“What you can’t trace, you can’t measure”. By tracking important sales operation metrics, you can analyze the performance of your team, as well as take steps for enhancing your ROI.
There’s a wide variety of reports, and data points, ranging from the proportion of salespeople who use your CRM and cohort retention rate to the average time to hire and sales velocity. This list of must-track sales operations metrics can assist you in making informed decisions regarding your sales process:
Time devoted to selling
Lead generation could be taking up your salespeople’s time. Sales automation software or customer relationship management (CRM) system can help you in tracking the time a team spends at each phase.
Time to Respond to a Lead
The longer it takes your team to reply to leads who are interested, the more likely the opportunity will be lost. If you do not reply in a 24-hour time frame, they may have connected with one of your competitors, lost interest, bought another, or completely changed their mind.
Chances of Winning
The rate of winning opportunities is simply the percentage of your total sales opportunities.If you want a win rate of 20 percent, you need to close 20 out of every 100 sales opportunities. When chances of winning increase, you can confidently make use of every sales opportunity to predict future win rates.
Sales Pipeline Coverage (SPC)
Among one of the valuable metrics is sales pipeline coverage (SPC). It helps your team get sufficient opportunity in making a sales quota for a certain time. Your SPC ratio is a comparison between pipeline coverage with the sales quota set.
Customer Acquisition Cost (CAC)
The costs for customer procurement enable you to understand the costs related to your business development and customer base expansion. This is particularly important for startups that try to scale fast.
Customer Lifetime Value (CLV)
The size of the initial purchase by the new customer doesn’t restrict the value that it adds to your business. Customer lifetime value (CLV) is the cumulated value that a buyer offers to the customer over a lifetime.
Key Takeaways on Sales Operation Metrics
To determine which elements are influencing their team’s capacity to perform, sales managers must go beyond quotas and revenue. Tracking the sales metrics stated above will help you pinpoint the source of any sales spikes or dips, allowing you to analyze if your team is doing well and address any issues that are obstructing your performance.
Visit this article to discover a deep dive into sales operations.