Sales managers need to be comfortable using their CRM tool and understand what the reports generated mean. There is a huge cost to generate leads going to sales so you need to know what activities the sales team are doing to convert them and what the actual conversion rates are. As a manager, you need to know what these metrics look like and how to apply them.
COVID-19 has forced sales agents out of model homes, becoming digital sellers, like their Online Sales Counselor (OSC) counterparts. Customer’s expectations are also transitioning to digital, so sales agents need to make sure they are meeting these needs.
With the push to digital selling, you need to be sure to have the right Key Performance Indicators (KPIs) for today’s business environment. Here are three of the most important KPIs.
1) Virtual Meetings and Appointments
As a sales manager, do you know how many virtual sales meetings your team is having on a daily basis? If you don’t, you need to create a new history type in your CRM and make sure that your sales team is associating that history item to the registrant’s profile.
Virtual meetings are the new face-to-face sales presentations. By turning on your camera when conducting a virtual meeting, you can more easily gauge a prospect’s reactions and interests. They are more likely to listen to you and you can take advantage of screen sharing features in these virtual presentations. Once done you can send them the recording as part of your follow-up.
These virtual meetings are high quality opportunities, usually with high conversion rates.
2) Deal Progression
Another important metric to know is deal progression which shows where your leads are coming from and where they are in the funnel. This looks at the leads in your system and maps all your agents’ activities, organizing them into positive, neutral, and negative outcomes.
Understand what activities were last done with these prospects and where how far down the buying journey they are. Use this information to ensure your team is taking proactive measures to close the deal. How many of our Facebook leads are progressing to a Sales Qualified Lead (SQL) and what activities do we need to do in order to close the deal? It’s important to optimize these sales activities and determine what the most effective sales processes are.
TIP: Get input from your sales team when setting up your sales processes. By including agents in the process, it makes buy-in easier and processes are more likely to be used by the team.
3) Outbound Call Volume
Homebuyers “expect” follow-up. If the prospect gives you a phone number, the agent should make that call. Your competition is unlikely to follow-up with a phone call, so that helps you stand out. It should be part of following up.
In order to track this, your agents need to associate their outbound activity with the registrant. You can then see how this has impacted their overall sales performance.
4) Activity Metrics and Conversions
Activity metrics are manageable and sales managers can have a direct impact on them. As a sales manager, you need to hold your team accountable and if they aren’t doing the required activities (email, phone, etc.), and you need to understand why.
It may take anywhere from 5 to 7 points of contact just to convert a lead to an opportunity and 7 to 12 to make a sale. If you don’t have these activity metrics in place in your CRM, you’re not able to see what your team is doing (or not doing) and manage accordingly.
Know how many leads are converting at each stage of the funnel—from capture to close. By recording these metrics, you can help each sales agent increase their daily activity.
As a manager you have an obligation to the company to make sure your agents are doing their jobs and following up with all leads. Based on all the money spent on marketing, you can’t afford to ignore them and miss opportunities due to inactivity.
What Other KPIs Should I Care About?
While the above focused on sales agent behavior, there are also a few other KPIs that you need to include in your dashboard:
- New Leads: How many unique leads are being generated for sales
- Lead Sources: What sources are most effective
- Website Analytics: What is your total website traffic and referral sources
- Lead Progression: What is the length of time required to move a Marketing Qualified Lead (MQL) to SQL and what percentage move from one stage to another
- Lead to Sale Time: What is the average time for a prospect to become a buyer
- Purchaser Conversion Rates by Source: What are the best lead sources to convert to buyers
- Secondary Source Conversion: What are the conversion rates for the various media sources
- Appointment Conversion: How many leads with an appointment convert to a purchaser
Your CRM is at the heart of becoming a data-driven company and reporting on these KPIs. You can’t see what sales, lead, or website activity is happening without having the technology in place to collect and share the information.
Want to understand what reports to use? Learn more about the reporting options available in Lasso CRM.