If you manage a sales team, you know that sales volume is an important measure of a salesperson’s success. But you also probably realize that other metrics are useful, too.
To keep your sales force productive over the long term, pay attention to these additional areas:
• Sales volume vs. units sold. One salesperson closes a single deal worth $1 million. Another lands 10 sales worth $100,000 each. Which sales pro is more valuable to your organization? Don’t overlook salespeople who produce consistent numbers in favor of those who score an occasional high-ticket shot.
• Profitability. Generating revenue is good, but if that doesn’t translate into profits, your efforts are ultimately futile. Make sure your sales force is pursuing deals that contribute to the bottom line, not just looking for break-even sales.
• Productivity and efficiency. A salesperson who spends 12 hours a day, 7 days a week to make his or her numbers probably isn’t managing his or her time as effectively as possible. Beware of honoring Sally for all her extra hours if Jill brings in the same sales figures in less time.
• Customer service. Retaining current customers is vital to most companies. It requires time that might be spent chasing new business, though. Do you reward salespeople for keeping today’s customers satisfied, or penalize them for ignoring existing customers in favor of new ones?