Key Performance Indicators

KPIs the best sales team use

The best sales team does not only make-up of the best sales agents. It also needs good teamwork, good leadership management and monitoring. As for monitoring, key performance indicators or KPIs are the most common especially in sales companies and the BPO industry.

According to F. John Reh, KPIs are a set of indicators that help managers and employees guage the effectiveness of various functions and processes important to achieving the goals of a company. These are linked to the company’s strategic goals wherein managers assess whether they are on or off track when it comes to reaching these goals.

The following are the 5 most important KPIs to consider in order to become the best sales team. These indicators will help the sales team measure and understand their own performance over time and make appropriate changes that would address their specific needs.

Rate of Contact or Reach Rate

Reach rate is specifically an important KPI for outbound sales activities. It is the percentage of outbound activities that result in a meaningful conversation with a decision maker. Reaching a decision maker is a big hit for all outbound call. Yet, a bigger hit would be to persuade the decision maker to even consider buying your product or service.

According to Pete Gracey, an expert from AG Saleswork, out of every 1000 calls, every sales rep should be reaching 362 prospects and adding 32 opportunities in the pipeline. This becomes the basic standard. By increasing your reach rate, you are more likely to land more productive calls for your company.

Generally, 90% of every telemarketer’s efforts are wasted on just trying to reach decision makers in every call so reaching 15-30 percent reach rate is already promising.

Lead Response Time

A Harvard Business School study concluded that reps who contacted leads within 1 hour of receiving an online query were nearly seven times as likely to have a meaningful conversation compared to those that tried contacting the customer an hour later. So, the best sales team would need speed to close more deals that other sales teams.

As for businesses around the world, the common response time is 42 hours. Including lead response time allows the business to properly address the queries of prospects and in the long-run increase sales.

Rate of Follow-up Contact

Following-up is one of the most essential tasks of every telemarketer yet mostly overlooked. Statistics shows that a representative needs to call a client 5 or more times in order to close a deal.

With this, including the rate of follow-up contact in your metrics can make you understand more where the team went wrong in terms of following-up of the clients.

Robert Clay from Marketing Donut claims that only 2% of sales occur during the first contact. If a lead says “no“ the first, second, third, and fourth time they get contacted, your rep has to be persistent and keep on following up, since according to Mr. Clay 80% of prospects say “no” four times before saying “yes.” Although this is the case, you would still want to strategically schedule your follow-ups so that you won’t come off too annoying for the clients.

Marketing Collateral Usage

This is not one of your typical sales KPIs but in the interest of optimizing budgets and unifying the sales and marketing departments it is something worth measuring. Budget is always a vital factor whatever the size of the company.

Marketing departments allocate sizable resources to create marketing collateral such as guides, white papers, case studies etc. In a usual scenarios, these resources are used once or twice and then thrown into the library or the storage room.

Managers should start to consider these white papers, case studies and infographics as valuable content that can be shared with prospects. It cannot just save marketing resources but also open a brand new opportunity for follow-up. You will never know maybe a client interests ignites again and starts a conversation! The best sales team should also be resourceful.

Opportunity-to-win Ratio

Arguably this is one of the most important KPIs a sales manager needs to measure. The basic question asked to measure this indicator is: “How many leads eventually become customers?”

Aside from measuring the overall performance of your sales team this KPI can be very useful in determining the strengths and weaknesses of individual reps.  Some reps excel at knocking on doors and creating new business development opportunities yet they lack closing skills. On the other hand some members of your team might be expert closers.

Finding out your team member’s strengths and weaknesses will help you allocate the necessary resources and ultimately increase close rates.

This article was taken from an original articles written by Patrick Sutherland. Read original article here.


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