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Have you ever noticed you spend less with a wad of cash versus a credit card? With cash, you physically see how much is leaving your wallet. With a credit card, you blindly spend – only noticing your bill go higher when you check online. When you can see and track your progress, you become more aware and conscientious of your decisions. What gets measured gets done.
Motivating your sales team to become top performers isn’t always easy. Sometimes you need to display concrete data to show how your staff is actually performing and which team members to reward. You can highlight this important information on TVs around your office, so employees can stay ahead of their game and cultivate a more competitive sales environment.
Certain KPIs can help you increase sales by empowering you with the information you need to make better decisions. Most companies rely on KPIs that are too basic. You often track how many phone calls are made and the time spent on the phone. This isn’t always effective. It’s too narrow of a view to make any effective decisions. The five following KPIs provide insights into sales performance in a way that’s actionable.
When you measure Month-Over-Month Growth, you look to see how an employee, department or company improved this month over last month, in terms of revenue and the number of deals closed. If an employee still isn’t reaching the daily performance goals, it’s worth seeing if there’s at least some improvement in his or her performance over last month. You always want to make this month is a better month than the last one. Measuring Month-Over-Month Growth is a good way to identify the reps who are kicking butt, as well as reps who are either showing progress or not.
The Opportunity Win Rate examines how many leads were won, divided by the total number of leads. It’s a great way to see how effective your sales team is at converting prospects into customers. If your Opportunity Win Rate is high, you may want to find a way to funnel more qualified leads to your sales team to secure even more sales. If your Opportunity Win Rate is low, your sales team might need more training to close more deals and re-evaluate your sales processes.
Similar to the Opportunity Win Rate, the # Closed/# Leads measures the amount of leads closed over the number of leads total. This is different than the Opportunity Win Rate, which only compares deals that were won. You want to know how many leads were closed to determine if your reps properly work a lead to close. If your # Closed/# Leads rate is on the lower side, it’s likely that your team needs to better nurture and follow-up with each lead to increase the likelihood of a sale.
The more often your sales team contacts potential customers, the more successful they’ll be as salespeople. The Rate of Contact measures how many leads a team member has contacted. Many sales teams only measure how many phone calls were placed or how many companies were visited. That can be a mistake. You want a deeper look that includes how many emails and follow-ups were sent in addition to phone calls and visits. This provides a clearer overview of what it took to close a deal and how effective your processes are.
Marketers use the Email Click-Through Rate to know how many emails were opened, read and clicked through to whatever website page you wanted to be seen (landing and resource pages). Sales teams also benefit from measuring their Email Click-Through Rate as it shows how effective their emails to leads are. If the Email Click-Through Rate is low, it’s worth trying to change the style of the emails to be more engaging and convincing.
There are many KPIs you can track for your sales team. Try out these five KPIs to provide a more thorough overview of your sales team’s performance. If you discover opportunities for improvement, you can go ahead and make changes to improve your results.
Remember – if you’re not measuring it, it’s probably not getting done (or done as well).