Sales isn’t just about charisma and a great pitch, it’s a numbers game too.
But which stats should you be analyzing? Let’s break it down:
Conversion Rate
This one’s a no-brainer. How many leads are turning into actual customers? A low conversion rate might mean your sales process needs tweaking.
First Meeting Conversion
How many first meetings on new opportunities do your salespeople need and at what frequencies? The first meeting to close ratio gives them this number. With this knowledge they can focus on getting those meetings consistently with qualified prospects to maintain a healthy pipeline.
Lead Response Time
Timing is everything. How long does it take your team to respond to a lead? The quicker you jump, the higher your chances of landing the deal.
Average Deal Size
All deals aren’t created equal. Track your average deal size to ensure your efforts are hitting the mark. Otherwise you may need to redirect your targets or adjust your target quantities.
Sales Cycle Length
How long does it take to close a deal? A shorter cycle means more deals in less time. If it’s too long, you might need to revamp your sales process.
Customer Acquisition Cost (CAC)
How much are you spending to win a customer? If the cost is too high, it’s time to streamline your processes and get more bang for your buck.
Customer Lifetime Value (CLV)
This is the total revenue you can expect from a customer over their lifespan. Your CLV should be higher than your CAC for a profitable business.
Analyzing these figures will help you fine-tune your sales strategy and keep you on the path to success.
Remember, in sales, the devil’s in the data!
