Having a clear understanding of your sales statistics can essentially help you sell effectively and make informed changes about your approach to customers. This blog will aim to take you through the essential sales statistics every brand needs to measure, alongside how key metrics can clearly visualise sales performance.
Without a good knowledge of your sales statistics, brands cannot clearly forecast sales performance. By the end of this article, you will have a strong grasp on the statistics that will have the biggest impact on your company growth, helping to balance productivity in areas that need it most.
What are the best sales statistics you can measure?
How you can benefit from analysing your sales statistics
By analysing your sales statistics, you get an excellent overview of your entire business. This gives you an idea of where you are succeeding, helping you identify areas that need attention. By analysing your sales performance data, you can meet your company goals faster than before. Using insight from sales data, you can improve awareness of your current sales strategy.
Driving your growth with sales analytics
Whether you’re an international company with a huge team of sales professionals or a start-up with only one person on your staff, sales analytics tools can help your business grow by helping you identify valuable leads to increase sales conversions. Many sales analytics tools are low cost or even free. So there is nothing stopping you from improving your sales opportunities today!
Test how minor changes to your website can improve sales performance. The easiest way of thinking about this is to split it into three tasks:
- Test small changes to your site.
- Measure the results to see if those changes drive an improvement in sales.
- Make the changes permanent to your website based on your findings.
Ask yourself: What encourages a customer to make a purchase? To answer this, make a slight alteration to your site and test the changes compared to the current version. Don’t assume you know the answer before the testing is complete. Often, you’ll find yourself quite surprised by the results. People are complex and difficult to predict.
Don’t be blinded by the results of the test. If your test results give you an insight into something you weren’t expecting, take note. Even basic sales statistics can give you huge insight into how to improve the performance of your site.
Preparing your website for A/B Testing
An A/B test is when you create two or more versions of a webpage or specific page element and show them to customers at random to compare the performance of the two versions. We recommend you run split A/B tests for the following.
- Content and layout of the Homepage.
- Key pages within the checkout journey.
- Places where customers regularly drop off the site. This could be sign-up pages, account registration pages or even the homepage.
- The keywords and copy on the page. (For example, the headlines and key selling points).
Which sales metrics should you consider measuring?
If you focus on analysing sales statistics once a month, you cannot capitalise on short-term opportunities for your business. Depending on your target market and business goals, the factors you will want to focus on for your business will vary. Below are some metrics worth considering for measurement:
- AOV – Average order value
- Gross revenue and net profitability
- Customer lifetime value
- Product and service categories
- Traffic sources
Why customers are the ultimate sales metric
Getting access to data and knowing how to use it is never a bad thing. However, sometimes sales organisations forget what their most important source of information really is. Their customers.
Listening to the customer is the ultimate data source. It will show you how your products/services are being received so that you can understand the wants and needs of your current customers as well as how to target future prospects.
How metrics and reporting can help measure sales productivity
What are sales productivity metrics?
A good measure of sales productivity is the time it takes for your sales representatives to reach their sales targets. Successful sales teams reach their targets quicker, leading to a higher level of sales productivity.
The aim of measuring sales productivity metrics is to understand the factors that result in the best sales performance. Measuring sales performance in this way can help you refine your sales strategy and perform more accurate sales forecasts.
Sales productivity metrics include the percentage of:
- Marketing content for use by sales representatives
- Measuring the time spent selling
- Measuring the time spent in content creation
- Time spent on high-quality lead follow-up
- Time spent on data entry
- The number of sales tools used and their cost
How to Report and Measure Sales Productivity in a CRM system
Measuring sales productivity
Understanding how sales representatives use their time will show you how effective their activities are at increasing your business’s revenue. To do this, consider the three categories of sales metrics that affect productivity: efficiency, effectiveness, and performance.
How to examine the productivity of your sales managers and teams
To make sure your sales statistics are healthy, benchmark the current performance of your sales reps. You can then find out where they are succeeding and identify areas for improvement.
1. Inspect current sales activity
To begin, list all the activities your sales representatives might do during the sales cycle. For example:
- Inviting customers to meetings.
- Writing sales emails.
- Creating proposals.
- Preparing for sales calls.
- CRM administration.
- Creating content.
- Looking at expense reports.
2. Measure the impact of key sales tasks.
Check how effective each of these activities is. The more impactful the activity, the easier it will be for your sales representatives to close deals.
A good way of doing this is to make sure your team is organising their activities by how impactful they will be.
Activities with a higher impact will push buyers forward. For example, sales training and call preparation are both forms of high-impact activities.
Although low-impact activity (such as content creation or expense reports) is important, it doesn’t directly encourage buyers to move forward.
Once you have ranked the activities of your sales representatives’ with high or low impact, you will know where they should spend most of their efforts to drive sales performance.
3. Use urgency to prioritise sales tasks
Urgency can prioritise tasks based on how close you are to closing a sale and whether the sales representatives can outsource the task.
Know exactly how urgent each high or low-impact task is so that you can prioritise effectively.
- High Impact/Urgent: Account research directly pushes buyers towards you so it is high impact and urgent.
- High Impact/Not Urgent: Creating content is still high impact but not as urgent. This is because it can be outsourced to a marketing team, so the sales reps shouldn’t have to worry about it as much.
- Low Impact/Urgent: Updating your CRM is low impact because it is not directly encouraging sales. However, it should still be urgent, as it can negatively affect other teams.
- Low Impact/Not Urgent: Weekly sales meetings are both low impact and not urgent because you’re far from gaining any sort of revenue.
4. Measuring the time spent on each task
Finally, calculate how much time each task takes on average. You could get this information through your CRM if it has time-tracking or a simple survey. An interview with your sales reps can also give you the insight you need.
By following these steps, you will have achieved better sales statistics, have a high-performing sales team and a more accurate sales forecasting to plan for future growth initiatives.