How to Get Started With Measuring Sales Productivity
By Lisa DeYoung – Account Executive
Many opinions exist surrounding how to track sales productivity, but the process is unique to each sales team. Measuring sales productivity requires a look at all the factors that drive your sales. So, where to start?
First, define your sales process. Having a clear picture of the journey from lead to sale is the first step in understanding how to measure productivity. Next, set quotas for the team to identify a target goal. Tracking conversion rates and calculating the costs of sales are also key. Finally, take advantage of sales tools like CRM software to track and report on sales every step of the way.
Define your sales process.
How do you identify your leads?
Once you’ve found your leads, how do you qualify them?
How do you present your products and services to potential customers?
In what areas are you willing to negotiate?
What are your closing tactics?
How and when will you follow up for repeat business or referral opportunities?
Sales quotas are key to establishing expectations of your sales team. When setting quotas, be sure that they are clear and measurable. Also, be specific with a time frame and make sure they are relevant and attainable.
Track Conversion Rates.
How many of your leads turn into sales? What factors contribute to your team’s success and where can you find room for improvement?
Calculate the costs of sales.
How much are you spending on salaries, commissions and other expenses? Investing in your sales is a necessity, but be sure your ROI is in line with what you need to be profitable.
Use a CRM software.
Using a customer relationship management software like PipelineDeals boosts your ability to track sales productivity. An effective CRM tool will tell you where you are finding your best leads, the rate of converting those leads and what is contributing to your team’s success. Identifying what works and tracking your relationship with your customers will help your team repeat the actions that lead to sales.
Tracking and measuring sales productivity is an important factor in the success of a sales team. Once you know what works, you can repeat the process to increase your sales. Stay on top of your process with the help of sales tools. Looking for a tool to to measure your team’s sales productivity? Try PipelineDeals for free for 14 days.
Lisa is a Customer Ambassador at PipelineDeals and a graduate of Washington State University. Prior to joining PipelineDeals, Lisa spent 8 years working in the wine industry.