WE ARE PROGRAMMED TO BE MOTIVATED BY PROGRESS – WHEN WE MAKE PROGRESS WE ARE MOTIVATED TO PROGRESS FURTHER …HOW DO YOU KNOW WHEN YOUR SALES TEAM MAKES PROGRESS?
Surprisingly few people monitor their progress in a formal manner, fortunately for sales people, heaps of people are monitoring their progress on a minute my minute basis…the question is: are they monitoring the right things?
Of course, revenue and profit are the main indicators of progress that are used my many organisations. In some firms they are the only indicators that are used consistently
There are other metrics that are less visible but as important as sales revenue and profit. Some of these metrics are lead and lag indicators to help sales managers predict what will happen next month, the month after that and even this time next quarter or next year.
Some metrics can be used to look at immediate training requirements, effectiveness of marketing programs, using basic activity based costing some metrics can indicate a future dip or increase in revenues, highlight potential new markets, uncover sales blocks in the pipeline and barriers to growth.
The skill of a good sales metric scheme is to select what to manage, why the metrics are worth measuring and what to do with the information, and how it will be communicated to the team so has to alert sensibilities and improve performance.
Good and robust sales measurement is vital. It’s your sales dashboard, your sales control panel…after all, what gets measured gets attention.