How would you define sales success? Truly successful sales managers leverage sales training with Key Performance Indicators (KPI) to boost both numbers and morale. Learn how to measure success in sales by choosing the right KPIs for your firm.
Learning How to Measure Success in Sales
While tracking final sales is important to any firm, relying on sales numbers as your sole success metric won’t work for long in sales and sales training. That’s because sales are a lagging indicator, which means that you won’t notice there’s a problem until after your firm or your team’s performance has begun to slide.
Defining success through leading indicators
As a leader, it’s your job to develop leading indicators for employee productivity that enable you to track sales training issues and behaviors before they begin. That’s where leading indicators, also known as KPIs, come into play.
KPIs are leading indicators or metrics that ensure the health of your current sales pipeline and any potential future sales. Because KPI’s are trackable, they give sales managers a means for how to measure salesperson performance in a variety of capacities.
Why sales training about your pipeline is crucial to defining KPIs
Deciding how to measure sales effectiveness and which KPIs to choose can be difficult for sales managers; so can figuring out how to measure KPIs correctly. Key to this, is knowing the difference between your sales pipeline (all of your team’s potential sales opportunities) and your sales forecast (those qualified opportunities you expect your team to close in a reporting period).
Although you may use different terms in your firm or agency, understanding and communicating the fundamental differences between these two sets of leads is essential to sales training and KPI development.
Deciding how to measure success in sales for your firm
By taking the time to define the nature of your pipeline and sales process adequately, sales managers can create practical tools and benchmarks for their sales teams. Establishing how to measure sales performance metrics for your firm makes it easier for managers to predict the future success of their sales with incredible accuracy.
The KPIs that every sales manager should be measuring are:
- How many qualified leads are in the pipeline
- What is the current sales cycle length
- How long it takes your team to convert a prospect into a qualified lead
- Ratio of qualified leads to submitted proposals
- Staff wins and opportunities for further sales training
- A short list of top performers
- How many new clients brought in each month
- Conversion rates for cold leads that become qualified leads
Because KPI’s can also highlight the need for intervention through sales training or one-on-one coaching, measuring sales effectiveness and monitoring performance are crucial to maintaining numbers as much as moral.
Successful sales managers are also sure to incorporate their team determining how to measure success in sales for your organization. By investing in defining success with your team, you ensure that they stay engaged with their goals and can get rewarded for their accomplishments.
Elevate Your Understanding of Success in Sales
Getting to know your KPIs can be a daunting task for any sales manager; fortunately, you don’t have to do it alone. From sales training to helping you decide how to measure success in sales for your firm, give your team the tools it needs for success in 2018 and beyond.