Some sales professionals become a little uneasy when it comes to measuring performance. They are uncomfortable with pipeline reviews and evaluation sessions (unless they have had a good month and the forecast is positive). When the numbers are low, their anxiety usually begins to climb. Why? Because poor performance feels like failure in the minds of most sales professionals, and the fact that many sales managers tend to react negatively to low numbers only reinforces that feeling of failure.
This anxiety over measuring performance is one reason some sales professionals are slow/resistant when it comes to CRM adoption; after all, why go out of your way to create a data trail that can be used against you during your next review? However, this anxiety is not only misplaced, it could also reinforce a cycle of poor performance that could eventually lead to truly bad news.
If you are a sales professional who dreads dealing with sales metrics, here is a piece of advice: don’t shoot the messenger. The fact is that – seen from a certain perspective - sales metrics are simply neutral indicators that help track underlying processes that have intrinsic value. Sales metrics function in the same way that the oil light does on the dashboard of your car. If the light comes on, the problem isn’t with the light, the problem is with the engine. It doesn’t help to say, “I hate that oil light; it really bothers me. I don’t see why I should have to look at that light all the time.” By looking at the light, you are being given important information about the condition of your engine, so that you have a chance to find and fix the problem before it is too late. That is exactly what sales metrics do; they point you to activities and issues that are vital to the engine that drives your revenue, and not only should they be taken seriously, they exist to provide you a roadmap to future success.
Highly successful sales professionals understand that the secret to success is in the metrics – whether they are trending up or down – because those numbers always have something to teach us. Are the numbers up? That is good, but don’t stop there; find out why they are up so you can replicate those behaviors or conditions and keep leveraging them for more success.
Are the numbers down? Don’t panic, everyone – even a highly successful sales professional -- has a poor quarter occasionally. In this economy, a lot of people are struggling and it is nothing to be ashamed of. The good news is that even when the numbers are down, they are still pointing the way toward success. Study the numbers and make sure you understand what they are measuring, so you can find out where the problem is and address it. The more closely you follow the numbers, the faster you can identify issues and the sooner you can implement new strategies that will help drive you to greater success. To ignore the numbers is to guarantee the problematic trend will continue, and there is no way that will end well for you.
So, the most important question is, “What should you measure?” Highly successful sales professionals measure everything, not just the number and margin of the deals at the end of the quarter. Those numbers only tell one small part of the story. More importantly, those numbers alone won’t explain how you got there or where to go from here. For that, you have to look at the numbers behind the numbers. Quantifying and evaluating every sales activity related to every opportunity will uncover the truth and point the way to more success in a way that simply counting the money can never do.
If you want to produce accurate sales forecasts, manage the forward pipeline, develop better account plans, or develop a targeted performance improvement plan, you must track a variety of sales performance activities on a regular basis. In this way, you will be able to adjust to rapidly changing market conditions and implement effective new strategies that will help you close business faster, at higher margins and drive greater revenues year over year.
Here are some of the key sales performance activities you might want to track on a weekly basis in order to determine how effective you will be at reaching your goals:
You can ask similar questions around:
The point is, the more you measure, the more you learn about what your strengths and weaknesses are, where you need to adjust your game plan, where you are consistently most successful, where your best opportunities are, and what skills you either need to use more often (because they really work) or what skills you need to work on (because you will drive more revenue if you do). Above all, don’t resent the CRM; the CRM is your friend, as well as your best tool for putting all of this critical information right at your fingertips.
You have probably heard this said numerous times: information is power. Nothing could be truer when we think about achieving exceptional success as sales professionals. Maybe you are happy with what the metrics tell you; maybe you are not. That doesn’t really matter. What does matter is that the information woven into those numbers will help you map your way forward. Once you have evaluated that information, you will have the power you need to change your professional DNA and push your success to the next level. And keep it there.
Walter Rogers is the President and CEO of Baker Communications. Baker Communications is a sales training and development company specializing in helping client companies increase their sales and management effectiveness. He can be reached at 713-627-7700.
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