Essential Metrics in Sales; and how they affect the Sales Recruitment Process

jimmyk Blog

essential-metrics-sales-how-affect-sales-recruitmentFor the most part, almost every aspect of the sales industry has to do with numbers. For this reason, various sales metrics are used to effectively measure the productivity of salespeople, teams and companies. The term sales metrics is used to describe the variables that determine and demonstrate how salespeople attain their sales projections. This is why these metrics are discussed during sales recruitment, as they tie in very closely with the candidate’s expertise in his/ her profession.

Examples of essential metrics include:

  • How many hours does the salesperson need in order to generate a qualified lead?
  • How many leads translate into actual sales or contracts?
  • How much money does it cost the company to make a sale?
  • How long is the sales cycle?

During the recruitment process, candidates stand out from the pack when they have a ready grasp of their current or most recent sales metrics.

Why it is important for Salespeople to know their Metrics

Knowledge of one’s sales metrics ought to be at the individual’s fingertips. This is because metrics offer a tangible means of predicting sales activities; which in turn makes it possible for the salesperson to manage themselves and increase their productivity. Effective professionals therefore keep track of their sales metrics in order to monitor how well they are doing, which in turn enables them to improve their performance. It is only when one knows where they are, that they are able to know where they are going, how they are going to get there and how long it is going to take.

Sales metrics are therefore not only beneficial for the present, but they also affect future performance. For this reason, sales candidates who do not demonstrate knowledge of their sales metrics and the implications of the same, are largely considered unfocused.

How Knowledge of Sales Metrics gives an edge during Sales Recruitment

Here is an example of how a sales candidate can apply their knowledge of sales metrics.

By tracking his/ her sales metrics, a salesperson may be able to tell that every month, he/ she is able to convert on average, 10 percent of cold calls into clients. With this information, the individual is able to work backward and calculate how many cold calls he/ she would then need to make in order to meet their sales target. If this number is ridiculously high, the salesperson has the option of increasing the percentage of the deals that they close.

Another important sales metric is the amount of time that elapses between the time that the salesperson first contacts their prospective client, to the time that the deal is closed. Tracking this duration enables the salesperson to know whether, when and where he/ she is spending too much time unnecessarily. Time is a valuable resource in sales, and it is therefore necessary to utilize it fruitfully. If this duration of time is too long, the professional is able to either revise their strategy, or maintain the same strategy while slightly increasing the frequency of their contact with the prospective client.

 

jimmykEssential Metrics in Sales; and how they affect the Sales Recruitment Process