As a sales team, the main objective is to achieve the revenue targets set by the powers above. A benchmark target can't just be pulled from thin air. The target has to be high enough to motivate and focus your team but low enough to be achievable. A target is a goal set for a salesperson measured in revenue for a specific time. Dependant on your market it should take multiple variables into consideration like seasonality, economic factors, business situation, historic revenue per rep and solicit feedback. Before you set any targets, as an executive you need to understand what exactly you want to track, what are your sales KPIs?
Three measures that we, at ServiceClarity, believe are the core fundamentals to your sales KPIs:
Monthly New Leads/Prospects
To gain a better understanding of how the sales team are performing you want to understand where in the conversion funnel people are dropping off. By seeing the number of new leads the sales team are bringing onboard each month and from this, how many progress onto customers, allows you to see the amount of leads needed to close a customer. If you set a reasonable benchmark comparative to your industry and based on the above variables you'll find this is a more compelling motivator for your sales team. By creating more leads you can also gain more valuable product market research. With almost six in ten buyers wanting to discuss pricing on the first call, this sort of information will prove beneficial to product and management team.
Cost Per Lead
Similar to what was said above about seeing the amount of new leads that convert to a customer, the cost per lead is an important element for this. Everything that your sales team does to attract new leads costs the business money. To calculate the Cost Per Lead this involves adding up the cost of the marketing efforts including salaries and then dividing this by the number of monthly new leads. What the goal is to have a benchmark of your current Cost Per Lead and then work on decreasing this. A decrease in your Cost Per Lead means you have better brand awareness whether this is through organic search on Google or improved customer experience, therefore encouraging word of mouth.
Average Conversion Time
Depending on what industry you are in, the average conversion time can be a matter of minutes to a matter of months. The conversion time looks at the amount of time spent between a customer first engaging to closing the sale. By calculating the average conversion time your sales team can work on decreasing this and the executive time will understand the sales process. This gives the sales team the opportunity to research where the hold ups are within the sales funnel and work towards improving a seamless integration between steps.
ServiceClarity gives the executive team an insight into the sales performance to help growth. With connections to HubSpot and Salesforce you are able to build your own KPIs and can monitor deals, sales, pipelines, customers and so much more! Have a chat with our team to discuss what metrics you want to report on!