Sales KPI’s

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The Perfect Sales Recipe – What Sales Metrics To Use

The Perfect Sales Recipe – What Sales Metrics To Use

Sales Metrics and sales KPI’s matter,for lots of reasons.

Having the right team sales KPI’s and the right individual sales metrics means your chances of achieving sales success are already increased.

The following will help you identify some of the challenges around this area, and for a more step by step guide you can download our free guide. See the link at the end of the article.

What Sales Metrics to Use?

That really depends on what you want to achieve?

And that’s the easiest way to start.

For example, if your primary aim is to drive activity then there are key metrics that will impact that:

  • How much data is available?
  • How much of that data has been called more than 7 times?
  • Average call duration?
  • Average admin time per call?
  • Contact rate for your industry – i.e. ratio of decision maker call/gate keeper call

This is not an exhaustive list, but you’ll get a picture for how you create your very best sales metric template for you.

BUT don’t set up metrics for the sake of it.

Ask yourself; if you had to identify the most critical sales improvement, profit improvement, sales performance improvement sales metric then what would it be, then monitor that by reviewing the intrinsic parts.

Often one of the first and biggest piece of work done in any sales turnaround or sales performance improvement is to agree to measure those sales metrics that have a direct relationship to sales success.

The sales metrics you can control.

The sales metrics you can influence.

Why Use Sales Metrics?

Lots of reasons, primarily it’s an indicator for the sales management and the sales people that you’re all on the same track.

It’s a way of measuring sales progress when the month, week, day is still in play. Check out more on this here

If you’re a sales person, you know you’ll earn bonus, and if not you’ve got some idea of what to do to change that.

If you’re a sales manager, you know what skills to re-coach and with who.

And if you’re the business owner, you don’t have to wait 2 weeks after the month end to discover how much money you’ve made, or not made, as the case may be.

Agile use of your sales metrics is the easiest, quickest and most efficient way to improve sales skills, sales people, sales function performance and bottom line profits.

The key to continuous sales improvement.

Plus, it engages everyone.

Whether you’re using a league table, a weekly sales meeting, a daily sales huddle, everyone is following the same road map.

Everyone is working with the same sign posts and with a supported and directed mission to get there!

When to Proactively Use Sales Metrics?

That’s simple, every day.

Both the team sales metrics/sales KPI’s and the individual numbers.

This is the top of the tree in hands on sales management and sales leadership.

It will focus everyone’s attention on what’s not happening.

Not so you can blame anyone but because now, as a sales leader, you can make it right.

But it helps if you launch that months sales metrics at the beginning of the month. Explain why you’ve selected these metrics. Explore what success looks like, what disaster looks like. Highlight what support the business is providing to help everyone get where they need.

Then you’ve set the premise of expectations, it’s your management guide map for the month.

These sales KPI’s can then be reported/reference daily via huddles, emails, leader board, office screen, 121 sales coaching.

How to Use Your Sales Metrics?

Your selected sales metrics and sales KPI’s are also part of every sales persons sales review.

They form part of every performance management and sales development plan, personal development plan.

Used to drive performance, striving for continuous improvement.

They can also highlight areas where sales training, coaching, shadowing, mentoring or additional support is required.

To foster team spirit and collective sales team focus for the good of the individuals and the business.

A reason to celebrate sales success.

To foster team spirit and shared focus, as well as giving a team platform for discussion and suggestions.

Collective learning, ideal for targeted buddying.

Sales Metrics Matter…but that’s not all

Of course, it’s not all.

No-one manages solely by numbers any more.

Numbers, sales metrics, sales KPI’s well they’re just the foundations. Keeping score.

The real winning benefit is how the sales leadership team use these metrics. Great sales leaders use them to interact, develop, coach and motivate the team.

Having worked with thousands of sales people, I know for sure that the fastest way to improve sales performance is to spend more time coaching and mentoring the sales team.

Having great clarity and shared ownership of group and individual sales metrics/sales KPI’s is the easiest way to do just that.

