Sales Productivity Metrics come in to play once sales productivity tactics have been applied. Firms need to accept that only the application of sales productivity won’t change the fortunes of the firm. The right strategies need to be implemented in order to ensure success. However, if the strategies prove to be a failure, this does not close all the doors for the firm. In fact, this draws a line between the strategies which are going to succeed, and the ones that are going to fail.
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Sales Productivity Metrics has a great impact on the efficiency of a firm
So what are those metrics which are going to decide if the firm is on track or derailing? We are going to let you know.
The following are the key sales productivity metrics.
Time taken in converting a suspect to a prospect
The inside sales rep has to make a number of efforts to reach out to a qualified lead. The sales manager should keep an eye on the average time it takes for a sales rep to have the first meaningful conversation with the lead. This is of high importance as it is directly proportionate to the time taken to close the deal. The more time it takes to have the first conversation with the lead, the more time it will take to close the deal.
Percentage of Call Connects
It is the percentage of the number of times a sales rep actually gets connected to a person and speaks to him. If the sales rep is scoring a low percentage, this means that the lead list quality is poor or that the sales rep is not calling the right people at the right time. Another reason could be that he is not utilizing up to date technology properly. Whatever the reasons are, the percentage call connects gives the sales manager an idea whether the sales reps are on track or not.
Customer Acquisition Cost
Forbes suggests that another valuable metric a firm can use is identifying how much it costs to attract a customer. If the money spent to acquire the customer keeps increasing, then the sales manager has to come up with new strategies. The money spent on marketing should have a positive impact on sales productivity.
For firms that focus on sales productivity, the results might be sluggish in the early stage, but in the long run they can reap rich rewards. How will they find out whether they are going to reap rich rewards based on their current sales productivity strategy? The answer is sales productivity metrics. Sales productivity metrics determine how efficient and effective the sales productivity strategy is as a whole.