Tips and Metrics for Evaluating Sales Performance

Sales are one of the biggest revenue generators for any company. No matter you sell products or services, your salespeople are responsible for getting in the majority of the business as well as the money. Evaluating sales performance is thus an important aspect for an organization. It indicates how your sales team is performing and whether they are doing the best they can. Before knowing how you can evaluate the performance of your sales team, here are some important metrics that you should evaluate.

Metrics to Evaluate Sales Performance

Sales Productivity

Find out how much time your sales reps actually spend on selling. It is found in research that reps that spend more time performing selling activities are more satisfied with their job and can achieve more as well.

Lead Response Time

In the sales business, it is important to reach a potential client as soon as they show an interest. If your sales reps are taking too much time to follow up on leads, their performance will automatically be lower than the rest of the team.

Opportunity Win Rate

Opportunity win rate is how many opportunities did a sales rep converted into closed-won deals. If the win rate of a sales rep is declining, you need to ask why is it happening and in which stage of the sales funnel is he losing a client.

Average Deal Size

The average deal size provides a good measurement of how you should adjust your sales goals. If the deals are coming in below the average size, the reps might be opting for easier and smaller wins or even discounting normal deals to make a sale.

Tips for Evaluating Sales Performance

Determine KPIs

Key performance indicators or KPIs allow you to analyze the performance of your sales reps throughout the sales channel and is an important part of the sales process. Adequate KPIs can help you determine the right tools, coaching, and training required for improving a sales rep. Here are a couple of pointers while Determining KPIs:

  • Less is More – Don’t try to track everything your sales rep do. Keep the number small and concise to make the final report easier to understand.
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  • Leading indicators over lagging indicators – Focus on processes that are going on and will help your sales rep in growing rather than only focusing on the end results.

Establish Clear Goals and Expectations

Sit and discuss with sales reps their short and long-term goals while they are in the organization. This goal setting will not only help you in staying on top of the reps but will also help them in achieving their goals. Just make sure to set realistic goals that are achievable so that the goals can be easily broken down into specific activities and responsibilities.

You can discuss goals with current team members in a one-to-one meeting while you can define the goals for newcomers right from the start during the onboarding process.

Track Leading Indicators As Well

A lot of managers make the mistake of evaluating sales professionals on their final result and not on other leading indicators. This doesn’t help them in improving their performance. Try tracking all the sales activities that your rep performs in order to achieve their goals and see which process has room for improvement. You can set up systems all along the sales cycle to measure and evaluate the sales team’s performance. Some of the indicators that can be tracked are:

  • Number of demos given
  • Number of appointments set
  • Number of leads converted to opportunities

Conduct Ride Alongs

You can join your sales reps on the field to get a more in-depth look at how they are performing. In today’s world, it doesn’t mean that you need to go with the sales rep everywhere. You can join them in virtual calls and meetings as well since a lot of sales are happening online. Such joint sales calls allow you to look at a sales reps working procedure and give them firsthand coaching about things they are doing wrong, where they should improve and more.

Optimize the Evaluation and Feedback Process

The feedback you give to your sales rep can be very important. It can motivate them to do better or discourage them to leave the company. Try giving constructive feedback rather than criticism for their job and alleviate any anxiety or defensiveness they might have. It is important to note that you want them to adopt a few changes and not change their complete style.

Determine Strength and Gap Areas of your Sales Reps

An assessment tool can help you uncover the motivators, behaviours, and communication styles of your salespeople. It can also help you in analyzing their knowledge of B2B roles and selling practices used by top performers in your organization. These tools help you in not only evaluating a sales rep individually but also giving a “bird’s eye view” of how your entire team is doing. As a sales manager, one of the most important tasks you’ll perform is evaluating the sales performance of your sales reps. They have to deal with different customers every day and a detailed evaluation can not only help them in improving but can also help in closing more deals as well.

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Author: Alinamass