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November 29, 2018
Leading Indicators of Sales Performance You Can’t Afford Not To Track
By: SBI
The average lifespan of a Revenue Leader is less than two-years. Why? Most of the time the Leader’s departure is related to poor revenue performance or inadequate return on Sales & Marketing dollars. In the following article, we will outline key leading indicators to help you quickly identify areas of improved revenue performance or cost-reduction, thereby improving your Sales & Marketing ROI.
Download the Activity – Based Sizing Template to view an example of Activity-based Sizing for a Lead Development Rep (LDR) and to use Input cells to enter you estimated number of prospects, activities, and capacity information.
Assessing Your Company’s Sales & Marketing Efficiency
Let’s start at the top, in order to quickly assess your company’s Sales & Marketing Efficiency, we compare Selling General & Administrative Expense (SG&A) to 3-Year compound annual growth rate (CAGR). While using SG&A is not an exact science, it is the most readily available metric, and can be found on any public company’s annual report. Using publicly available data will help you determine your position relative to your peer-group.
Here’s an example of what the final analysis may look like:
Each quadrant represents a unique opportunity:
Now we will introduce specific performance indicators, to help you identify opportunities to improve your SG&A efficiency.
Sometimes predictors of performance hide in plain sight. In Hockey, nearly 20% of Power Play opportunities result in a goal scored on the disadvantaged team. This is because any high-performing teams struggles when they are incomplete or down a player, which is why seller-fill-rate-percent is the number one indicator of team’s sales success.
Fill-Rates Should Be >97% and Consist of Following Components:
Additional Diagnostic Metrics:
It is often said, If you are measuring everything, then you are tracking nothing. Sales performance metrics are no different, with hundreds of available metrics, if often becomes difficult to see the forest through the trees. In order to identify and quickly remove issues preventing you from making your number, it is critical to define, calculate, and track metrics most relevant to your business.
Download the Activity – Based Sizing Template to view an example of Activity-based Sizing for a Lead Development Rep (LDR) and to use Input cells to enter you estimated number of prospects, activities, and capacity information.
Additional Resources
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