You're in charge of evaluating your sales team's performance. How do you know which metrics to use?

1 Activity metrics

Activity metrics are the indicators of how much effort and time your sales team is putting into their sales process. They include metrics such as number of calls, emails, meetings, demos, proposals, and follow-ups. These metrics help you understand how your sales team is managing their pipeline, prioritizing their tasks, and reaching out to prospects. They also help you identify potential bottlenecks, gaps, and inefficiencies in your sales process. You can use activity metrics to set realistic and achievable goals for your sales team, and to coach them on how to optimize their productivity and time management.

2 Conversion metrics

Conversion metrics are the indicators of how well your sales team is moving prospects through the sales funnel. They include metrics such as lead response time, lead qualification rate, meeting-to-opportunity ratio, opportunity-to-win ratio, and average deal size. These metrics help you understand how your sales team is performing at each stage of the sales cycle, and how they are influencing the decision-making process of the prospects. They also help you identify areas of improvement, best practices, and common challenges for your sales team. You can use conversion metrics to set benchmarks and standards for your sales team, and to coach them on how to improve their sales skills and techniques.

3 Outcome metrics

Outcome metrics are the indicators of how much revenue and profit your sales team is generating for your business. They include metrics such as quota attainment, revenue growth, customer retention, customer lifetime value, and customer satisfaction. These metrics help you understand how your sales team is contributing to the bottom line and the long-term success of your business. They also help you identify the impact and value of your sales coaching efforts, and the return on investment of your sales training and development programs. You can use outcome metrics to set incentives and rewards for your sales team, and to coach them on how to align their goals with the business objectives and the customer needs.

4 Behavioral metrics

Behavioral metrics are the indicators of how your sales team is developing their mindset, attitude, and habits. They include metrics such as self-evaluation, feedback, learning, collaboration, and innovation. These metrics help you understand how your sales team is adapting to changes, challenges, and opportunities in the sales environment. They also help you identify the strengths and weaknesses of your sales team, and the areas of growth and potential for each individual. You can use behavioral metrics to set expectations and norms for your sales team, and to coach them on how to enhance their personal and professional development.

5 How to use metrics effectively

Metrics are powerful tools for sales coaching, but they must be used wisely and strategically to avoid common pitfalls. When selecting metrics, it's important to choose those that match your sales strategy, process, and goals, and that reflect the needs and challenges of your sales team. You should also strive for a balance between the quantity and quality of metrics, focusing on those that are most meaningful and actionable. Metrics should be communicated with purpose and value to your sales team, explaining how they relate to performance, growth, and success. Additionally, metrics should be used to guide rather than judge your sales team; they should be used to identify gaps and opportunities, provide constructive feedback and guidance, celebrate achievements, and motivate growth.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?