What metrics do Sales Managers need to track to achieve success?

Hey, talk time in sales? It's like deep-dish pizza, the more ya have, the better it gets. But, don't forget who you're servin' it to. You wouldn't give a Chicago classic to someone expecting a New York slice. It's all about getting the right pie to the right folks, ya know?

Tracking by revenue & sales quota is the basic to track quota or target. But, there should be other parameters such as adding new customer logos to business, new brands, reviving dead / lost customers & effective closure in realistic time with relevant solution.

Tracking revenue and quota attainment is an important first step. It allows you to assess whether your team is meeting or exceeding sales targets, enabling you to make data-driven decisions. The next step should also be to track what is happening at a more macro level; whether it’s by geographic location, by class of products, or other factors. It is important to do this to understand how some external or macro factors might be impacting sales too.

In addition to tracking overall revenue and quota attainment, it's valuable to dive deeper into the customer journey. Understanding the sales pipeline, from lead generation to conversion, provides insights into the effectiveness of each stage. This allows us to identify areas that may need improvement or optimization. Moreover, customer satisfaction and retention are essential indicators of long-term success.

Increase in sales revenue compared to a previous period, Pipeline Value, Conversion rates, Win rates, Activity (calls, emails, meetings,...)

Conversion metrics should be tracked at every stage of the funnel. Call/Email > Connect Connect > Meeting Meeting > Opportunity Opportunity > Qualified and so forth… This level of granularity makes it easier to pinpoint the areas contributing to a reps success or failure. Every conversion metric is determined by a number of variables, and once we know which metric to focus on, we can dissect these variables to either reinforce the successful habits or coach toward the unsuccessful habits.

Defining the sales process with key inflection points is crucial. The Hawthorne effect states that activity monitored is activity improved. Once data is gathered and tracked (could be time between stages, drop off % at each stage and relative performance between team members) the areas of opportunities will reveal themselves.

Même si ces indicateurs sont utiles, il est tout de même nécessaire de pondérer les enseignements que nous en tirons, notamment au niveau du taux de conversation. En effet, dans des cycles de vente plus "traditionnels" ou non digitaux, beaucoup de facteurs extérieurs peuvent faire varier le cycle de vente et baisser le taux de conversion. (Culture différente, conditions climatiques, PIB par habitant). A l'intérieur même d'un pays, le taux de conversion d'un même produit va être différent selon les régions sans qu'une action puisse le corriger. Il ne faut pas suivre un KPI pour le fait de suivre un KPI. Il faut suivre un indicateur dans l'optique de tirer une le?on et de mettre en place des actions correctives.

Beyond measuring the sales cycle and conversion rate, it's valuable to dissect these metrics at different stages of the sales process. Analyzing how long prospects spend in each stage of the cycle and the conversion rates at each step provides granular insights. This allows us to pinpoint potential bottlenecks or areas where prospects might need additional support or information. Moreover, consider evaluating the impact of marketing efforts on the sales cycle and conversion rate. Assess how well the marketing strategies attract and nurture leads before they enter the sales funnel. Collaborating closely with the marketing team can help align efforts and ensure a seamless transition from lead generation to the sales process.

building a customer-centric culture within the sales team is essential. Encouraging a mindset that prioritizes customer needs, listens actively, and goes above and beyond fosters stronger relationships. This, in turn, contributes to not only retention but also to customers becoming advocates for your brand.

In my opinion, retention is one of the most powerful metrics available. If you can make a sale, that's awesome - If the same client comes back to upgrade or take on more of your options, that's even better. And ultimately, if they come back time and time again and bring more people to your platform, that is priceless. It costs 5X as much to acquire new customers than it does to retain the ones you have. So data in this area should definitely be a key metric of performance.

Sales rep performance and activity can be tracked. However, ensuring that you are tracking relevant, and important aspects are important too. There is a balance between providing autonomy and following specific engagement methods or tools. Autonomy to try out new things, make mistakes, learn from them are all important in developing as a sales person. At the same time guidance in terms of perhaps best practices is also necessary. Knowing which to prioritise at different times with your different team members is key.

In addition to measuring individual performance, it's beneficial to assess the collaboration and teamwork within the sales team. Encouraging a culture of knowledge sharing and mutual support can enhance overall productivity. When sales reps work together cohesively, they can leverage each other's strengths and insights, leading to collective success.

Most of us were a sales person at one point. One of the first things you will learn is that there will be ups and downs, moments where you doubt yourself, doubt your ability and doubt the reason you chose to be in Sales. Your role as a manager is to help them see that, and to help them grow, succeed and build resilience that can help them continue to learn and adapt to each phase; whether it’s a low or high phase. Additionally, being empathetic, understanding individual strengths and weaknesses, and demonstrating that you are invested in their success can contribute to a motivated and engaged sales team.

Engaged sales reps hit quota, stay longer, and build culture. Yet sales leaders overlook engagement as a metric far too often. Why? Because they aren’t putting people first. They’re only focused on the numbers. In reality, if we focus on developing engaged people, the numbers will often take care of themself. There are great tools out there to track and improve employee engagement. Most are modelled around a standardized survey on a recurring frequency (e.g. weekly, monthly, quarterly, annually…). Running such an engagement survey should be a staple for all sales teams.

Fostering open communication channels within the team is vital. Regular check-ins, whether one-on-one or through team meetings, provide opportunities for sales reps to express their thoughts, share successes, and voice any concerns. This creates a culture of transparency and shows that their opinions are valued.

In addition to self-assessment, consider implementing regular reflective practices. Take time to analyze both successful outcomes and challenges. Reflecting on your decisions, the impact of your communication, and the effectiveness of your leadership style provides valuable insights for continuous improvement.

Tangible sales manager metrics: hours spent coaching, calls listened to, calls commented on. Take your least performing rep & your highest performing rep and compare metrics.

Making the leap from sales practitioner to sales manager doesn’t have as much to do with being a rock star that boasts the highest close rate so much as your ability to motivate, lead, and elevate others to achieve more. While all sales managers undoubtedly need hands-on experience converting prospects into customers themselves, there are a wide range of other (equally important) sales manager skills you’ll need to command to excel in this role.

In my experience, revenue, KPIs, and return rates are all excellent ways to track success. I also believe validation of planning and execution is vital to sales strategy, but more importantly, to the employee. Efficiency drives success while simultaneously decreasing the many stressors associated with the sales industry. I have found that employees who reflect “steady” or “compliance” behavior often struggle with building a plan yet thrive in executing the plan, and vice versa for “dominant” or “influencer” behaviors. Consistent follow-up, coupled with a solid training plan, in said areas promote long term success and employee satisfaction.