Part 2 of 3 In A Series From M&S Consulting On Mining The Gold In Your Salesforce Org And Turning Data Into Revenue
Salesforce KPIs That Reveal the ROI Hiding in Your Data!
How much revenue do your contracts generate? How long does it take your team to close a deal? What activities did your sales team take to move deals to closed? How effective are your outbound sales calls?
Here’s how to mine your Salesforce data to find and eliminate sales bottlenecks.
request_quote Average Contract Value (ACV)
The average contract value is used to measure the average amount of revenue generated from a single customer contract over a specific period, typically a year. It’s calculated by dividing the total annual contract value (ACV) by the number of contracts.
ACV provides valuable insights into the sales team’s effectiveness in acquiring high-value customers and closing larger deals. It helps:
- Track revenue growth. Higher ACV indicates a focus on larger deals, potentially leading to faster revenue growth.
- Identify upselling and cross-selling opportunities. Understanding the average customer spend helps identify the potential for increasing contract value through upselling and cross-selling additional products or services.
- Measure sales rep performance. ACV can be used to compare the performance of individual sales reps and identify those who consistently close larger deals.
- Optimize pricing and product offerings. Analyzing ACV trends can inform pricing strategies and product development decisions.
currency_exchange Average Sales Cycle Length (ASCL)
The Average Sales Cycle Length (ASCL) measures the average time it takes to close a deal. It’s a vital metric for understanding sales efficiency, identifying bottlenecks, and optimizing your sales process.
What are the benefits of tracking ASCL?
- Identify sales efficiency. A shorter ASCL indicates a more efficient sales process, allowing more deals to be closed in less time.
- Pinpoint bottlenecks. Analyzing ASCL by stage can reveal bottlenecks in the sales pipeline, like lengthy qualification processes or slow contract approvals.
- Forecast revenue. Knowing the average time to close deals helps predict future revenue based on the current sales pipeline.
- Set realistic goals. ASCL helps set sales quotas and individual targets that are achievable based on the historical average cycle length.
- Compare performance. Benchmarking ASCL against industry standards or within the organization can highlight areas for improvement.
monitoring Sales Activity
Sales Activity encompasses a range of metrics that track the engagement and effort put into the sales process. It goes beyond measuring outcomes like closed deals and revenue but rather focuses on the actions and behaviors that lead to those results.
What are some key aspects of Sales Activity?
- Improved efficiency and productivity. By identifying areas of high or low activity, you can optimize workflows, allocate resources effectively, and identify opportunities for automation.
- Enhanced sales coaching and development. By analyzing individual activity, you can provide personalized coaching and feedback to improve sales skills and effectiveness.
- Early identification of potential issues. Consistent dips in activity or specific types of activities can be early warning signs of pipeline health issues, requiring prompt intervention.
- Better forecast accuracy. Analyzing activity trends can help you predict future sales performance with greater accuracy, leading to better resource allocation and decision-making.
Remember: The specific metrics and targets for Sales Activity will vary by industry, company size, sales process, and overall business goals.
phone_forwarded Outbound Calls
The Salesforce KPI “Outbound Calls” measures the quantity and effectiveness of calls made by sales representatives to prospects and existing customers. It’s a crucial metric for evaluating various aspects of outbound sales performance and optimizing the sales process.
Here’s a breakdown of what Outbound Calls can tell you:
Volume
- Number of calls made: Tracks the overall activity level of sales reps and identifies those who are actively prospecting or engaging with customers.
- Calls per day/week/month: Provides a baseline for comparing individual and team performance, setting goals, and identifying efficient sales styles.
- Call duration: This can indicate the complexity of conversations, engagement levels, and opportunities for coaching or process improvement.
Effectiveness
- Connect rate: Measures the percentage of calls reaching the intended recipient, highlighting potential dialing strategies or lead quality issues.
- Conversion rate: Tracks the percentage of calls that lead to qualified leads, meetings, or opportunities, indicating the effectiveness of sales pitches and follow-up strategies.
- Average time to connect/conversion: Provides insights into the efficiency of call processes and identifies areas for improvement in call scripts, outreach timing, or lead scoring.
Overall Insights
- Sales pipeline health: Increased outbound calls and conversions can indicate a healthy pipeline and potential for future revenue.
- Sales rep performance: Tracking individual call metrics can identify top performers, highlight areas for improvement, and inform coaching initiatives.
- Campaign effectiveness: Analyzing call data for specific campaigns can reveal their success in reaching target audiences and generating leads.
Remember: Outbound Calls alone don’t tell the entire story. Combine it with other KPIs like conversion rates, average deal value, and sales cycle length for a more comprehensive picture.
percent Outbound Calls Contact Rate
Outbound Calls Contact Rate measures the effectiveness of reaching target individuals during outbound calls. It indicates the percentage of calls that connect with a live person, as opposed to encountering voicemails, answering machines, busy signals, or no answer at all.
The contact rate directly impacts other vital sales metrics like sales call conversion rate and overall productivity.
A high rate ensures reps spend more time engaging with potential customers, leading to increased sales opportunities.
Conversely, a low rate can lead to frustration for agents and hinder sales efforts.
M&S Can Help
Implementing any one of these KPIs can revolutionize the way you do business.
At M&S, we do this for our clients every day.
We have deep levels of expertise and we’ll use it to squeeze the last drop of ROI out of your org and transform your business.
We drive success by combining process and technology while offering a unique depth of expertise, understanding, and leadership in digital transformation solutions. Contact us today to learn more about how we can support your business.