A Comprehensive Guide to Improving Your Teams’ Sales Productivity
When asked about the standard measure of sales rep productivity, Oleg Rogynskyy, CEO of People.ai, said, “I don’t think there’s a single ‘standard’ measure of productivity that works. How you measure productivity changes from company to company.”
The productivity of your sales team isn’t a one-size-fits-all process, but it is a process. Consistent sales and revenue growth comes from a scalable, replicable process that yields results each time, and once you have that, your business can grow with new team members that can be trained on the winning formula.
Unfortunately, this can’t occur until you’re fully aware of what works for your business, and more importantly, what doesn’t. While you may know who’s a consistent performer time and time again, that knowledge can’t be passed on to the rest of the team until you understand why they perform well.
Improving sales productivity comes from understanding how and why to monitor your sales metrics. What you can gain from this information helps you make proactive decisions to elevate your business.
A sales metric is a data point that represents individual, team, or company-wide performance. Sales teams use metrics to measure progress toward goals, adjust compensation, award bonuses or incentives, identify weaknesses and prepare for future growth or market changes.
Ideally, the productivity distribution between your high-, medium- and low-performing sales representatives should be balanced, and the team as a whole should see consistent success.
A sales target, also known as a quota, is the number of sales a representative or sales leader aims to make in a specified period of time. This is usually measured in revenue or volume.
Sales key performance indicators (KPIs) to measure company-wide performance are:
- Total revenue
- Product or product line revenue
- Market penetration
- Percentage of revenue from new customers
- Percentage of revenue from existing customers
- Year-over-year growth
- Lifetime value (LTV) of a customer
- Net promoter score (NPS)
- Percentage of sales representatives reaching 100 percent of the sales target
- Revenue by territory
- Revenue by market
- Sales costs vs. percentage of revenue
Already have the right sales performance metrics? Check out how to Improve Sales Effectiveness
Sales Activity Metrics
What are Sales Activity Metrics?
Sales activity metrics show what your sales representatives are doing on a daily basis, which can be influenced by sales leaders for improvement. These metrics can reveal weaknesses that may inhibit a sales representative’s performance.
Activity sales metrics include:
- Social media engagement
- Scheduled meetings
- Sales presentations
- Referral requests
Sales Pipeline Metrics
The sales pipeline shows the sales process and illuminates any strengths and weaknesses within it.
Sales pipeline metrics include:
- Length of the sales cycle
- Open opportunities by month or quarter, team or individual
- Closed opportunities by month or quarter, team or individual
- Value of the pipeline by month or quarter, team or individual
- Value of sales by month or quarter, team or individual
- Average contract value (ACV)
- Win rate
- Conversion rate
Lead Generation Sales Metrics
Prospecting is a factor in the overall performance of your sales representatives. Lead generation sales metrics identify strengths and weaknesses.
Lead generation sales metrics include:
- Volume of new opportunities
- Lead response time
- Percentage of lead follow-up
- Percentage of lead follow-up within a given time frame
- Dropped leads
- Qualified leads
- Customer acquisition cost (CAC)
Sales Productivity Metrics
What is sales productivity?
Sales productivity is the rate at which your representatives make their sales target. The less time it takes for a sales representative to meet the sales target, the higher the sales productivity.
Sales productivity metrics include:
- Percentage of time selling
- Percentage of time on data entry
- Percentage of time in content creation
- Percentage of marketing collateral for use by sales representatives
- Number of sales tools used
- Percentage of high-quality lead follow-up
Leading vs. Lagging Indicators
Your performance indicators are broken down into leading and lagging indicators.
Leading indicators predict your results, and while they can be more difficult to measure effectively, they’re easier to change and influence in advance. Activity metrics are an example of lagging indicators.
Lagging indicators are reactive and reflect your results. They’re easier to track, but more difficult to influence. A low quota attainment or top-of-the-funnel weakness are examples of lagging indicators.
Sales Tracking Tools
With so much information to keep track of, utilizing revenue intelligence systems like People.ai, is helpful to keep everything organized and ensure you can make informed decisions moving forward.
A customer relationship management (CRM) tool is the main hub of information on your customers and prospects. The data held within the CRM is the foundation for reports and predictions to make strategic business decisions. Tools like People.ai automatically track contact and activity and populate your CRM with accurate, real-time data to the right opportunity accounts.
Once the sales information is organized in a CRM, marketing automation accounts for the leads coming into the pipeline. The data from marketing automation platforms can provide a holistic view of the prospects’ activities for your sales reports.
A buyer activity tracker monitors and logs the sales interactions from the buyer’s side, such as the content shared within the buying team, so your sales representatives can take action in real time.
Once you know how buyers respond to your content and interactions, that information can be used to coach sales representatives in effective sales. People.ai shows the calls, emails, meetings, and identifies people in the buying group, as well benchmarks sales rep performance for targeted coaching.
People.ai can take over the administrative work and allow sales representatives to spend more time selling. AI in sales can tackle activity logging, identify high-priority leads, create new contacts, predict a forecast for the quarter, and more. This all saves time and helps you become more proactive in managing your sales team.
Create a Winning Team
Compiling and tracking these sales metrics is much easier with AI in sales and sales tracking tools in place to track the right indicators, review them on an ongoing basis, and address performance weaknesses within your process, pipeline or team.
In his book, The Seven Habits of Highly Effective People, Stephen Covey said, “When people are crystal-clear about the most important priorities of the organization and the team they work with and prioritize their work around those top priorities, not only are they many times more productive, they also discover they have the time they need to have a whole life.” Once the winning formula is identified for your unique business, you can create a replicable, scalable process that works for your business goals.