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5 Metrics that Will Make You a More Effective Sales Leader

5 Metrics that Will Make You a More Effective Sales Leader

A good salesperson understands the value of data.

A valuable sales leader must understand which data is good.

In this day and age, we collect immeasurable amounts of data on our leads, on our strategies, and on our sales teams. An effective leader is able to cut through the noise and focus his or her team on the metrics that generate success, profits, and commissions.

Cut to the chase with valuable metrics that improve efficiency, transparency, and the bottom line.

5 Metrics that Will Make You a More Effective Sales Manager

  1. Open Opportunities

Your team’s total opportunities offers insight into the total inflow to your sales pipeline. Monitoring this metric will help you manage how many opportunities each rep has to work on, and helps your team track its progress towards its sales quota.

In addition, your open opportunities will help your leadership team understand your momentum towards your forecasted revenue and recognize trends in your sales cycle that impact your overall bottom line.

  1. Deal size

Understanding your average deal size will make it easy for you to spot opportunities that fall outside the norm and flag them as priority, Opportunities in your pipeline that are significantly larger (3x or greater) than your average deal size should be flagged because, typically, larger-than-average deals tend have smaller win rates and longer sales cycles.

In the long run, average deal size over time will help you track when, and by what margin, you move up-market and begin winning bigger deals. If your average deal size increases significantly from your historical average, your pipeline may be changing. It is time to dig into your lead generation efforts and figure out why you’re attracting larger deals.

  1. Sales by lead source

Metrics relate to lead source will help your sales reps and marketing team hone in on the best place to target your opportunities. It will help you funnel your advertising spend into the most efficient and profitable places to capture leads.

Monitoring your lead sources will help you craft more productive sales strategies and help your team focus their efforts towards the deals that they are most likely to win.

  1. New vs. Returning customers

Returning customers are a huge asset to any organization. A healthy organization has a healthy mix of new leads and returning deals. Understanding the relationship between new and returning customers will help you understand your customer lifetime value and dramatically improve sales and profits.

It’s hard to track which sales and marketing tactics are the most valuable for your CLV. Setting goals related to returning customers can help to encourage your team to re-engage with its deals and increase profit as a whole.

  1. Win rate

Your win rate offers insight into your team’s ability to close deals. It also gives your reps a standard for their own personal win/loss ratios.Keeping track of opportunity win rate gives you some insight into the ability of your reps to close a deal. Closing ability is quite a large part of sales performance. Some of your reps might be great at networking and working a deal through the pipeline only to consistently fail when it comes to closing.Monitoring this metric will help you determine sales reps’ strengths, and place them along the pipeline accordingly. As a leader, you can strategically place your your winners at the end and your networkers as SDRs. Your win rate is an easy way to optimize the talent of your team.

June 24, 2016

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