How to Measure the Effectiveness of Your Sales Process
You’ve trained your salespeople on the actions required to move prospects from beginning to end stages of the buyer’s journey — but how do you know if it’s actually working? What factors should you be taking into account? And how can you improve it if it’s not functioning as well as you’d like?
The concept that underlies all those points is known as sales effectiveness. Here, we’ll go over what that means, how to measure it and provide steps you can take to improve your sales process. And if you’re short on time, use these links to jump to the information you need.
Once you understand which metrics you should be on the lookout for, it’s time to evaluate and measure your team’s effectiveness at each stage of the buying process.
How to Measure Sales Effectiveness
1. Observe your sales pipeline.
This involves understanding how your leads move through your buyer’s journey and where they get stuck. By tracking metrics such as conversion rates, time in each stage of the sales process, and win/loss ratios, you can identify any bottlenecks in your sales process and take steps to address them.
2. Look at your engagement and activity.
In addition to pipeline metrics, tracking activity metrics is essential to understand how your sales team engages with potential customers. You can track metrics such as calls, emails, and scheduled meetings. By monitoring these metrics, you can identify which activities are most effective at moving leads through the sales funnel and coach your sales team accordingly.
3. Carefully study your win and loss rates.
As you move closer to closing deals, tracking sales progress to measure your team’s effectiveness at closing deals is essential. This includes tracking average deal size, sales cycle length, and win/loss rates, as we mentioned before. By analyzing these metrics, you can identify areas where your sales team may need additional training or support to improve their ability to close deals.
4. Evaluate how your sales reps influence or upsell customers after the initial purchase.
Finally, it’s important to measure the impact of your sales efforts on your customers. This can look like tracking customer satisfaction, retention rates, and referrals. By understanding how your sales efforts impact your customers, you can adjust your sales process to meet their needs better and persuade them to repurchase your product or service later.
These should be your starting points for tracking your sales effectiveness. But if you already have a process in place — but not the results you want — then you can take steps to improve your process.
How to Improve Sales Effectiveness
Invest considerable time, energy, and resources into training.
Training is the most fundamental, straightforward base to cover when you’re trying to get there. Make sure your reps have a thorough understanding of your sales process, preferred sales methodology, and your product or service.
If you feel your training isn’t extensive or rigorous enough, consider enrolling your team in an externally coordinated sales training program.
And while some of these programs might be pricey, they can still be extremely valuable in helping your reps refine their sales skills and improve their sales effectiveness.
Refine your opportunity management infrastructure.
Opportunity management gauges sales effectiveness by tracking and managing sales opportunities. It helps prioritize interactions with potential customers based on their business potential and stage of the relationship.
Refining opportunity management infrastructure also exposes flaws in sales processes for continuous improvement. Sales effectiveness can be improved by establishing a pipeline, encouraging research, tracking contacts, and having a holistic view of the sales pipeline. This allows reps to be set up for success and improve sales effectiveness.
Leverage a sound sales process.
Salespeople require a sound framework for guidance to be practical. Reps need to understand how to guide opportunities from prospecting to closing if they’re going to be effective — as the sales process’s effectiveness influences the reps’ success.
Making the sales process as solid and efficient as possible is vital. Take time to analyze the process if it’s inadequate, pin down the problematic steps, and provide a more thorough perspective to reps. Define specific actions and exit criteria for each step, measure changes, and stay aware of any issues moving forward.
Those are all viable avenues to improve your sales effectiveness. But if you’re looking for ways to simplify and automate your sales effectiveness, consider leveraging digital tools.
Sales Hub features tools to improve sales effectiveness at every sales pipeline stage. Elements like email tracking, templates, and call recording allow your reps to convert leads into opportunities more efficiently.
From there, tools like its appointment scheduler, automation capabilities, and live chat help support your reps’ efforts by keeping opportunities engaged. And pipeline management features offer your salespeople consummate visibility into their opportunities’ progress.
It’s an excellent option for any business interested in a multifaceted tool to reduce friction in its sales process and improve sales effectiveness.
Clari aligns your revenue team with efficient operational cadences for forecasting, pipeline reviews, renewals, and expansion. These allow for predictable revenue and insight that can improve sales effectiveness.
The program is an excellent resource for sound pipeline management. It gives you complete visibility into which transactions make up your inventory, what coverage each segment and territory has, and how much more you need to make the number in current and future quarters. These can help you identify risks and make better-informed decisions in your sales operations.
Pipedrive offers a decidedly sales-oriented CRM platform — tailored toward enabling hard sales with data and automation. The platform includes tools to retrieve web data about your contacts from online sources like LinkedIn. The platform can give you insight into the viability of pursuing the leads you gather.
The kind of intelligence and direction Pipedrive provides can set your reps up for success and boost your sales effectiveness. By giving them a leg up and a predictive edge in their engagements with prospects, Pipedrive ensures that your salespeople can consistently keep their sales efforts running smoothly and effectively.
Gong is a conversational intelligence platform that can provide sales reps and managers with real-time, actionable, AI-powered feedback on their calls. Those capabilities offer sales managers a bank of information to browse, benchmark, assess, and better understand their reps’ calls — allowing for meaningful insight to smooth over hitches in your sales process and offer reps more targeted, helpful feedback about their efforts.
Gong can improve your organization’s sales effectiveness by keeping your sales efforts sensible and streamlined, exposing any weak points managers have to address with individual reps and their teams.
Improve Your Brand’s Sales Effectiveness
Keeping tabs on the effectiveness of your sales process is critical to helping you gauge the health of your sales organization and ultimately learning how to sell better. If you want to get the most out of your sales operations, it serves you to understand sales effectiveness, how to measure it, how to improve it, and the best resources for optimizing it.
Editor’s note: This article was originally published in January 2021 and has been updated for comprehensiveness.