Sales Management Metrics

I ran across a comment this past week by Lance that resonated with me on the topic of sales management metrics. Any sales pipeline has a multitude of stages, each having a number of metrics which can be tracked. Too many metrics can become overwhelming.

I like Lance’s comment because it’s simple and logical. And it provides a plan for digging deeper when needed. The idea is:

• Focus on two key metrics:
  • number of contracts/quotes sent out (which could be the same as opportunities depending on how you define them)
  • close ratio
• If the first metric is lacking, climb up the funnel to investigate why the rep is struggling
• If the second metric is lacking, work on the rep’s approach

Lance also points out that top-of-the-funnel problems are most often associated with too few calls. I agree. Even if calls are not the highest probability lead generator, calls placed are often an accurate indicator of a rep’s drive.

What are your thoughts on this approach to sales management metrics?

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