Evaluation metrics are essential for every business but are indeed critical in sales. Every company has indeed set some criteria to evaluate the performance or turnout of a task. However, measuring sales can be vital as a sales leader can’t make decisions based on his intuitive skills.
To cater to this, organisations specify some metrics to evaluate the analytical performance of sales. They obsessively inspect everything about salespeople and sales strategies. Moreover, the sales evaluation fever has led companies to train their salesmen through professional training companies.
The intensity of evaluation gets more intense in business-centric countries of middle-east, particularly Dubai. Corporates that are competing with each other or are trying to establish their sales brand are tremendously turning towards sales training Dubai based courses. They don’t want to be laid back because of this!
How to measure sales performance?
Sales performance is measured through sales metrics. Sales metrics are a means of measuring the individual or collective efforts of an organisation. Moreover, they are also put up to give the higher a better picture of future growth along with identification of sales and strengths of sales leaders.
Just as there is a specific criterion for performance evaluation in any department; similarly, the sales department measures their turn-over through the noticeable sales metrics given below:
1. Sales key performance indicators (KPIs)
These sales KPI’s are used to measure the total revenue. Revenue may include the full costs generated by product or product line. Moreover, market penetration along with revenue percentages from existing and potential customers also comes under sales key performance indicators.
Following factors also comes in sales KPI:
- Every year’s growth
- Average lifetime value (LTV) of consumer
- Amount of deals lost to competition
2. Lead generation metrics
These metrics are also used to evaluate the performance of sales and includes the frequency of new opportunities added to the pipeline, along with average lead response time. In short, as the name suggests the factor measures the percentages of leads generated and dropped. Other factors include:
- Average lead response time
- Rate of points followed up within target time range (for example, 8 hours)
- Customer acquisition cost (CAC)
Read More: All You Need To Know About Upselling
3. Activity sales metrics
Activity sales metrics provide the day to day reports of the sales team as to what are they doing daily. These metrics are quite manageable. The best example that supports the later is that: imagine a salesperson who is not sending enough emails to receive the desired calls.
Hence, sales metrics analyze the number of calls and email that are sent and received.
Want to improve the sales performance of employees?
An effective sales leader is highly demanded and is considered as a valuable asset for any company. Moreover, organisations are also rooting for professionals who have expertise in sales and are eligible enough to meet all the above-listed sales metrics.
In light of the increasing demand of marketing leaders, you should enrol in top sales training programs to ensure your success as an effective sales leader!
Thus be ready to see a rapid increase in your business sales by providing specialised sales training to your employees, via top training companies near you!