To get more details on what sales metrics you could monitor in your team, download this free guide 7 Sales Metric You Need to Measure, Manage and Monitor 

Also if you’re really serious about improving sales results within your business, hit the links below:

TurboCharged Sales – for when you are ready to embed a continuous sales improvement framework into your sales team

The Sales Improvement Workshop – the fastest way to refocus, re-energise and improve sales results – one day course inhouse or open – check dates and locations

Sales Audit – for when you want to improve sales results, turnover and profits, but have no idea where to start.

And, if you’re great at getting sales quotes out, but your buyer’s all seem to disappear when you follow up the sales quite check this out Buyer Gone AWOL – Following Up Sales Quotes

To discuss your specific sales training and sales improvement needs you can contact us on 0779 002 1885 or email carol@mortonkyle.com

Remember, having the right sales metrics is critical to any sales function wanting to outperform competitors, drive margins and foster continuous sales improvement.

Sales Performance: A Sales and Business Development System to Deliver Accelerated Sales Growth

Sales Performance: A Sales and Business Development System to Deliver Accelerated Sales Growth

Sales Performance: The Best Sales and Business Development System

Sales and Business Development Functions are worthless if there is no sales and business development system in place which is used throughout the business.

With regard to maximising sales performance, what’s the best sales and business development support system look like?

First of all, let’s think about what your Sales and Business Development System should deliver for you and your business.

We could make this a really complex list and you’d probably go no further than a very complex list, so I’m deliberately going to make my list very simple for you.

Your sales and business development system should deliver:

  1. Quality opportunities that convert to profitable sales
  2. A predictable supply of the above
  3. An opportunity to continuously improve conversions at all stages in the sales process

Just three things. That’s all.

Those three things will deliver you the following:

  1. A regular, predictable and controllable supply of profitable business
  2. An opportunity to accelerate sales growth in a sustainable manner at a controllable rate that is appropriate for your business

What more do you want?

I thought not.

What Should Your Sales and Business Development System Look Like?

Again – it should be really simple.

So simple it’s child’s play.

I’ve seen sales processes that stretch around the block and back again…trust me when I tell you, the more complex your sale process, the more things will go wrong AND, even worse, you’ll rarely be able to find the root cause quickly…that means the sales fix is a million miles away.

Keep it Simple.

Like this:

  • Qualified Leads In
  • Meetings Booked
  • Quotes Out
  • Converted Customers
  • Retained Customers

Too simple?

Too right!

But, in reality, those are the key 5 sections that will affect your profit and your sales throughput.

Sure – there are mini sections inside these 5 sections but the reality is – if you manage these 5 sections and the 4 gates in between them, then you’ll be doing what 90% of the sales teams working today ARE’NT doing.

How good would you feel then?

You see, these four gates (shown in red) – from Leads > Meetings > Quotes > Converted Customers > Retained Customers, will show you exactly what part of your sales process is letting you down.

Once you know that, it’s a very simple deep dive to improve that section.

If you want some guidance on what you can do to improve each of the 5 sections – take a look here.

How to Set Up Your Sales and Business Development System?

3 key rules:

  1. Keep it simple
  2. Don’t make it complicated
  3. Remember rule 1 and rule 2

Seriously, I can’t stress it enough…complicated and complex will kill any ambition you have of accelerated sales growth.

You can wave goodbye to highly predictable sales growth and it will cost you heavily in time, profit and opportunity, plus you’ll be forever cursing the day you spent creating a monster that’s unmanageable.

And you know the worst thing? Without such a simple, transparent and segmented sales and business development system, you’ll be FOREVER reliant on the skills of your transient sales team rather than the potency of your sales engine, and if that doesn’t scare you then stop reading now, because if you’re putting your business performance in the hands of the sales team who can up and off, en mass, in a heart beat then you’re playing with fire.

Trust me.

So, top line – how do you set up a Sales and Business Development System for your business?

Take a look here for an initial insight.

Your Sales and Business Development System – 10 Things to Think About.

Transparency – each section (shown above) should have it’s own high level of transparency, it’s own accountability and it’s own check list

Sales Process – have a sales process that EVERYONE sticks to. No deviation, no hesitation, no question – you’ll never be able to scale and replicate a working and profitable sales and business development system if everyone is doing their own thing – this will help you.

