As a business owner, you always hope that the company and its revenue are continuously rising. At the same time, it is also vital that you can measure your growth. Being able to measure an aggressive growth strategy is crucial as it helps you keep track of what is going on and tweak the sales process wherever needed.
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Here are four key metrics that you need to track
Metric 1: Amount of deals added to the sales pipeline
You do not want to scramble around for your next client at the last minute once you have finished working with the previous one. You need to ensure that your prospects are regularly topped up and you are ready with the next job before you are done with the previous one. There are a few sales strategies that you can use to ensure that your sales pipeline is never empty. With these strategies’ help, you can ensure that the amount of revenue you gain is constant, and you never have to worry about where your next paycheck will be coming from.
Metric 2: The average size of the deal
As a sales executive, the main aim should be to sell value rather than just the cost. By selling value to your customers, you will not only convince your customer that your product or service is perfect for them, and added little benefit of this kind of strategy is that you will even get a higher price for the service. Selling values means that instead of just talking about your product and what it does, you talk about what the product does for the customer.
This way your customer knows precisely why they need your services and see that you have put in that added effort to personalize the presentation according to your company’s needs. Not only do you sell more when you choose to value sell, but you are also able to sell additional products to the same customer.
Just by sticking to the rules of value selling, you will always maximize your average sales.
Metric 3: The average percentage of sales that make it through your sales pipeline successfully
The conversion is one of the most thrilling parts of your job profile. You need to look at the total number of deals that have come through your sales pipeline and check how many of those were successful. The lead to customer ratio should be one of the most important things you need to keep track of. You need to see what works for your business and what made a deal successful.
At the same time, you also have to look at the factors that cause you to lose out on a customer. Taking steps to fix any issues you come across in your sales process can increase your sales and revenue to a larger extent. Investing in the best CRM is a good idea as it keeps track of every interaction you have had with potential customers, and it will also take care of the analytical part of the business. All you must do is take the time to implement the change required to improve your business.
Metric 4: Sale Velocity
Sales Velocity refers to the average amount of time that a deal is stuck in the pipeline before it is converted into customers. This is something that you want to keep to the minimum, as the more time the target customer stays in the pipeline, the more chances you will lose the client. Also, the less time one deal takes to be converted, the more deals you will be able to do at the end of the day. As the main aim is always to increase profit, the larger the number of sales, the more profits you will make.
As an organization, you will need to get a bit creative to reduce your sales timeline. The time between the first contact and the sale’s closing is a significant time for the customers and the business. If a customer is stuck in the pipeline for longer, you are taking a risk as they will also be talking to a few other companies that give similar services and chances are they are doing their best to convince the customer they are the one to choose.
These four metrics are the most important as making a few tweaks here and there can help you increase your revenues. A sales CRM software is the best way to keep track of all essential aspects of your business. It allows you to keep track of the entire sales journey that your customer goes through and at the same time also keep track of what your agents and executives are doing. All of this put together can give you an in-detail insight into the business’s working and gives you an idea of what you need to change.