Sales metrics may be a new trend for departments like marketing and service, but measuring analytics is nothing new to data-driven sales teams. They’re no stranger to the importance of capturing and analyzing the effectiveness of their daily actions and activities.
Everything from time spent on the phone a day to the size of that most-wanted whale opportunity, sales metrics are to sales teams as vitals are to a surgeon.
They provide a vivid picture of a sales pipeline’s health, and can indicate with a tremendous degree of accuracy whether a positive outcome will be achieved or goals will be missed. But while other departments play catch-up, sales metrics have continued to evolve.
But building a team driven by sales metrics requires buy-in from every role throughout the process on which these sales metrics are being tracked and why. It’s only when everyone is on the same page that a sales team can begin to actively track, assess, and predict success. That’s why we created our newest eBook, “The Essential Guide to Sales Analytics.”
Just like in surgery, it all starts with basic anatomy. In this case, those basics are the beginner analytics: the easiest sales metrics to track, and the heartbeat you absolutely must be monitoring at all times. Get your pencils ready, beginners, here are the sales metrics you should be tracking:
Prospecting Sales Metrics
Dials per Day. This is the total number of calls, successful or not, that an SDR makes in a given day.
The Value? This metric shows you how productive reps are at dialing prospects. Since there is a strong correlation between dials and meaningful sales conversations, many companies will have dialing quotas for their development reps.
Emails per Day. This is the total number of emails that an individual rep sends to prospects each day.
The Value? Much like dials per day, this metric can show you how productive reps are at emailing prospects. Keeping a regular cadence of sales emails is important to generating responses and scheduling follow-ups.
Conversations per Day. This is the number of times a rep has an actual conversation with a lead in a given day.
The Value? This is an important metric to focus on, as there is a very strong correlation between conversations each day and quota attainment. While the number of conversations SDRs have is not entirely within their control, increasing dials and emails per day, as well as dialing technology like Salesloft, can maximize the chances of having meaningful conversations.
Sales Metrics for Closing Deals
Opportunity Revenue. This is the amount of revenue in a rep’s opportunity pipeline if all open opportunities closed.
The Value? This metric is the best way to quantify the potential of a rep’s pipeline. Comparing opportunity revenue to the actual amount of revenue that a rep closes gives you an accurate way to calculate success and ROI of that rep’s efforts.
Number of Open Opportunities. This is the amount of leads that are converted to open opportunities.
The Value? Knowing how many leads are converting into opportunities is crucial to predicting revenue and growth. It’s also a good indication of where your team stands in a given period. Without enough open opportunities, it’s impossible to hit quota.
Performance Analysis Sales Metrics
Average Deal Size. This is the average amount of your closed deals.
The Value? This number is crucial to making revenue projections. While you can estimate the number of deals that will close each month, you need the average deal size to predict how much revenue will close.
Pipeline Value. This is the total amount of revenue gained if every opportunity in the pipeline were to close.
The Value? This tells you the total amount of revenue that could potentially be closed by your sales team. Tracking this metric over time allows you to make accurate revenue projections and approximate growth over time.
Closed Lost Percentage. This is the percentage of opportunities that are lost.
The Value? Understanding the percentage of deals that your sales team losing allows managers to delve into why those deals are getting lost and identify coaching opportunities and areas of improvement.
Win Rate. This is the percentage of opportunities that are won by your sales team.
The Value? The value of this metric is simple: it tells you how effective a rep is at selling your product. If a rep has a low win rate, it could indicate that they need additional coaching. A rep with a high win rate may have understanding or strategies that can benefit the entire team.
In the beginning stages of analytics, it may seem as if sales metrics are placing value on quantity above quality, but that’s not necessarily the case. If your sales reps are performing repeatable and predictable behaviors — ones that are continually optimized based on performance sales metrics — quantity and quality can finally go hand in hand.