What are the best ways to assess your current sales process to decide what needs to be more data driven?
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VP Sales in Software5 months ago
I definitely agree with what Randi just described. I analyze the conversion rates from MQL to stage 0, MQL to stage 1, and so on. This helps me understand if we need more coaching and qualification or better marketing alignment.
I also look at connect rates, video open click rates, reply rates to emails, open rates, win-loss reports, sales cycle length, and ACV. However, activity doesn't always tell the whole picture. For instance, I've worked with someone in the past who had pretty low activity, but they were the top rep. I wanted to understand why, so I dug deeper into their process. These are the key things I look at when assessing our sales process.
CSO in Software4 months ago
Great comments already from Randi-Sue and Lindsey. My key metrics in measuring the performance of our inside software sales reps are trailing twelve month win ratios and loss ratios (with the difference being how many are left in the middle of the pipeline), and then determining how effective they are in moving prospects through the software demo phase. Because sales people are notoriously bad at recording their activity, I also want to know what other systems they use to organize their time and priorities. It is always surprising how many sales reps use spreadsheets instead of the company-sponsored CRM system. That will evade your data analysis, but the win and loss ratios won't.
For instance, examining the sales stages can be insightful. One of my key indicators is analyzing closed lost deals. I once realized that we had a high percentage of deals lost due to indecision from the customer. This was because we weren't doing a good job of qualifying early and often. The customer agreed it was a problem, but it wasn't a problem that needed to be solved immediately, so a lot of these deals got lost to inaction.
I believe in looking at the end stages and what they're telling me. I also pay attention to the individual performances of the sales reps. There's an individual component to sales, and in order for the whole team to perform, I need to know what I need to do for each individual. I start at the end and look at their outcomes and also closed losses. This helps me understand how to coach and mentor that person and identify any gaps in training.
Sales is a team sport, but individually, you need to focus on how you can help improve each person and what in your sales process can be done differently to help each person. Sometimes, little things like additional video training or role plays can make a big difference.