How do you track the productivity of your employees
Sales Productivity: How It Is Measured.
Measuring sales productivity has always played an important role for sales managers. In an era when organizations are increasingly data-driven, it is even more important for sales teams to have effective procedures in place to monitor productivity.
Fortunately, you can easily implement measures that show where your employees are wasting time and where it is worth investing more energy to get the most out of every minute of the sales process.
Let's share with you five ways to measure sales productivity recommended by sales professionals - individuals with years of sales experience, including writers, strategists, CEOs, coaches, and company founders.
Measure the number and quality of customer interactions
Check the activity reports in your CRM
Even if many salespeople are in contact with many potential customers (e.g. through a high number of calls), the question arises whether your salespeople have enough relevant conversations to lead to a sale.
According to Wendy Weiss, chairwoman of ColdCallingResults.com,"The key figures for telephone acquisition are the following: calls, discussions (with qualified prospects) and appointments. Many sales professionals track the number of their calls, some track their calls and meetings, but very few keep track of the number of conversations they have with qualified prospects. Without that middle number, it is impossible to know how good you really are ”.
In addition, the quality of every conversation with potential customers should also be monitored. Numbers are meaningless if you don't build relationships and increase sales. “For me, quality is my most important productivity tool,” says author, speaker and strategist Jill Konrath. She adds: „I want to achieve maximum impact with every customer interaction so that my prospect decides on the next step. If that's not the case, I need to rethink my planning, knowledge, strategy, approach, messaging, and more. "
Productivity measures: Track calls, emails, and meeting metrics in your CRM. Sell generates reports based on these activities. For example, you can see the number of calls, call duration, call length over the course of the day and call results. This is important to know if the calls are high quality and effective. If you're a sales manager, you can sort this information by sales rep. Some sales reps may have better call results than others. Match these employees with those who are less successful.
Pay attention to the progress of the sales pipeline
Review opportunities at every stage of the sales pipeline.
If your reps have just a general idea of the opportunities that are in the pipeline, it isn't a good sign of productivity. The number of opportunities should be carefully monitored as each stage indicates what sales you can expect at the end of the quarter. By tracking the progress of the sales stages, it also becomes clear which skills employees need to improve.
Lori Richardson, Founder and CEO of Score More Sales, explains:“One of the productivity metrics that every sales rep should look out for is the number of opportunities, from acquisition to qualified leads to closing. These are actually three metrics, but I want to see what people started with (to know if the right decisions are being made during acquisition), what they rate as 'qualified' in the pipeline (so I know whether they are investing their time in the right places) and how many of the qualified prospects have closed so I know if they are working on the right opportunities or if there are other issues such as: B. lack of urgency or poor messaging. "
This productivity tip is aimed at creating a high quality sales pipeline. It may sound obvious, but your reps need to generate enough high-quality leads early on to increase their chances of closing more deals. “If you don't keep in touch with new people, I don't care how good you are at initiating a sale, overcoming objections, asking questions, or anything else,” says sales, marketing and business coach Butch Bellah. “You won't have anyone to talk to. "
Productivity measures: Review the number of opportunities at each stage of the sales pipeline to identify bottlenecks and make improvements if necessary. Make sure the sales reps are generating enough leads for the pipeline. Also, check that these leads match buyer personas. For example, if certain employees have a large number of prospects but cannot move them to the qualified phase, you may need to revise your customer qualification requirements. Reasons for business loss, average lead response time, close rate, and customer acquisition costs are four pipeline metrics to keep an eye on.
Evaluate whether the sales forecast is being met
Sells CRM “Projected Sales” report
Sales forecasts don't just help estimate the final numbers - they provide a foundation for employees to see if they're on track to meet their goals and if they need to improve their skills.
As Jeff Sheehan, co-author of “Hired! Paths to Employment in the Social Media Era ”explains:“ No matter how you twist and turn it, the most important metric for sales is the amount of sales achieved compared to forecast sales . Is the sales rep fulfilling his or her plan? If so, what percentage of the plan? Any discrepancies must be thoroughly investigated and corrective action taken to ensure the person gets back on track in the coming month, quarter, or other reporting period. "
Use your sales projections as a starting point to determine if you or your reps are on track to meet their quota. “Think about how many sales are required, which candidates are most likely to make a purchase and how much acquisition you need to do to keep the pipeline always full,” advises Elinor Stutz, CEO of Smooth Sale. “Find out how many contacts are required and dedicate yourself fully to the task for the ultimate in sales. "
Productivity measures: Review your sales forecast reports. What is your forecast sales at the end of the quarter? How many deals will it take you to achieve this goal? For example, you might determine that by the end of the quarter you had a close rate of 25 deals and that you need to close at least 50% of the deals in your pipeline to hit that number. Your CRM should provide information on whether these goals are being met. If not, break the numbers down to understand what you or your reps need to do to meet the quota well before the quarter ends.
Keep track of your thank you letters
Productivity isn't just about numbers. It's also about how employees maintain relationships with prospects. A handwritten message is a way to nurture customer relationships (and a great way to stand out from other employees who only send emails). Write a handwritten message to show your appreciation to a prospect or client.
Craig Wortmann, Founder and CEO of Sales Engine says: „I keep track of how many thank you messages I send out because that is a lagging indicator of productivity for me. If I generate leads and drive those leads forward in the sales process, the chances are good that I will have someone to thank. And as I've said a million times, a 'thank you' is only a real thank you if you do it right. An email is not enough. That's why I use tags to measure how many thank you messages I've written and sent in a given month. "
Productivity measures: Record the number of thank you messages you write each month. This can be a thank you card after a sales pitch, a deal or a customer recommendation. Organize the handwritten messages by sales phase or customer type. If you are a sales manager, check how many letters your employees send and how many deals / business relationships result from them.
Prioritize your sales tasks
Prioritize your sales tasks using your CRM.
Jumping from one sales activity to the next can be deceptive - it may seem productive, but it can also be that your salespeople are just struggling without actually developing high quality prospects. Clear priorities can help here.
“When it comes to my own productivity, I focus on results,” says Jim Keenan, founder of A Sales Guy Consulting, “I find measuring time and productivity counterproductive. Measuring individual productivity distracts me from what I'm supposed to be doing. To be as productive as possible, I prioritize my tasks and initiatives so that I only work on the most important things. "
Productivity measures: Use your CRM to organize sales activities, conversations and calendars. With Sell, for example, you can enter tasks and sort them by various filters such as due date to know which tasks to focus on. If you're a sales manager, you can track your sales reps by owner. If you want to know which customer calls to prioritize, switch to the Communication Center. In the case of e-mails, for example, you can filter the results by “hot deals”.
Effective measurement of sales productivity
Once you have solid productivity processes in place, use the steps above to understand what activities to focus on and to give your sales reps clear goals. As you improve your sales productivity measurement operations and operations, you increase the chance of higher sales.
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