It is natural that sales managers who run a successful sales team use data to measure success. They measure task achievement using KPI (Key performance index) based upon culture involving critical evaluation of their teams. Let’s take an example: assume a sales manager who wanted to improve average time period taken by his sales representatives to close a deal. He will analyze the data regarding his sales reps and will identify fastest sales representatives. In the next step, he will study strategies and tactics that can be used by the slower sales reps to boost their close time and show improvements. This will help in improving the overall average deal closing time in the firm.
Opportunities like these exist in every business environment and can yield great profits. Every business has end goals to improve its sales and revenues. A very common mistake observed in a sales environment is that they assume, high revenue generating sales reps possess no window for improvement. But, an approach of setting new KPI will help to explore areas of improvement and learning that are not visible otherwise. For example, a top sales representative, who is very good with sales closing time, but face difficulties in engaging clients in pre-sales emails and hence his efficiency is impacted negatively. By working on tactics he uses for pre-sales engagement his revenues can be boosted even further.
Deciding which factors should be measured is a very difficult task. It is a common observation that managers put a great deal of effort in monitoring and measuring each and everything. This much spread of effort for controlling everything often results in a poor outcome. Now, to rescue sales manager from this much hassle, section by the name of VTiger 7 sales insight is here. It helps in measuring and charting key metrics with respect to the time. So, that your sales teams can get help from it. Following are 7 different types of metrics and their functionality.
In the current business environment, communication with the prospect are the most important part of the deal and sales associates do this using phone calls, emails, meetings, etc. To keep a check on whether sales associates are performing the required number of tasks, activity count can be used. It points out the sales representative who are conducting most activities and representatives who need support. After locating the reps who are not performing minimum required activities, managers can offer their help to such sales associates and improve overall performance.
Activity efficiency helps in measuring how well the efforts of a sales associate is paying off. Hundreds of calls and emails go in vain if they fail to attract and engage a customer. These tools empower managers to point out sales reps who need coaching regarding negotiations and decision-making tactics.
Customers who are of more value also deserves more attention. This attention can be provided to them by staying in touch with them more frequently using phone calls, emails, and meetings. These regular interactions make a customer feel that he was regarded and treated with special care. But, on the other hand, due to their hectic schedule, sales associates fail to recall their commitment to the customer.
The number of activities regarding an opportunity is shown in Pipeline activity by the owner. The best case scenario is the one in which highest number of activities are performed on the opportunity with the highest value. A sales manager can use pipeline activity by an owner to track down opportunities on which the number of activities performed is not enough. After that manager can guide sales associate to increase the number of activities on such opportunities and keep the interest of customer intact.
Pipeline values are the aggregate of opportunities value on which your sales team is working for a specific time period. Sales managers have to keep a check on volume of sales opportunities brought by sales associates and the number of deals close to them to make sure the pipeline is healthy. Sales manager feature of VTiger 7 helps to evaluate the opportunities won and opportunities lost with respect to the total opportunities. If the number of sales opportunities lost exceed a predefined value, sales managers have to identify the cause of sales reps failure to close the deal. The failure can result because of unqualified leads or untrained sales staff.
Converting an opportunity into a closed deal consist of several steps and to make the process better, sales manager should recognize the stage in which the most of the opportunities are lost. Sales funnel analysis helps in identifying the stage which is most problematic. If the rejection is observed in earlier stages of the cycle, it can be overcome by training associates in regard to relationship building with the prospect. If the failure is witnessed in later stages then sales associates should be trained to improve negotiation skills and handle rejection in a better manner.
With the increase in a sales associates experience in the field, the time period to cease a deal is expected to decrease. VTiger 7 sales cycle by duration helps to keep a check on the amount of average time sales associate spending on each stage of making a deal with the client. It helps sales managers to locate the stage at which a sales representative spent most time or more time than required, by recognizing that phase sales managers can offer help to the sales associates. For example, if a sales rep is spending more than required time on mid-funnel phases, that means he needs coaching regarding the negotiation skills.
Sales managers locate the low performers and organize coaching sessions to work on their deficiencies, hence overall growth in revenues can be observed. Suppose a firm makes $350 million dollars when their win rate is 42% and at 60% win rate the same firm earns revenue totaling up to $550 million. This means the revenue of the firm inclined by 57%. The interesting part is that the increase in sales revenue is achieved without employing more sales associates, instead, it was achieved by helping the existing sales staff using win rate feature of VTiger 7 CRM.