The sales analytics strategy is where you keep a check on your market trends, sales data, and data from other metrics to interpret them for better insights into the future sales performance of your business.
The sales analytics practice has been around for a long time, but many companies have unlocked new power for their sales metrics with recent advancements in technologies. The proper method for sales analytics is to maintain all the activities together. This practice makes it easier for the sales team to determine the revenue outcomes and plan accordingly to meet the goal on time.
The chief purpose of sales analytics is to leverage your sales performance and aid you to implement new strategies. With the increased competition in the digital marketing world, the pressure to surpass the competitors are enormous. In this post, let us explore those sales metrics that should be strictly included in your sales analytics strategy.
- Sales growth
This metric is a significant fragment of sales analytics. When put in simple words, sales growth is the measure of the potentiality of your sales team to escalate profit in a given time. No increase in revenue implies that your business is at risk and the competitors are way ahead of you. The sales growth metric is directly connected to the revenue and profitability, because of which the metric is considered a strategic indicator.
- Sales target
The sales target metrics compare the sales revenue with a pre-set or previous sales revenue. For example, the sales goals can be a monetarily value, number of accounts, the number of divisions sold, etc. To achieve the sales target, make sure the target is visible to the entire sales team. Executives, sales managers, sales reps, and sales directors are those who usually use sales targets.
The sales opportunity metric provides you with an overview of the chances of closing a sale. Every prospect has a particular buying value associated with them; the sales team has to optimize their efforts considering this. The rise in prospect per value is an indication of success.
- Sales to date
The sales to date metric enable you to measure and trace the overall sales and compare the values against the previous periods. To effectively track the deals, you need to have a count of the total number of purchases that happened in the last year.
- Product performance
This metric provides your sales team with a better insight into which product is selling better. It is necessary to keep track of the sales line of every product as the sales team will be indulged in selling multiple products. This way, you can set a target for every product.
- Lead conversion rate
The lead conversion or sales conversion rate is used to measure the efficacy of your sales team in turning the potential leads into valuable customers. Lead conversation rate insights have the power to maintain the sales and marketing team in the same line in every part of the customer journey.
The quote-to-close metrics is another chief productivity metric that keeps a check on the efficiency of your sales team in closing a deal. Quote-to-close, otherwise called the sale closing ratio, to keep a count of the total number of customers engaged with the sales team and the number of successfully closed deals.
- Sales per rep
The overall framework of your sales team is an unavoidable element when developing sales analytics. The probability of expert representatives and managers performing better than junior employees is relatively high. In short, the sales per rep metric measures the capability of every sales employee to produce revenue for your business. This metric is most crucial as sales representatives are the ones who directly communicate with potential customers.
- Average purchase value
As pointed out earlier, the primary aim of sales analytics is to expand the company revenue; increasing the average price value is the majority accepted method to do this. Therefore, tracking this metric and assimilating this with historical trends is a brilliant strategy.
- Sales by region
Every business’s revenue has regional differences, and it is essential to understand them. Sales by region metric will provide you with clear visibility across territories. This offers you insights on which region is more profitable and which place you face high competition.