Optimising Sales Performance and Sales Conversion Statistics
5 key Sales Conversion Metrics to Monitor
- Sales conversion rate
Measuring sales conversion as a metric helps you identify exactly what is working and what is not working in your sales closure process. Sales conversion metrics show you how many leads in your sales pipeline versus how many have converted into paying customers.
The formula for sales conversion is:
Sales conversion rate = (number of sales / total number of visitors ) * 100
- Desktop vs. Mobile Conversion
Simply put, mobile conversions are lower performance than desktop devices. Customers that use a mobile device have different user intent than desktop users who are a lot more likely to make a purchase than someone on a phone.
However, if you provide enough motivation and decrease the number of friction points in the customer’s journey, more mobile users will convert.
But don’t just take our word for it. If you check out desktop vs mobile conversion in your sales funnel on Google Analytics, you will see how many of your visitors are converting on mobile versus desktop.
- Sales Velocity
Something to remember about sales velocity is that despite what the name suggests it is not about measuring the speed of a sale. No, it’s actually the measurement of how fast you are making money. Take a brief look at the formula below:
Sales velocity = (number of opportunities * Average Deal Size ($)* Conversion Rate) / Sales Cycle Length
- The Source of your website visitors
It does not matter how many visitors you are getting on your website, if they are not interested in what you are selling, visits won’t translate into purchases.
Because of this, you can see why it is crucial that you know your site’s traffic sources. It’s also good to look at how each visitor is interacting within your sales pipeline.
Start by looking at your sales statistics for each source of traffic and see how each source is converting. You should also find out at what stage traffic is dropping off to identify any issues with your sales funnel.
When you go through this process, you might find that different traffic sources are converting at different rates. This is when you should think about next steps. For example, ask questions like:
- Is it worth optimising your site for the visitors coming from traffic sources with a disappointing performance?
- If a source of traffic already converts well, should you spend time optimising the site to get more traffic from it?
- If you can see visitors from one traffic source are mostly dropping off on a specific page, why do you think this is? What could you do to optimise that page and keep them moving further down the sales funnel?
- Cost Per Acquisition
Keeping track of the CPA, or cost per acquisition metric is important if you want to make sure that you’re bringing in more money than is being spent on acquiring new leads.
The formula to measure CPA is:
CPA = total spend / total number of sales
5 Key tips to maximise sales conversion rates.
82% of B2B decision-makers believe sales representatives are unprepared. That is a big number, so how do you make your team in the top 8% that are prepared? Have a look at our tips below to answer that very question:
- Keep the waffle to a minimum. What I mean by that is to make sure that your meetings are engaging and filled with the latest market intelligence. This will encourage people to listen and interact rather than zoning out. Sales representatives with a strong understanding are more reliable and customers will trust them.
- Give your customers what they want. Provide your customers with content that will solve their problems while letting them know all about your wonderful services. You could even include testimonials from like-minded buyers to encourage conversation and make your business more relatable.
- Do your research before the call. Plan how you want the sales interaction to unfurl, watch a video or review a white paper. All of this preparation will increase your closing rate. With a clear understanding of the position your customer and their company are in, you will identify their needs in record time and provide the most fitting solution.
- Find out who the top 6-10 decision makers are within a deal and get in touch with each of them individually. Nothing says unprepared like trying to contact the wrong person or just waiting for a reply. Do your research, ensure you know who the key players are and build a relationship with them. They will appreciate a helpful pitch much more than a sales rep just trying to push a contract.
- Look at the sales script you are currently using and see if there are any glaring red flags. For example, talking only about yourself or making promises that are just not realistic are both going to drive a wedge between you and your potential customer. Try writing a variety of scripts to see how the changes affect your closing percentage. When you know what works and what doesn’t, compose all the best bits into one fantastic script.
How to successfully forecast sales within the CRM
- Closed-lost or ghosted leads = Previous opportunities or customers or opportunities that have been unsuccessful.
- Event leads = Someone interested in your product that you meet during an industry event or trade show.
- Friends and family leads = Someone interested in your product that you encounter from within your network.
- Inbound leads = A lead that has come in via your website.
- Lead = Someone that has taken an action that shows some level of interest in your product.
- Marketing Qualified Leads (MQL) = A lead that has been obtained via a targeted marketing campaign.
- Sales Qualified Leads (SQL) = a lead that has been identified as ‘ready to buy’ by the sales team.
- Prospect = A contact at a suspect company who has a need and may search for a solution in the next 12-24 months.
- Referral leads = Leads from current customers.
- Suspect = A company in your database that fits your ideal customer profile and has the potential to buy your product or service.
- Target account leads = Leads in specific targeted accounts.
How to achieve accurate sales forecasting
CRM is the simplest way of accurately forecasting sales. Look at the following strategies to guide you.
- Keep an Accurate Record of Sales Data
Businesses create sales forecasts based on past data found in the CRM system. Because of this, it is crucial that your sales management and their team provides accurate and up-to-date sales data on all deals and opportunities for the CRM system. Anything incorrect or outdated could change the forecast predictions and impact your future planning.
- Business Planning
Within the CRM, the sales forecasting summary gives you valuable insight into both future projected sales, deals currently available in the sales pipeline and your team’s overall performance. This data will not only help you focus your sales reps on the most profitable sales campaigns but also show you the top sources for lead generation.
Using current sales forecast data, you can focus on producing a top-quality business plan, all based on reliable statistics.
Likewise, always make sure that you note your sales representatives’ performance and compare it to a previous period. By doing this, you can discover reasons behind lost sales and start increasing your team’s overall productivity.
- Making it Simple
To make things simple, start by choosing a time for your sales forecast that will not distract your sales representatives from their primary aim, sales. This will help keep everything running smoothly.
Sales forecasting has many uses within resource management, budgeting and even hiring. You can utilise it to discover issues in marketing campaigns or in your business plan.
Overall, as sales forecasting is so intertwined throughout your business, it is crucial that you keep all your data as accurate as possible to make the process as simple as can be.
- Take Advantage
Are you using CRM to your advantage?
The Customer Relationship Management system has a lot of incredible uses within your business, including:
- The ability to perform accurate sales forecasting based on a complete analysis of a company’s history and data processes.
- Finding out how many deals there are in the sales pipeline, look at how much profit you are bringing in and get information about the freshest business leads.
- Identify the top performers within your sales team. Using this information, you can set higher and more realistic targets to improve your productivity.
These advantages should be encouraging enough to get your sales managers and their teams trained on the CRM system. Making sure they know how to leverage the insights available in the CRM system as accurately as possible is crucial to your future growth.