As sales begin and you start seeing some consistent revenue coming in, there are certain metrics that are essential to begin the process of scaling. Although it’s well understood that having a data-centered sales process is the gold-standard for any scalable sales team, it can be difficult to know which are the most important to start with.
Here are 5 metrics the that you should consider establishing FIRST to ensure you don’t find yourself in cluelessly treading revenue water a few months down the line. Some of these can be tricky to calculate with only basic CRM reporting but a free resource to calculate them can be found here.
Understand where your customers are coming from. This information helps you prioritize your deals and double-down on the most profitable sources. Further, you can see if you need to branch out your number of lead sources to minimize risk.
One of your most fundamental metrics to track is win/loss rate. But what good does that do you if you can’t identify where things are going wrong? Everyone agrees they need to close more business, so take a step beyond win/loss rate right from the start and see where your leads are getting stuck.
Stalled deals are tricky as they are more sneaky than straight losses. By tracking the number of stalled deals (no movement in X amount of time), you are able to identify when to make the call to circle back on deals and identify the most common causes for stalled deals.
Not only do you need to see what stage every opportunity is in, but you need to be able to track the changes that are constantly happening within those stages. Changes such as deal amount reduction can quick blindside you and prevent proper planning.
This is an important internal benchmarking metric for understanding the health of open opportunities. Compare the movement of each deal at each stage against the benchmark and you will have a better understanding around if deals moving through the funnel as expected.
Using the metrics stated here, you’ll ensure revenue continues to grow and your sales process continues to improve as you begin to increase the size of your team and invest more in the pipeline. As an important bonus, you’ll have a solid analytical foundation in place to grow the rest of your data-centered sales process down the road. Feel free to check out the other resources we have available for growing sales teams at our website.
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