Hardworking, efficient and intellectual employees! Do these characteristics are enough to hire an employee into your company? Well, to be fully sufficient for your business, you need proper tools and equipment which will help you in providing details of employees efficiency at maximum accuracy.
To overcome your failure and bad points which you think is affecting your businesses you need to handle your sales team in a far better way. It is quite essential these days to keep an intact of employees activities and their performance chart but if your goals are being met, your performance is going what you want it to be, then surely you think that you do not need a measuring device. But, there might be a problem in your calculation or to keep it going the same way, you need a measuring device that will let you know that things are going fine, pinpoint the problems and analyze it to take the action.
To get a full update of employee’s whereabout and to know how productive he is for the company, calculation of revenue-per-rep is important. As it is one of the important sales performance metrics which measures the sales reps update. And if you know your employee’s behavior and his capacity, then probably you might think that you do not need any physical tools to get an update about employee’s activities.
When you have to prepare employee’s performance report, you check on various places on how to get it right, but very few are there who focus it from the start. Yes, an employee’s performance is tracked from the time he is hired. It is absolutely legal and right to track employee’s activity, 7 out of 10 employees do not mind being tracked by his employer. So, as an entrepreneur think big and capture employee’s real-time location.
Julie Rieken, the CEO of evaluation software company Trakstar, and Applied Training Systems, Inc says, “The ideal outcome for a performance appraisal is for managers and employees to have meaningful, reflective conversations together. Gauging salesforce performance is a chance to know employees accomplishment and celebrate the progress”.
If you really want to gauge your sales force performance, then you must check out these 5 sales metrics below that will provide you results:
1.Time spent while selling
When a sales representative is in a process of talking to his lead then a manager’s responsibility is to look after that how much time the representative is taking while talking to his one customer. From the follow-up time to the time he sells the product, everything is taken into consideration to calculate sales force performance.
Keeping a track on his activity will provide you right results through which you could mark up as his level of performance. For example, if sales rep’s customer asks him about some information which he does not know he might struggle with some content issues for which he needs guidance and spend quite some hours on the internet looking for the information. This might add to his time in selling and will be an overall deduction of time to sell. This is the time for you to think of measuring sales reps performance with a right business tool.
2. Calculate the cost
When your employee works for you for full day from 9 to 5, it is your legal right to know how much money you spend on them and does they bring that amount of productivity too. You just need to measure their productivity and include everything from your employee’s expenses including their salaries, incentives, and related benefits. Then, total the revenue your sales force generates and divide it by the cost related to their effort. This will let you know what your employees perform in comparison to their earning.
This is again a very truthful method for any employer to know that his employee performance is up to the mark or not and help you determine ways to reduce and control cost.
3. Change in win rate
Keeping track of win rate gives you insight into the ability to close the deal. Closing a deal brings chances of sales reps moving higher at win rates. There might be some sales reps who might have a great network but still, they fail when it comes to closing.
This involves an employer to keep a close eye on those sales reps by tracking their activity and know which employee is at low opportunity rates. When you access their activity you might help them where they are going wrong and provide them training or if they still not improve, you can transfer them to other sales department where their strengths are highlighted.
4. Average deal size
There are some sales reps who prefer to close smaller deals as they are easier to close. The average size of deals closed are mainly not worth pursuing by a sales reps, there might be sales reps which are not putting enough efforts on high deals to close it as it may be difficult to convince the client of it. But, as a sales manager, you must ensure that your sales force are spending their time on those leads as wisely as possible.
Take some time to analyze that why sales agents are producing leads that are smaller in size. Coordinate with marketing and ensure that the bigger size deals are marketed well and boost sales performance.
5. Sales funnel leakage
Sales funnel leakage is a crucial metrics to gauge as there might be holes in your sales funnel which exist. So, it is important that you fill up those leakages and with a right business tool, you can determine what these holes are, and what causes leakages in them.
There are basically two sales metrics that lead to leakage: one is lead response time, and second is the rate of follow up of contact. These will definitely provide you an idea on how to help stop leaking sales funnel. If you will focus on these metrics and make sure when you receive the lead, you immediately respond to them without spending too much time elsewhere. This will make you utilize the lead and will close the sale much faster.
The main focus is just to make your customer feel satisfied as the happy customer will bring you money. If you improve your sales employees performance by monitoring their every single activity, your judgment will be easy.