Are you managing an inside sales team? Are they failing to jump on the phone and make the calls? If yes, what does the phone mean to them?
There is no secret that a debate exists among many sales managers on how to track the performance of a sales team; and this is particularly true when it comes to the discussion around inside sales. What’s more important: the number of calls a sales rep makes, or the quality of the call? Let’s face it, if you’re not making calls, you can’t measure the quality. We recommend you need to monitor & set KPIs for both.
Maybe a bigger question, does your sales team have enough revenue opportunity to hit their sales target? Maybe they don’t have enough leads to make the calls?
In order for a sales team to succeed, the Sales manager or Sales director needs to measure the revenue opportunity using 3 key factors:
If you find yourself nodding in response to any of these questions, Heuston we have a problem. In most companies these factors are brought back in line by the management team.
Assuming that your revenue opportunity is in place, to increase productivity of your sales team, you need to drill down and understand the performance levels of each person. Here’s our 6 suggested KPIs:
It’s important to know how each salesperson is progressing along their sales cycle. If you’re not having much success on your first call attempt, chances are you’ll probably have a low conversion rate by the time you get to close a sale.
Here’s an example of a good sales pipeline progression:
The second example highlights that the sales rep is failing to get past the gate keeper, and is struggling to schedule time with the decision maker. Monitoring the sales cycle progression will help you identify coaching and training opportunities for the salesperson to help improve efficiency of their outbound calls. For more information on qualifying sales leads and differentiating between cold and warm leads, check out our in-depth lead generation guide.
I’ve often heard people say that a 10% conversion rate for an inside sales team is quite good. Again, this can vary from company to company. If your company is well known and with a strong market position, your salesperson could generate in excess of a 30% conversion rate, vs a startup which could be generating only a 5-10% conversion rate.
Although a sales rep may have a high conversion rate, make sure to monitor their close lost rate too, as that could also be very high. If it is, it could be that they are burning leads, in which case you need to put out the fire!
When setting a sales target, you must consider the average value of a merchant to be won. I’ve worked with sales teams where they’re winning 1,000s of merchants, which was great, but the average win was so low that they were missing their sales targets by miles. Not so great.
Sales targets are normally set at : country, team, and sales rep level, I recommend you also include targets for:
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