Last week’s blog touched on three KPIs every sales leader should assess. Why? Because a sales leader must ensure their team’s efforts are producing the intended results.
This week, let’s discuss three more essential KPIs.
KPI #4: Conversion Rates
A sales rep’s conversion rate is critical for obvious reasons: if you don’t convert leads into customers, you don’t make sales.
The following simple formula can be used to calculate conversion rate:
Conversion Rate (%) = (# of total closed deals / # of total leads generated) x 100
To gain a deeper understanding of your organization’s conversion rate, track a buyer through their entire journey to ascertain how quickly they move from one stage to the next. Tracking on this granular level will allow you to pinpoint areas for improvement.
KPI #5: New Rep Onboarding
New reps should be onboarded efficiently and effectively so an organization avoids, as much as possible, additional customer acquisition costs (CAC). CAC is simply the total charges accumulated through the process of closing a deal or gaining a customer. As companies scale, CAC tends to rise, making this KPI even more important.
Similar to last week’s training and coaching KPI, this KPI should measure the CAC of a new rep against the time to complete training, time to productivity, or time to first close. Whichever metrics are assessed, they should be compared to benchmarked values to determine whether the onboarding process needs to be improved.
KPI #6: Time Spent Creating Content
Content is a powerful tool for sales reps but it takes time and money to create content that resonates with every buyer. Personalization does lead to increased sales and shorter sales cycles, but it’s not cost- or time-effective to personalize every piece of content.
To streamline content creation, track the time it takes to create a new piece of content or update an existing piece of content. Then, assign a dollar figure to each piece of content according to the time it took to produce. Remember to factor in any external expenses such as third-party analysts, agencies or freelancers.
Total the cost of each piece and determine what percentage of your CAC the total cost makes up. There is no right or wrong percentage, but it is important to monitor this percentage. If it increases but sales do not increase, you may have to cut back the number of hours spent on content creation.
We hope you enjoyed Part 2 of How to Know If Your Team is Producing the Intended Results. Be sure to tune in next week for Part 3!
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