“What gets measured gets managed.” – Peter Drucker
How does your business define sales success? While some sales teams look strictly at bottom-line sales numbers or total units sold, it’s important to remember the lead management data available that can help your business evaluate team and individual performance.To help, we’ve put together a list of the top CRM metrics that can help you identify and achieve success.
Whether you look at it holistically, or filter it down to the salesperson, closing rate measures success at the most basic of sales activities: converting leads to sales. Some CRM systems auto-calculate this percentage for you. To calculate this on your own, simply divide sold leads by total leads and multiply by 100. The right number varies by industry. In the automotive space, for example, dealerships should strive to achieve a closing rate of 12-15%.
Appointments Set Ratio
In most sales operations, setting an appointment is the precursor to closing the deal. If you’re selling software, for example, you’re scheduling demo appointments. If you’re selling cars, you’re setting up test-drive appointments. To calculate your appointments set ratio, divide total appointments set by total leads and multiply by 100. As with the close ratio, the standard will vary based on your industry. Auto dealers should achieve 40-50% on this metric. If your sales team is not achieving the benchmark, then they are not taking full advantage of opportunities.
Appointments Shown Ratio
Although it may seem that setting an appointment with a lead can be the biggest battle, doing what you can to ensure the customer shows up for their appointment is just as important. To assess how your sales staff is doing this, divide total appointments shown by total appointments set and multiply by 100. Set a goal of a 50% show ratio or higher to ensure you are maximizing your opportunities.
Appointments Sold Ratio
The end goal for any sales team is to sell. Outside of looking at total units sold and your unit net, evaluating your sold appointments ratio can tell you if your sales team is operating at full potential. To calculate this, divide the total appointments sold by total appointments shown and multiply by 100. In an auto dealership, sales superstars can sell 50% or more of their appointments.
Remember that the data you pull from your CRM is only as good as the data that gets put into it. To draw accurate conclusions from your CRM metrics, it’s vital that your sales staff is using your CRM tool to its full potential. The more data input into the CRM, the more power you have to evaluate your performance and create strategies to improve it .
It’s one thing to understand your lead management data, but another to know how to draw conclusions from that data to make your business better. Come back next week for an article all about how to interpret this data and make it actionable, or contact the Opportunity Max team to learn more about opportunity management.
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