Whether you’re a fast-growing startup or a giant corporation, there’s just one figure that matters: revenue. While revenue is a solid indicator of how your sales force has performed in the past, it doesn’t tell you how they’re doing right now or whether you’ll hit your revenue target in six months. Money doesn’t provide you any insight into how your salespeople actually sell, and it doesn’t give you any power over or control over how they generate more revenue.
This exposes salespeople to a lot of danger. If you’re not sure how you’re getting your numbers, it may take a lot more time to find the proper market trends, study your competitors, comprehend declining sales behavior, and alter your sales coaching program if you’re not sure how you’re getting them. A sales manager’s job is similar to that of a jockey. While the racehorse is galloping ahead at full speed, you must be on the lookout for potential threats and risks in all directions.
Income is still the most crucial metric of success, but it isn’t sufficient. The way consumers buy has changed in this digital age, and in order to adapt, we need to rethink how we do sales.
It’s no longer adequate to rely on lagging signs since by the time you notice something isn’t working, your competitors and buyers will have moved on.
Indicators that assist you to create predictable income will ensure that you always know what your monthly, quarterly, and annual revenue will be. You must first understand how your salespeople sell, what works, and what doesn’t in order to create predictable income. It’s vital to look at several indicators, such as efficiency and effectiveness indicators, to detect and track this. Sales preparedness tools (like Mindtickle) and customer engagement tools can be used to track efficiency and effectiveness metrics.
Below mentioned are the Indicators that identify the path to predictable revenue
A leading indicator is one that can change before the final result is obtained, indicating that it can genuinely predict the ultimate result (i.e. your revenue). Efficiency and effectiveness indicators are the measurements that are monitored. Traditionally, organizations have focused on efficiency measures. This, however, is no longer sufficient since market dynamics are changing, and efficiency is no longer sufficient. To thrive, modern sales organizations must also be efficient.
It’s all about making sure your salespeople “understand it.” They not only have the necessary product or service knowledge but their abilities have also been refined to the point where they can regularly have meaningful client interactions. They do so by assessing the individual activities that contribute to the achievement of your overall aim.
You’ll be able to obtain predictable revenue with the support of sales effectiveness metrics.
Productivity = Efficiency x Effectiveness
Because so much effort has gone into achieving this goal, measuring efficiency is quite simple. When trying to boost productivity, it’s always the first line of defense (ie. figuring out how to give your reps more power). There are a variety of metrics that may be used to assess this, including:
- Number of phone calls/meetings
- The number of opportunities that have been added to the pipeline / CRM
- Number of proposals/quotes submitted Percentage of leads converted into opportunities Percentage of chances closed
- Per-rep average deal size
- The time it took to get from the pipeline to the quota percent projection was met.
You may select to measure the ones that are most important to you based on your business objectives. Your reps, on the other hand, can only accomplish so much. You’ll eventually reach a point where improving efficiency yields lower returns or even results in a drop in productivity.
That’s why, in order to improve your rep’s capacity to fulfill their targets, you need to measure and manage their sales performance. The following are some examples of efficacy metrics:
- Understanding of the product
- Pitch in the elevator
- Scores for negotiators and challengers
- Skills in social selling
- Competitor intelligence
- Handling of objections
- Countless coaching sessions
- The total number of training certifications obtained
These indications have always been difficult to track, but Mindtickle’s sales readiness platform now makes it possible. It makes it possible to follow and measure these critical variables in a transparent and objective manner. More crucially, the effectiveness of sales income may now be easily correlated.
You can obtain predictable revenue if you can track how productive and efficient your sales crew is. If things start to go wrong, you’ll be notified ahead of time, before it affects your bottom line revenue. This provides you with the opportunity to correct the situation and avoid disaster.
What should you do now that you have made the decision to devote time to assisting your salespeople with the right sales effectiveness tools? According to the most successful companies, enablement activities should be linked to company priorities and focused on improving sales effectiveness.
To prepare your salespeople for the most productive client dialogues, you’ll need the right mix of role- and regional-specific information and training, as well as for instructions on when and how to use it all at the point of action.
Best-in-class sales leaders are always analyzing, learning, and adjusting their strategies. It’s critical to use KPIs and measurements to figure out what works, what doesn’t, and where you can improve in terms of speed, accuracy, and quality. Consider KPIs like call rate, win rate, sales cycle length, pipeline conversion rates, and the average number of touches required to convert. Use dashboards to see trends and learn more about what your sales reps are up to.
MindTickle Learning Board is a social and game-based learning management system that is cloud-based. It’s appropriate for IT, retail, education, travel, e-commerce, and telecoms. Onboarding, skills, updates, and coaching are all handled through MindTickle’s integrated platform. It incorporates active learning techniques to keep consumers engaged in the content rather than skimming it. To increase involvement and ensure that those who require training are actively performing each task, the system sends out emails and reminders to learners. The program creates comprehensive reports that contain participation data, learner progress, and content in the application.