As a manager in sales it is ultimately your responsibility to keep your sales team accountable to their or organizational and personal goals- but how?
Well, we do agree with you when you say that tracking sales metrics for creating monthly sales report is extremely time-consuming.
Hence as one of the award-winning vendors of Salesforce Alternative CRM solutions with thousands of easy to use CRM implementations across the global marketplace here are some of the key sales KPIs (Key Performance Indicators) you must focus on to create your team’s monthly sales report despite the overwhelming amount of data being thrown on your way. And which can be your secret weapon in developing high-performing sales teams predicting rapid business growth.
The opportunity-to-win ratio which is also known as the win rate is used for measuring the success of your sales team per opportunity over a predefined time window.
Now to calcite this KPI you need to compare the number of closed and won opportunities against all closed opportunities within the same time frame (both “closed won” and “closed lost”), which can provide you as a manager a high-level view of the overall success score of your sales team.
Managers in sales can even track this KPI in the monthly sales reports to identify strengths and weaknesses among individual reps and thereafter take corrective actions accordingly.
Here is how you can calculate this KPI using your sales CRM software:
Win Rate = the number of “closed won” opportunities divided by the number of “closed” opportunities (“closed won” + “closed lost”) in the same frame of time.
This KPI which is also known as the Close Rate is measured to calculate the effectiveness of your sales funnel.
Now we all know irrespective of whether we buy leads from the marketplace or use a free lead generation tool, the process of lead generation starts at the top of the funnel, and thereafter every lead works its way down the funnel which requires the deft expertise of the members of the sales team.
In other words, conversion rate provides both marketing and sales insights to the quality of leads arriving into the sales funnel through the marketing campaigns created by your marketing team.
Hence to measure your teams’ lead conversion rate, primarily you as a manager need to determine what is considered “being converted” in the eyes of your employees.
Now typically any lead is deemed to be converted once the lead becomes a paying customer.
Now the average conversion rate generally varies from one industry to another. Nevertheless, it is critical to track the conversion rate from either side which includes SQLs (Sales Qualified Leads) or MQLs (Marketing Qualified Leads).
Here is how you can calculate this KPI using your business CRM software:
Lead Conversion Rate = (The total number of New Customers divided by the total number of Leads) multiplied by 100.
Average Deal Size
This KPI is going to provide you with the initiation point to enlarge the size of your deals.
It is a tool that is going to aid you as a manager to keep track of inflowing revenues and act as a pivotal guideline for how many deals you require to close to reach (or even surpass) your quotas.
This KPI also helps the managers in sales to identify at-risk opportunities.
This is because, if you keep track of this KPI month-over-month as you create your monthly sales report, this metric can help you understand how or when you need to change your sales pipeline.
For example, if you increase the average deal size of your orders you might attract leads with a wider range of needs than what you required in the previous months.
Average Days to Close
This KPI is based on how long your sales reps take to close a deal right from the lead’s first point of contact to the conversion of the lead into a loyal customer.
In other words, this is a metric that can provide you insights as a manager as to how fast your sales reps are capable of moving prospects through their sales pipelines and turn them into revenue for your company.
Now different sales cycles are needed to close different deals. For example, a bigger opportunity might take a significantly longer time to close than one which will generate lesser revenue.
Here is how you can calculate this KPI using your all in one CRM software:
Average Days to Close = Add all days it took to close deals for the month and after that divide, the number by the number of deals closed that month.
Time Spent In Each Stage Of The Pipeline
Knowing about the number of deals that are there in each stage of your business growth tool’s sales pipeline will help to reveal how your prospects are moving through your pipeline and also where there are facing bottlenecks.
In other words, this metric provides deep insights into developing different sales techniques to push prospects from one stage to the next.
However, as a sales manager, you must ensure that the stages in your sales pipeline are based on what is actually happening in the sales arena, and not on how your sales reps feel, since you can always feel confident about a deal, but it never means that the prospect will obviously close.
Customer Churn Rate
This KPI in the easy to use CRM answers the question: How good are you at keeping your customers?
Therefore, if there is just one sales metric that you want to show to your employees in your monthly sales report and focus on every month – CCR would likely be the only one.
This is because knowing your brand’s churn rate means knowing why or how often your customer is leaving you for another in your marketplace.
Remember once your brand’s churn rate becomes too high, it means you surely need to make improvements in your sales tactics and find new business growth ideas, for the future success of your company.
Average Lead Response Time
According to research, it states that more than 50 percent of buyers choose the vendor or seller that responds first.
Therefore, learning this metric helps to understand the average time your sales reps take to reach out to a lead after they have been identified as a prospective contact for your company.
Now even though each company will have their own description of what a lead means to their business, but typically in general a lead refers to an individual or organization downloading a piece of content or fill out a request for a demo.
Here is how you can calculate this KPI using your marketing CRM software:
Average Lead Response Time = Sum of the number of minutes/hours/day to respond for all contacts divided by the number of contacts in your CRM database.
Now even though there are in reality endless sales metrics that you can use for filling up your monthly sales report.
These metrics and KPIs illustrated above will not only scale productivity but it will help to easily boost the performance of your sales team and so make you find respect among your employees as an ideal “Boss” – showing them the path for rapid and sure business growth.