Businesses today have access to heaps of sales data that offer the ability to measure a lot more than revenue. A set of new sales metrics is emerging that enables sales leaders to not only gain a deeper understanding of their sales performance, but to also identify the specific steps that can be taken to impact growth.
These metrics can be broken into 5 key categories:
Capacity metrics work to help you understand the workload of your team and the maximum revenue that can be generated given your number of reps. If you’re unsure whether your team is reaching its full potential, or are worried that reps might be overwhelmed, these metrics will allow you to better measure and maximize their productivity.
Cost & Revenue Metrics
Is your team falling short of its forecast? Not sure how your spend is stacking up against your sales? These metrics help you understand the monetary cost and value associated with your customers so that you can plan and predict future performance in a way that will maximize your profits.
Process measures are used to understand how leads and opportunities flow through your sales pipeline. Breaking conversion rates down stage-by-stage allows you to pinpoint bottlenecks and inefficiencies at various points within your sales process, revealing actionable insights around how to increase revenue.
Curious how to calculate the value of a lead in your pipeline? What about understanding how that lead compares to a lead from another source? Yield measures are used to understand how much value you get in return for your investments at each stage of the sales pipeline.
The Sales Formula
The Sales Formula provides a consistent and reliable way to measure and evaluate your sales strategy over time across key conversion points needed to turn a lead into a closed deal.
Lead yield is just one example of a yield measure, and can be calculated using the following simple formula:
Sales Revenue / # of Leads Generated
Understanding your lead yield enables you to more accurately score and prioritize leads from your various marketing channels and sources based on those that ultimately generate the most value for your business. It also gives you deeper insight into the qualities you should be looking for when it comes to prospecting – i.e. contact title, company size, industry, other technologies in use, etc.
Get the White Paper
For a full breakdown of the new sales metrics in each of these categories, check out our newest white paper, Understanding the New Metrics of Sales.