Not all numbers are created equal. Your business needs metrics: measurements that answer your questions about performance and give you strategic insight. These numbers let you know if your goals are realistic, if you’ve hired enough reps, if your messages are gaining traction, and more. Unfortunately, some metrics can lead to confusion and disagreement. Unless each metric is linked to a process that is the responsibility of one or more individuals, measurements will not lead to positive corrective action.
CALLS PER OPPORTUNITY
Why it matters: This measurement of the number of calls your team must make to score a qualified opportunity is a “broad view” metric that reveals whether or not your team is generating high-quality leads. Poor performance here (lower is better) should lead to a close examination of your buyer personas.
How to improve: Take a closer look at the leads you are targeting. Study the titles and roles that are influencers and decision-makers. Implement a lead nurturing program.
CALLS PER CONVERSATION
Why it matters: Conversations get your pipeline moving. This measurement illuminates whether or not your sales team is able to actually get in touch with your target market. Lower is better—if this number is too high, your team is spending too much time leaving voicemails or talking to people who can’t help move a deal forward.
How to improve: Study the times of day that yield high contact rates in your market. Try using different channels to establish contact and warm up your calls. A personal email or a social media touchpoint can help.
CONVERSATIONS PER APPOINTMENT
Why it matters: Do your conversations entice leads to take the next step? Monitoring this metric is the best way to know if your message is compelling and clear. If your conversations per appointment are higher than your target, your reps are struggling to convey value to leads. How to improve: Implement a process of regular training with experienced sales coaches. Focus on refining conversations. Learn which questions help identify a lead’s current state and their ideal “dream state.”
APPOINTMENTS PER OPPORTUNITY
Why it matters: This metric reveals how many appointments are needed to create a genuine sales opportunity. Low numbers here are a good indication that you’ve identified your ideal buyers and know their buying process well.
How to improve: Create documented process for reviewing both successful and unsuccessful appointments. Work on helping reps convey value by using social proof, success stories, and ROI.
PIPELINE VALUE VS REVENUE FORECAST
Target: 300- 400%
Why it matters: This forward-looking metric gives your insight into your upcoming sales opportunities. Unlike other metrics we’ve mentioned, this ratio can be either high or low—there’s a “sweet spot.” Keeping this number in the target range ensures your sales team will be able to keep the pipeline moving smoothly.
How to improve: If this number is too high, examine your pipeline for any unqualified leads. Spend your time focusing on the best prospects. Low numbers should prompt more lead generation activity.
THE BIG PICTURE
By monitoring these crucial metrics, growing companies can visualize the sales pipeline, plan strategy, avoid obstacles, and gauge healthy growth. Businesses that commit to analyzing these numbers and learning from them can expect iterative improvement throughout their sales team.
Perfecting the sales process is a big commitment. If you’re looking for a partner with experience in this area, contact NuGrowth. We hire and lead results- oriented business development teams and support them with exceptional lead generation marketing. Partner with us for sales and marketing strategy built to succeed.
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