05 Mar 4 KPIs every sales rep needs to track
Sales is a numbers game, but with so many numbers out there, which ones should you focus on? Let’s find out.
In the old days, salespeople were judged on their revenue number. But in today’s more modern sales landscape, where you have roles such as SDR that contribute but don’t close deals, you have to take a more dynamic approach.
Every organisation places emphasis on different sets of KPIs. But there are several that all SDRs should focus on. Here are four of them.
1 — Sales Qualified Lead
A sales qualified lead (or SQL) is a prospect that has met the conditions necessary to move along the sales funnel, as defined by the sales team. If you’re an SDR, this is usually where you have done your work and it’s time to hand the prospect over to your AE.
The criteria that define an SQL vary from company to company, but in general, it’s a prospect that has:
- A budget
- Authority to buy
- A need for your product
- A timeline for purchase
If you’re an SDR, you will be conscious of how many SQLs you generate.
2 — Meeting conversion rate
If you’re an SDR and your job is to book meetings for your AE, you should be keeping track of your meeting conversion rate.
You can work this out as a percentage by taking the number of meetings you have booked, dividing it by the number of conversations, then multiplying it by 100.
This is a great number to monitor over periods of time. If your meeting conversion rate is 5% one week, but then in the next week it goes to 8%, you can think about what you were doing differently. If your meeting conversion rate drops, you know you need to take steps to improve it.
BONUS TIP! — You should also track the number of meetings that actually happen against the number that fall through. It will help you evaluate how well you qualify and how well you keep in touch with your prospects before the meeting.
3 — Minutes per dial
Smile and dial! You can calculate how many calls you need to make so you can generate enough SQLs to make your target, but do you know how many minutes you need to spend on the phone to achieve a conversion?
This can work both ways. Obviously, you need to spend time on the phone to be able to build rapport, qualify your prospect and move them on to the next stage of the sales process, but if you’re spending too long on the phone, your conversion rate will fall.
But in most cases, the longer you’re on the phone, the higher the quality of your conversations will be.
Again, this is something you can measure over time, then challenge yourself to get better.
4 — Response time
When it comes to making a sale to an inbound lead, to the victor go the spoils. The longer you leave it before you make that call and engage your lead, the more likely they are to talk to a competitor, or just forget about it altogether.
Look at how quickly you respond to incoming leads and try and challenge yourself to do it quicker. This may mean change at an organisational level. Perhaps you need new technology to help you close that gap. But why not be the spearhead of it in your team?
What do you think?
Those are four KPIs we like to focus on at Sales Confidence. What about you?
What numbers do you always have at your fingertips? What do you do to try and improve them?
Let the Sales Confidence community know with a comment.