Sales is a numbers game. And more often than not, those numbers exclusively revolve around revenue. That’s why, when sales leadership looks at their team’s activity to measure productivity, common sales productivity metrics include:
Number of actions (calls/emails) per day: How many times have sales reps tried reaching out to potential buyers?
Opportunity creation: How many opportunities, for how much potential revenue, are a result of sales reps’ activity?
Closed won/lost business: Looking down the funnel, what’s the aggregate close rate of qualified opportunities?
Here’s the problem with the above sales productivity metrics: Sales productivity should be measured by KPIs that depict both the effectiveness of outreach and the efficiency at which reps perform those tasks. But the analysis and subsequent insight gained from these metrics focus too much on effectiveness and largely ignore day-to-day activities, which impede efficiency.
With all that said, let’s walk through three advanced sales productivity metrics which reveal strengths and weaknesses within the entire sales process.
Your Guide to Important Sales Productivity Metrics
1. Time to Action:
Key question answered: How much time do sales reps waste determining which accounts and contacts to get in touch with?
How to compute the metric: Minutes spent researching accounts and contacts/identified contacts
Why it’s important to measure: The first step in any sales process is identification. But even if you understand the firmographics and demographics that define your Total Addressable Market (TAM), your team of reps still must find essential B2B contact data before reaching out. Thus, what we’re really tracking here is the opportunity cost of initial research.
2. Attempt to Connect Rate:
Key question metric answered: Is your outreach resonating with target audiences?
How to compute the metric: Total connects/calls attempted OR email responses/emails sent
Why it’s important to measure: Understanding this metric helps organizations grasp key elements of their sales process.
- From a tactical viewpoint, is the messaging used in outreach adequately communicating your organization’s value proposition?
- And from a functional standpoint, is poor contact data leaving your reps with no choice but to dial switchboard numbers? What about account intelligence? If your sales reps hit a roadblock, do they have access to other key players within the organization?
3. Connect to Opportunity Rate:
Key question answered: How many days are lost talking to contacts who can’t buy?
How to compute the metric: Total minutes spent engaging disqualified contacts/1,440 (the total number of minutes per day)
Why it’s important to measure: Again, this speaks to a sales rep’s ability to identify the right account to engage, and then connect with the appropriate contact within that organization.
More on How to Measure Sales Productivity
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