How to improve your sales using data
Most businesses employ sales people to help generate revenue. Sometimes the sales team comprises most of the business (car dealerships) and sometimes they are just a small part of a larger puzzle (food production). Whatever role sales plays in your business, measuring sales effectiveness is crucial, but always a challenge.
The easiest way to measure the effectiveness of your salespeople is to track the total amount of new revenue they bring in every month or quarter. Easy, right? Even this simple measure can be difficult to calculate! Do you measure booked revenue (when the contract is signed), or only collected revenue (when the money is in your bank)? What do you do if a customer fails to pay their bills? These issues become important factors in building both your sales goals and your sales plans to motivate your team to sell as much as possible.
Even if you master measuring sales revenue, it rarely gives you enough information to truly optimize your sales organization. Luckily there are other sales metrics, beyond revenue, that can help greatly in measuring, evaluating and planning for your sales team. We’ll cover them this week and hopefully help you make your sales organization a data driven engine.
Specifically we will cover:
Tomorrow we’ll get started by covering Sales Efficiency, which will tell you if your sales team is worth what you pay for them.
Quote of the Day: “To me, job titles don’t matter. Everyone is in sales. It’s the only way we stay in business.” – Harvey Mackay