Which sales metrics should you track?
If you’re just getting started with your sales process, what metrics should you track?
There’s a ton of technology that enables you to measure and analyze everything from minutes talked to number of words per average email and length of email subject lines.
But when you start out, you really want to keep it simple.
Things will grow complex over time all by themselves—it’s unavoidable. Complexity isn’t difficult to achieve, it’s difficult to resist. Invest your efforts into simplifying.
Here’s what you should be tracking: AQC
A = activity
Q = quality
C = conversion
These three numbers are enough for any sales team to make informed decisions and keep track of their performance.
Example: Sales team Cold-Call-A-Lot
A (activity): How many numbers do they dial? How many attempted calls (no matter how many of these calls got answered, went to voicemail, or got lost in dial tone limbo)?
Q (quality): What’s the reach rate (number of people reached/number of dials made * 100. e.g. 15/100*100=15% reach rate). How many times do you actually get to speak with a decision maker on the phone?
C (conversions): How many of the people you spoke with did you convert on the phone? How you define a conversion depends on your sales process: scheduling a demo, making a sale, signing up for a free trial, setting up an in-person meeting, etc.
These three sales metrics are everything the Cold-Call-A-Lot sales team needs to know. They tell you which part of your sales process needs to be improved first: Do you need to dial more numbers? Is your reach rate too low? Are you reaching a lot of people, but fail to convert?
We’ve shared some cold calling conversion funnel benchmarks in the past that should be helpful to you.
Example: Sales team Cold-Email-A-Lot
If you’re mostly doing cold emails, your AQC would be:
A (activity): How many emails did you send?
Q (quality): How many of those emails were received and opened?
C (conversion): How many responses did you get (or clicks on a link if that is your desired conversion)?
Three very simple, basic sales metrics, but that’s really all you should be tracking in the early days of your sales process. Spend more time closing deals, and less time measuring activity.
Once you find that this basic AQC-framework for tracking your sales performance is no longer sufficient, you can transition to a more sophisticated model. That's what we cover in our extensive guide 18 essential sales KPIs: What to measure and how to track everything.
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