To successfully close a sales deal, things like a luring offer, right set of people, great manager ratios, and project pipeline are mandatory. To constantly meet or exceed revenue targets, project pipeline needs to be real.
In this article at Spitfire, Trevor Van Rensburg shares few sales metrics that may help in improving business growth. By adopting the right sales metrics for a venture, it would be easier to manage sales effectively and close more deals.
Benefits of Sales Metrics
The sales metrics help in displaying a measurable value that shows the progress of an organization’s business goals. It helps in measuring if the organization has achieved its business goals within a planned time frame. The author suggests these sales metrics to focus on:
- Source of Revenue: Start by tracking the source of revenue and focus on maximizing the efforts in the areas that deliver the most value.
- Overall Acquisition Cost: Use marketing spend to measure the cost of acquisition. There is also real cost of manpower on a deal or project to consider. Measure the staff salary and all the other associated costs like laptops, office space, annual leave, and healthcare.
- Length of Sales Cycle: It is essential to decrease the sales cycles over time as the salespeople become knowledgeable. The marketing teams must also know the right channels to attract prospective consumers.
- Open Opportunities: List out the opportunities in the pipeline to understand the current position of the prospective deals coming your way and the amount of work that needs to be done. It is also essential to assess the weekly opportunities and move them to the right deal stage in your pipeline. It will help you keep the sales cycle and pipeline accurately.
- Average Deal Value: It is pivotal to know the average deal size to flag deals that may have high-risk of not closing. A mix of large and small deals is the sign for most businesses.
- Win Rate: Knowing the win rate helps to accurately forecast and discover the most difficult stages of the business to get through.
The author suggests focusing on marketing metrics as you understand the sales metrics. Build this back into marketing goals to identify the right conversion rates. Click on the following link to read the original article: https://blog.spitfireinbound.com/choose-right-sales-metrics-measure-your-business-success