When you run a business, one of the most important decisions you need to take is what to measure to evaluate whether your business is growing or not?… The most logical answer would be sales….measure your sales to evaluate success of your company’s growth. However, it is more traditional and it’s high time that it should be changed.
Passionate in Marketing presents you some new sales metrics followed by companies to measure their sales activities. Introducing one of the metrics can real prove to be useful for your business. So here goes the brand new five sales metrics:
1. Touches
Touches are one such metric that measure how many successful customer calls and how many meaningful sales conversations have taken place. The measure is not about evaluating the sales skill but something else such as speed dialing and spamming. Measuring touches will save your time by not letting to run behind the deals that are unlikely to be closed.
Measuring touches will also help to compare salespeople and identify those who are spamming with the calls to earn that extra incentive.
2. Speed to close sales
The metrics track the speed in which the salesperson closes the deal. The metrics is also known as sales cycle time. Speed to close sales metrics will allow you to evaluate as how many days or months or years it took for your salesperson to close a deal. It is a way to evaluate the ability of the salesperson as well to eliminate the bad leads from the sales list.
3. Time-to-respond
This indeed could be a tough measure for you…..but if it is applied it can prove to be effective. Measure the time taken by the customer to respond to the sale proposal. A quick and shorter response time indicate that the customer is willing to take the partnership on a long term basis.
4. Customer response
Track the response of the customers whether good or bad. This will help you to adjust your offerings and ask the salesperson to close the deal with the new offerings.
5. Time-to-cash
It measures the sales man’s ability to convince the customer to pay fast. It also allows you your customers as the one who pay fast is the best customer. This can be also used as another way to measure the ability of sales people in closing the deal.
While all these metrics is time consuming and rigorous, if adopted can bring in visible change to your company and in the balance sheet of the company. So change your traditional metrics and adopt one of these to increase the value of your business and spirit of your salespeople.
