more than the annual sales quota to evaluate your sales reps’ performance. The following metrics can provide more detailed insights into the individual sales rep’s performance and give you an indication of why some are performing better than others.
1. Number of meetings booked
Your sales reps’ ability to book new meetings is essential. Not only because meetings can be converted into proposals or even closed deals, but also because it informs you about the individual sales rep’s ability to create leads and can suggest whether you have an appealing sales pitch or not.
In other words, a sales rep who can book meetings with new potential resellers of your product is a sales rep who can convey how your product creates value throughout the sales channel.
2. Number of deals closed
The number of deals closed is a clear indicator of whether the individual sales rep is living up your expectations. Compare the number to the average of the rest of the sales team and to the industry average to learn who your top performers are and who needs some assistance to boost their performance.
3. Number of identified and realized growth opportunities
A closed deal is not the end of a sale. Identifying opportunities for upselling or expanding the partnership with current resellers can be valuable activities that should be accounted for when evaluating the performance of you sales reps. Be aware that it might be beneficial to assess the growth opportunities of your various sales channels to know where to focus your sales reps’ time and efforts. A McKinsey study suggests that is what companies who are adept at multichannel selling do.
4. Average sales cycle length
The average sales cycle length informs you about your sales reps’ ability to quickly follow up on potential deals and effectively get to the closing phase. It is also one of the metrics mentioned in a Harvard Business Review study as one of the most important in benchmarking sales performance.
5. Time spent selling
Your sales reps should spend their time where it matters the most – selling. It can be difficult to measure exactly how much time is spent with activities that add value to sales and activities that do not. One way to get an estimate is to simply ask your sales reps via a questionnaire. This can tell whether they are spending enough time with customers or are doing too many administrative tasks in the office that do not benefit customers. If the latter is the case, you might consider how to restructure or provide better support to your sales reps.
A McKinsey study found that in a company where sales reps spent 28% of their time with tasks like handling complaints, they managed to free up 13% of sales reps’ time by moving these time-consuming tasks to another sales supporting department in the organization.
6. Training sessions completed
Having a knowledgeable sales force is crucial, even more if it must excite resellers and transfer knowledge to them about your product or service. Therefore, metrics about the internal training sessions your sales reps have completed might indicate why they are closing few or many deals.
The metrics companies utilize to evaluate their sales reps’ performance might vary across size, industry and complexity of sales activities. The metrics mentioned above become even more useful when you combine them with each other to get valuable insights into what it is that your highest performing sales reps do. Then you can start creating benchmarks and teaching best practices to elevate the performance of your entire sales team.
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