In today’s digital marketing world, managing a B2B (Business – to Business) sales team can feel like a challenging job for all sales managers. Knowing with the fact that the ultimate job of a sales manager is responsible for their organizational goals.
IT IS ABSOLUTELY TRUE THAT TRACKING B2B SALES METRICS WOULD FIND YOU THE MOST TIME-CONSUMING ACTIVITY.
But if you are struggling with endless task and responsibilities you’re getting as a sales manager then you need to find out
What’s right for you? And What sales metrics will help you in achieving company goals?
Not only that, but you also have to consider the sales KPIs from your old, boring lists that you’ve listed on and apply it to your business, and what you get NO RESULT FOUND. We cannot deny this fundamental reality that every sales manager is facing nowadays.
Get to know about Sales Metrics and KPI, anyway?
Do you know how your sales team is performing? As a sales manager, you’re in one of the best positions to take advantage of your leadership, you probably know the tracking and measuring the importance of your sales team in order to win deals and achieve optimal results.
Before understanding Sales metrics and KPIs, note that these terms are totally different from each other. How? Let’s know one by one:
Sales Metrics – These are quantitative measures used by the sales team and the top management to track and evaluate the status of relevant sales activities within the organization. These measures will help you to manage your sales more effectively and cover the entire spectrum of every single sales process in detail.
KPIs – Which we called, Key Performance Indicators (KPI), are leading indicators that help your sales leaders to demonstrate how effectively your company is reaching its sales targets. These indicators also evaluate your sales team’s performance over a specific period of time and against set benchmarks.
As a sales manager, you should be able to optimize your sales process and ensure your team’s performance analysis every step all the way.
An evolving digital B2B landscape of successful corporate management requires a result-driven KPIs that actually work to prove the value of sales team efforts. Unfortunately, defining the relevant KPIs is a crucial task for your B2B sales team. Hence, we came up here to help you out in developing the highest performing sales team.
HERE WE OFFER THE MOST IMPORTANT B2B MARKETING METRICS TIPS. KEEP READING.
Tip #1: Measure what matters first
Start by reviewing your B2B sales metrics that you have discovered to focus on. Measure the average percentage of leads that end up becoming customers over a given time period. You can calculate the key performance indicator (KPI) by dividing the number of sales made in the specific time period by the number of leads generated in the same time period.
By calculating the average success ratio of your sales team won’t give you a true indication of how well you’re doing.
You need to ask yourself – what are your company goals? How can you identify your weakness and strengths? To get started, you need to get a crystal clear understanding of your organizational objectives and goals.
Whatever your most important KPIs would be, the first step is to measure the turning point where your sales team efforts will be more likely to convert. As you are the one who knows your company and sales team better, it’s your ultimate job to guide them about the company’s main goals.
Tip #2: Pick the customer-centered KPI targets
By keeping your top KPIs in mind, this sales metric is going to paint a clear picture of what is relevant for your sales team and how this relates back to the measure of a sales target you’ve set.
As a Sales Manager, measuring the efficiency of your sales that must be relevant and set realistic sales targets will help you to understand what sales prospects should be considered as “converted” in your company’s eyes.
Apart from that, taking the help of this metric you will know what KPIs you must take into consideration the successful productivity of your business. Breaking down targets and results will help you to pinpoint the incapabilities of your sales processes and overarching understanding of the ways to improve them.
Tip #3: Know Your New Leads Origin
Once you have a solid understanding of your most preferable KPIs that you need to consider, this marketing metric is going to help you in identifying the new leads you’re getting? From where they’re coming? At what percentage your new customers acquired are marketing generated?
Also, these metrics will help you in tracking the lead source. By viewing a clear picture of how many leads you’re getting, the lead source and tracking details can help you to establish which activities will drive customer behavior. More importantly, catering your sales KPIs to your customers will reassure your team that their efforts are paying off.
Tip# 4: Monitor your Monthly Metrics
If you’re curious to know whether your business sales team is giving its prospects, it’s far more important to measure the increase or decrease in sales revenue month – over – month. Looking closely at the key metrics in front of your team helps you to determine how good you are at keeping your customers and how often your clients end up becoming your customers. In the case where your metrics are dropping off, you’ll need to focus on improvements in your sales prospects areas.
For example, if you have 20 customers at the beginning of the month and 10 at the end of the month, then your average percentage of leads within the same month would be 5%.
To calculate monthly metrics: Customers at the month beginning – Customers at month-end / Customers at the month beginning
Tip #5: Determine your Lead Conversion Time/ Rate
Every company has its own description of what leads means to them, but once you know the original source of the lead, determine how many leads have interacted with your marketing efforts within a specific point of time.
According to a study by Harvard Business Review, an average typically respond to leads within
42 hours of an inquiry. Therefore, the sales leaders should use average lead response time for their teams.
A crucial point here comes when your sales process might be breaking down and why this is so. Pay close attention to the understanding of the cause of both positive and negative sales prospects.
For example: if your sales team made 15 sales in the first quarter, but generated about 100 leads – your Lead Conversion Rate would be 15%.
To calculate Lead Conversion rate: Number of sales made within time period/ Number of leads generated within the same time period
Tip #6: Overall Conversion Rate
All successful business sales teams need to generate revenue for their company. A Sales Manager should keep a close eye on controlling their conversion rates. This will give you both marketing and sales insights to the quality of their leads. The implementation of controlling conversion rates can be beneficial for your overall sales targets and results.
It is relatively simple to calculate your conversion rate, you just need to divide the total number of new leads in a specific time by the average number of leads.
For example, if you get approximately 100 leads in a month, and on average, only 10 of them become your customers, then your conversion rate would be 10%.
To calculate your lead conversion time: (all sales and marketing costs/ Number of new customers acquired) x 100
Knowing your conversion rate in a specific period of time will help you to map the journey of your sales leads. However, a low conversion rate does not automatically mean that your leads are irrelevant and not responsive. Some leads might take longer to convert. Encourage your sales team to watch their conversion rates to find more leads efficiently for rewarding results.
Tip#7: Opportunity Win Rate
The opportunity win rate measures the success of your sales team and the profit of your company earned during the given period of time. Knowing your win rate, these sales metrics look at the average sales profit generated across all products, services, and sales channels.
By understanding and tracking the win opportunities you’ll identify whether a particular sales rep needs any additional in-depth training and corrective actions.
For example: If your winning deals are 10 leads out of 50 leads then your opportunity win rate will be 20%.
To calculate Opportunity Win Rate: Total number of deals win / Total number of deals created
Tip #8: Effort
Every sales manager must ask this question to himself, “ Am I doing everything that I’ve set up for successful sales outcomes? ” This last but not the least sales metrics aren’t just a number that you track over a month, but a description of all the efforts made by your sales team.
But remember, measuring these sales KPI, the sales managers are likely to get an insight of market changes, sales strategies, or market training.
You made it to the end!
Well, we have to say sales metrics and KPIs are not like one size fits all criteria. They can be different, depending on your industry, niche, and every job position.
While the KPIs for your successful B2B sales metrics we’ve suggested here will help you to monitor and achieve your monthly targets. Although there are endless sales metrics, but with a team that is specific, consistent, and action-oriented working towards the attainment of the company’s objectives, results are assured.
In order to get the best possible results and finding the best sales metrics and KPIs for your business, we have compiled a list of some of the important B2B Sales Metrics KPIs that can get easily started.