If you are only measuring your sales reps’ performance by revenue, then you are missing the point. Of course, revenue-based sales metrics will tell you if your team is meeting sales quotas or not. But, they’re not going to provide an explanation as to exactly why they are or they aren’t. And that is truly the most valuable information to have if you want your team to be successful and continue to be successful moving forward.
Do you understand exactly what is driving wins? Are you paying for wins that the rep didn’t really earn? For underperforming territories, do you have an effort problem or a market problem? These are the kinds of questions that the sales data that you are measuring/tracking should be able to answer.
Sales metrics that dive into productivity will tell the story you need to follow to continue to make informed management decisions to drive success.
In this article, we’ve put together 7 sales performance metrics that go deeper than just revenue numbers and will help you really measure your reps’ success.
Non-Revenue-Based Sales Productivity Metrics You Should Be Tracking:
Productivity-based sales metrics, which show the amount and type of input that is being completed by your reps, can be measured against the output (revenue numbers). Then you’ll be able to determine exactly what is working to drive revenue and where changes may need to be made to increase sales efficiency and effectiveness.
Some of these types of metrics that you should be tracking include:
# of Sales Activities Per Rep
This productivity-based metric measures the total number of daily and weekly sales activities per rep. In tracking this data, you will easily be able to see if your reps are really putting in the effort. Knowing exactly which reps are and which aren’t will give you the information needed to make data-backed decisions on where more sales coaching efforts may need to be focused.
# of Sales Activities Per Dollar Generated
Another metric you should be tracking is the average number of sales activities per dollar of revenue generated. This data will give you an idea of the current sales efficiency of your team and help you determine if they are building profitable relationships that deliver business value.
Types of Sales Activities Being Performed
This performance metric dives a little deeper into the number of sales activities per rep metric mentioned above. It is important to be able to see exactly how many of each specific sales activity each of your reps is performing.
The goal of tracking this particular metric is to determine if your reps are following an effective sales process and that customers are experiencing a seamless buying journey (your sales funnel). For example, are they complementing calls and emails with in-person visits and demos? Are they following up by email with prospects after initial visits?
Some of the specific activities that this metric should include are:
- Phone calls
- In-person meetings scheduled
- Social media engagement
- Sales demos/presentations performed
- Proposals/quotes sent
Tracking the number of new leads that your reps are adding to your sales CRM is extremely beneficial for determining the strength of your team’s prospecting efforts. This information will tell you if reps are actually doing prospecting work to find new customers (and how effectively they are doing it) or if they’re just relying on their existing book of business and driving past potential new revenue.
Another valuable metric to track is how much new pipeline is added each week. This answers the question of how much new opportunity your reps have flowing into your sales pipeline and gives you a window into the future revenue. Thus, providing valuable data from both a productivity and a quantitative forecasting aspect.
Accounts Out of Cadence
The last thing you want is valuable revenue opportunities falling through the cracks. This metric measures the number of accounts that have fallen out of the defined sales cadence and have not been touched in a while. Tracking this information will tell you if your reps are following up with accounts as frequently as they should or if they may be over-investing in their favorites.
Marketing Collateral Utilization by Sales Reps
This metric can be measured in a couple of ways, including the percentage of reps that are using marketing collateral, the percentage of available marketing collateral that is being used by your reps, and exactly which collateral is being used. Having this data will help gauge the role that your marketing team’s efforts are playing in the sales process and the effectiveness of the current marketing collateral.
Look Further Than Just Revenue Metrics to Truly Drive the Success of Your Sales Team
Non-revenue-based sales metrics will help fill in the gaps in information that revenue numbers can’t offer, giving you a clearer picture of the state of your team’s sales efforts and why. With the metrics above, you’ll be able to confidently evaluate the type of input that results in the largest output (wins/revenue).
That information can then be used to confidently drive the actions you and your team take to create a successful sales process that can be replicated over and over. This will, in turn, lead to more sales effectiveness and more predictable growth.
Start tracking these metrics today and help optimize the success of your sales team!