Set KPI’s for each of the 4 gates that exist between the 5 sections. They are the KPI’s you manage every single minute of every single day

Metrics – for additional sales metrics to check you’re on track – down load this

Lead Quality – be very very careful of the leads you put in the top of your sales process – your sales and business development system will die a slow and painful death if you treat all leads as being of equal value and if you shove any old rubbish in there…no point keeping count if you’re just counting worthless buttons…make sure your leads are high quality, pure gold prospects you’d LOVE to work with – for more details check this out for advice on How to Build A Great Sales Funnel

And don’t forget these in your Sales and Business Development System 

Get Creative – to drive accelerated sales growth you’ll need to get creative in each of your 5 sections. Here’s two insights  to show you how you can do that – check them out – download – Only Dead Fish Go With the Flow, check out this blog on How To Increase Price.

You’re Selling What? – think about what you’re actually selling, you’ll be able to get a greater insight into this by asking what your customers are actually buying, because once you understand this not only will you be able to accelerate your sales growth you’ll also be able to increase your prices…here’s a guide to help you – just hit this link

Value – think about what value you bring to the buyer at every single stage. If something in your sales process doesn’t deliver value to the buyer, then serious consider getting rid of it.

Managing Poor Sales Performance – you’ll need to be tough, there’s no point putting up with sub par sales performance if you’re a business committed to sales growth – check this out – How to Deal With Poor Sales Performance 

Get Competitive – be prepared to step out of your comfort zone and make some noise, sure you can still keep your operations covert if you wish, but as far as your prospects, buyers and sales force are concerned – be loud and proud – check this out if you want a nudge in that direction.

And one final thing – make sure you’ve got your sales and senior management team on board acting as sales performance improvement functions, sales coaches, sales problem solvers and sales guides…this is a big task and some of your old guard will rally against the change, check here...if you’re committed to accelerated sales growth I know you’ll do what you need to do.

So can any business set up a sales and business development system?

Yes – any business can.

Few chose to.

Many leave it in the hands of the individual sales functions, sales people, sales managers and they pay the consequences when key sales people leave.

Accelerated sales growth relies on ALL aspects of the business pulling in the same directions – that means any business undertaking such a commitment to increase sales and business performance needs an agreed, workable and sustainable sales and business development system.

Few firms have this.

The cost associated in not having such a system is huge – time, money, market share, brand value, competitor growth, missed opportunity, lack of responsiveness, mediocre business and sales performance…all negatively impacting the bottom line.

I hope you think about how your business could benefit from such a system…

Any questions…call me

Carol

carol@mortonkyle.com

0779 002 1885

If you’re looking for an online sales improvement and business development training course – check out TurboCharged Sales 

 

Sales Performance Improvement – Habit Beats Knowledge Every Time

Sales Performance Improvement – Habit Beats Knowledge Every Time

Sales Performance Improvement – Habit Beats Knowledge Every Time

Sales Performance Improvement is the key driver for continuous sales improvement…better results, bigger results, faster.

If you’re in sales, sales management or running your own business then chances are you’ll be looking for ways to continually boost your sales performance. You’ll be looking for more customers, more profitable clients, in less time, bigger orders, larger average order values, higher conversions…

That’s business. It’s also human nature to ask…is this the best we can do? Can we do it better, easier, faster?

Plus, in sales, it’s a competitive environment. You’re forced to ask these questions. Your shareholders, competitors, stakeholders and bank will be asking you the same.

Here’s the truth about seeking continuous sales performance improvement:

”Once a certain level of skill, knowledge and competence is acquired, then driving Continuous Sales Performance Improvement has more to do with changing habits than increasing knowledge and skills”

You see, if you’ve been in a sales or sales leadership role for any time, you’ll most likely know everything there is to know and that you need to know…and your performance will reflect that.

That might be enough for you, your business, your clients.

But what about what you don’t know?

How important is that?

In his book –The Checklist Manifesto – Atul Gawande strongly, and with good reason once you read his research, advocates the use of extensive check-lists to improve performance.

Sales Performance Improvement works the same way.

