Editor’s Note: This is our fourth installment in our “Building a Revenue Machine” blog series. You can read our first, second and third blog posts to get the full story on how to transform your sales team into a revenue generating machine.
Lack of visibility into the sales process, pipeline and the ability to hit your number is a constant source of anxiety for Sales Leaders. Even with Salesforce dashboards, countless forecasting tools, Sales Leaders are still relegating to an excel spreadsheet to track deals as the quarter end approaches.
You may already be tracking a handful of metrics, but we’ve condensed that list to just four core metrics that you should track to get a clear view into your team’s performance.
Pipeline coverage gives you a clear view of what’s going to close and what’s upcoming for the quarter. Without this metric, there would be no visibility into where reps are in the process and/or if they are consistent in following through in the sales process to meet their number.
For many Sales Leaders, Pipeline coverage is further broken down into four subsidiaries:
- Quantity: The number of opportunities in the pipeline
- Velocity: The speed at which an opportunity converts at each stage
- Quality: Qualified opportunities where value matches pain
- Close Rate: The percentage of active opportunities in period that convert to closed
Tracking this metric gives you insights on if your reps are closing deals, but more importantly it gives you intel if reps are being consistent in messaging and accurately conveying your company’s value proposition to customers.
In the market, leading companies hover around a 20% close rate with a 5x pipeline that ensure their projected close rate.
Tracking deal size tells you how many opportunities you need to meet your revenue goals. There is a finite number of opportunities a rep can handle in a given period, knowing deal size will help with planning rep capacity.
By looking through your company’s closed deals data, you can find the average deal size which will help you target your selling approach, messaging and content that will increase the overall deal size over time.
Consistency across goal
According to Forbes Insights, 74% of the highest-performing Salespeople focus on “consistency of execution” across their sales process. This consistency of execution directly relates to the number of reps hitting their quota quarter after quarter, which increase your company’s Average Selling Price, close rate and makes the sales process more repeatable.
Why You Need a Sales Success Platform
The time for cobbling together eight different point solutions is over. Our goal here is to help Sales Leaders transform their team into a revenue generating machine. Through our research, we’ve developed ToutApp’s Sales Success Platform to be a consolidated platform that addresses each of these key challenges.
For a deeper dive into a Sales Leader’s challenges, download our latest eBook the Sales Leader’s Guide to Building a Revenue Generating Machine.