With more enhanced accessibility of data than ever before, many business enterprises find it challenging to manage their sales performance. Companies of all shapes and sizes are looking for an aiding innovative tool that allows them to seamlessly manage their sales output and effectively use sales metrics and analytics.
Enter the Advanced Sales Analytics tools and Big Data. It provides a more refined picture of the sales numbers, assisting the sales team to improve performance. Sales analytics makes use of sales data, trends, and metrics to generate real-time insights and set targets for the next financial period. In addition, it also sets major objectives for the sales team.
The analytics mainly focus on developing important strategies for achieving the sales target in both long and short-term formats. We can cite the example of a sales director where he is given role-specific objectives of achieving a particular revenue target and sales productivity goal is set for the account management team.
Keep Monitoring Sales Analytics Regularly
The main motive for monitoring your sales analytics is to
- Increase the accessibility of data and generate accurate reports from anywhere.
- Get automatic updates on sales management, analytics revenue, and performance without any inputs from the IT department.
- You can view all your data at the micro and macroscopic level and keep an eye on KPIs to make quick data-driven decisions.
With sales data at your disposal, you can easily gain transparency in the salesforce and mentor the sales team. The team can focus more on a wide range of activities and professionally operate in a fast-paced environment.
Role of Sales Dashboard in Providing Sales Analytics Reports
Many sales reps find data transparency a tricky task. Thus, the sales dashboard has come to their rescue as it provides them quick access to sales analytics reports and tracks their performance every month. It also helps organizations reach their revenue targets. It is easy to use and intuitive tool to communicate a clear message. You can use the dashboard with other free tools such as Google Sheet, MS Excel or PowerPoint.
Let’s get through the top 7 metrics analytics that you need to keep your eyes on-
Availability of Open Opportunities
One of the most important factors that you need to focus on is how many open opportunities are available for each of your sales executives. By finding out the number of opportunities created and available, you can determine if your team is successful in developing new opportunities.
A proficient sales representative is someone who not only pays attention to open opportunities but also keeps his eyes open on the total number of closed opportunities.
Let’s explain this with an example. Suppose you have a total of 10 open opportunities every day but you are closing only 7 of that per month. In that case, you need to analyze why you are closing only a few opportunities. It may be that something has gone wrong and you need to address those issues as quickly as possible.
Determining Your Win Rate
The win rate is calculated through closed-won opportunities divided by total closed opportunities. It is a formula using which you can determine and understand the success rate of your sales team.
These metrics will help you analyze if your sales rep is finding it difficult to close the deal. You can work with all those sales reps to identify what issues they are facing and where they are struggling. It will not only help to strike more deals but also boost their confidence.
The Length of Sales Cycle
The sales cycle is defined as the average time your team takes to strike a deal. You have to measure this metric beginning from lead generation to closing of the deal. The length of the sales cycle depends on various factors such as the price of the product, the performance of the overall industry and sales. However, please note that one sales cycle length is not appropriately fit to suit the needs of all industries or even all businesses in the same industry.
The Ratio of Cost of Sales to Revenue
It is one of the most important metrics that assist in monitoring the overall efficiency of your sales team, without having to look at each of the individual performances. You can calculate your total cost that includes your expenditures on the sales team such as salaries, and commissions. The cost of sales to revenue ratio helps to evaluate and understand what investment level is needed to surge sales and improve performance.
On An Ending Note
In addition to these vital metrics, there are many more on the list that can help to measure sales performance and sales data analysis. It can also assist you in finding out what are the key concerns that you need to address and create more sales opportunities. You can hit your target revenue and even successfully manage your team by focusing on the metrics.