Discipline is a key part of growing as a sales organization – particularly when you’re using customer relationship management (CRM) software. If your sales team doesn’t see the value in CRM tools like Salesforce, then they’ll write it off as something that adds more work to their already busy schedules.
In truth, Salesforce does help sales management a great deal by quantifying and measuring data regarding what stage deals are in and which representatives are working what leads. However, the end goal is not overreaching management, but improved revenue growth.
Our teams should understand that CRM software is meant to increase productivity and close more sales.
In order to grow revenue, sales managers must measure the performance of each sales representative to create baselines for improvement.
Measuring performance first means having key performance indicators (KPIs) in place. Using standard KPIs for everyone on your team helps systematize effective strategies and creates an overall higher performing team.
Which KPIs are most important? Here are several critical areas that you should measure:
Lead Response Time
Keeping response time to a minimum has long-been a key part of a successful sales strategy, because interest has a short life span.
The Harvard Business Review validated this idea when they found that businesses who contact online leads within an hour of receiving a request are seven times for likely to convert the lead.
Salesforce can measure the time in between a lead gets assigned to a rep and the time a call or email is logged, which is an effective way to measure lead response time. If a certain amount of time passes without any action from the sales rep, you can create a rule in Salesforce that sends a reminder to the sales person.
Use response time as a KPI, and watch your conversion numbers rise.
Sales By Contact Method
In the past, it was common knowledge that every prospect wanted to be contacted by phone. But times change, and email, web chat, and even SMS have all become popular ways to communicate with your audience.
But popularity isn’t an indicator of effectiveness. That’s why another key KPI for your sales team should be sales by channel.
This is relatively simple to track in Salesforce. Just sort closed / won deals by the last contact channel, and you’ll get a good idea of which mediums result in the most closed business.
Sales Funnel Conversions & Win Rate
Few leads begin at the bottom of the funnel. Before an agreement is signed, salespeople must in engage in a series of conversations to move a lead into the closed/won stage.
That means each funnel stage has a conversion rate associated with it, and tracking the average rate at which leads move from one stage to another can be a huge advantage for your sales team.
For example, if most leads stall in the working stage, you’ll know that section of the sales process is a bottleneck, which allows you to optimize your customer acquisition process.
Because of the data within Salesforce, you can get a more accurate picture of your sales team’s performance. By developing a standard set of KPIs for your sales department, you’ll be better able to quantify and analyze a variety of characteristics about your sales process. Once you establish baseline metrics, you can easily compare data on a monthly and quarterly basis.
While calculating this data in spreadsheets is certainly possible, using Salesforce to gather and analyze all the necessary inputs makes the job much simpler.
Using KPIs to measure your team’s performance gives you the information you need to make data-driven decisions as they relate to setting expectations, refining your sales strategy, changing behavior, and coaching your team toward meeting and exceeding their goals.