Gawande’s background is in medicine. Having piloted and then rolled out his check-list based methodology across many hospitals and medical facilities he details how a simple check-list has saved 100’s of thousands of lives.  He proposes his way of working, the same methodology can be transferred to other industries – and I for one, strongly agree with him.

In truth, anything that saves that number of lives has to be worth a good look at. You’ll agree when you read his evidence. Simply put, if a humble check-list can save that many lives…what could the same do for your business, your sales performance and your sales results?

Worth a look?

So This Relates to Sales Performance Improvement How?

Here’s the premise:

No-one needs a check list for the simple stuff, where there are few variables, when the outcome is low risk, it’s a predictable action with a predictable outcome…

But check-lists have a distinct advantage in those situations where there is a higher level of complexity, more risk, a handful of variables and no guaranteed outcome.

This is the first and last time you’ll see me compare sales to heart surgery but there you go. You’ll see where I’m going with this…

In both, the risks are high, lots of complexity, variables, high levels of unpredictability, opportunity for errors and failure are all present.

So whilst we’re not talking about losing lives, we are risking something. Maybe losing margin, turnover, market share, customer confidence, shareholder confidence, brand value.

Digging deeper, Gawande makes the distinction between two types of error:

Ignorance – mistakes we make because we don’t know enough.

Ineptitude – mistakes we make because we don’t use the skills and knowledge we have in the right way.

He concludes that most errors happen because of the latter – ineptitude.

This suggests that the person actually knows all they need to know, they have all the skills they need to know.

Moreover, this ineptitude exists in simple and complex tasks.

Let me explain, the problems occur when old habits, entrenched ways of working. When the ‘that’s how we’ve always done it’ mindsets overtake them. Or when the body is on auto pilot. Almost like conscious competence, but not quite as competent as one imagines.

That’s a perfect breeding ground for errors to take place. For example, the patient has complications or the sale derails. Simply because of lack of good habits, rather than lack of skills, knowledge or competence.

This is where the Sales Performance Improvement Check-list comes into it’s own.

It’s a check-list to use. A list to refer to when the sales process with a client is going off track. It’s literally a step by step guide in what to do to rescue it, bring it back on track, get it motoring in the right direction.

How simple is that?

Here’s an example:

In  his book Gawande uses examples of Dr’s and medical staff not washing their hands as frequently as they should. Or as frequently as they thought they did.

Pay attention to that last statement. It’s very important because how many times do we think we’ve done something when actually we haven’t? Especially those repetitive tasks, the small tasks that matter but don’t really register at the time?

Gawande references the Dr’s failing to ask a simple question of the patient, or washing hands.

It’s the same in a sales environment, it could be remembering to ask the budget question early on, or finding out if this is a price comparison exercise or a genuine need with the client.

These are seemingly inconsequential questions at the time that have a HUGE impact on the quality of the sale and the chances of profitable conversion.

On a real life basis – if you’ve ever kept a food diary – you know that your ‘good food days’ were more like ‘ok food days’ and your ‘ok food days’ really should be called ‘oh hell! food days’! The power of the check-list in another format!

So, there’s no two ways about it when you’re thinking about sales performance improvement, or even better, continuous sales performance improvement then – Habit Beats Knowledge every time.

Summary: Sales Performance Improvement 

Gawande concludes that having and rigorously using check-lists improves the chances of success and improves performance across the board.

My take away, is much bigger and more important than simply improving sales performance and here’s why.

Such a check-list based methodology actually changes habits. That is exciting because if you’re adopting this in your sales team, your business and your customer facing environment you’ve just created your baseline for continuous sales performance improvement.

That’s priceless.

One more thing:

If you’re putting this system in place, it dramatically changes the function of your sales manager…or Sales Performance Coach. Both functions now act as part auditor, part coach, part sales performance improvement specialist…which is how it should be…but more on that another day…

Happy Selling

Carol

carol@mortonkyle.com

07790021885

If you want regular sales and business development information – hit the link here. It’s totally free and great for helping you boost your sales efforts. Many subscribers use it to power and energise their sales meetings. Try it out, there’s an unsubscribe button if you don’t like it after a few weeks…