Measuring and evaluating metrics is a crucial part of business operations in any sales-related enterprise, but it is especially difficult for B2B sales teams. Marketing to other businesses is markedly different from marketing directly to consumers. In B2B trading, the risks involved tend to be more considerable and finalizing the transaction is likely to be a more protracted procedure.
It is essential to identify and monitor applicable measurements for your B2B selling company in order to ensure success.
B2B sales teams that achieve excellent results regularly monitor the well-being of their business. Keeping track of and taking steps to raise vital measurements can help your sales staff become even more successful and productive.
Let’s take a look at the sales figures your B2B company should be monitoring.
Why do businesses need sales funnels?
Businesses must examine the course their clients undertake – from being conscious of the product to make a purchase, the moves of customers will aid businesses to decide if their methods are working or if they require further enhancement. A company may be creating important written material, but they are unable to move leads through the sales pipe. In this situation, the organization may want to alter the way they present material – altering to video material instead of written could possibly assist the business to inform their customers more successfully.
B2B Sales Metrics to Track
1. B2B sales key performance indicators (KPIs)
It is necessary to comprehend the effect that the actions of your business-to-business sales staff have on the efficiency, health, and potential expansion of the organization as a whole. Here are a few KPIs to track every month:
- Total sales represent the total amount of money generated from sales for a given period of time (often totaled monthly).
- Sales by product or product type indicate how many sales were generated from each product or product type. From the total sales amount listed above, segment how much revenue was generated from each product or product type.
- Sales from new business track how much first-time customers contributed to total sales. Use this formula to calculate the sales from new business percentage: (Sales from New Customers / Total Sales) * 100
- Net profit margin determines how much your company will profit during this time period. Use this formula to find net profit margin: (Net Income / Net Sales) * 100
- Net Promoter Score (NPS) helps your company quantify customer reviews. To begin calculating this metric, ask customers how likely they are to recommend your company to a colleague or friend on a scale of 0 to 10. Once you have that data from a set of customers, categorize those who answered 9 or 10 as “promoters,” those who answer 7 or 8 as “passives,” and those who answer 0 to 6 as “detractors.” Tally up the total percentages of each response category, then calculate the net promoter score using the following formula: NPS = (Percentage of Promoters) – (Percentage of Detractors)
If you don’t have experience with Customer Relationship Management (CRM) or don’t have experience tracking Key Performance Indicators (KPIs), this template can assist you in getting started with monitoring metrics in a single location.
2. Sales productivity metrics
The longer you have, the more networking you can do. Estimating the efficiency of your sales representatives will assist you in working out how much time it will take to attain monetary objectives. In essence, reaching sales objectives swiftly will result in greater sales efficiency for your company.
By grasping this information, your group can identify faults in your sales approaches and work out ways to grow them. Productivity metrics can include:
- Percentage of time spent demoing – This tracks how much time reps spend demonstrating products. Calculate this value using the following formula: (Number of Hours Spent Demoing / Total Number of Hours Worked) *100
- Percentage of time spent performing data entry – This measures how much time reps spend doing manual data entry tasks. Calculate this value using the following formula: (Number of Data Entry Hours / Total Number of Hours Worked) * 100
- Percentage of time spent on the phone – This shows how much time reps spend engaging with prospects in calls to move their deals forward. Calculate this value using the following formula: (Number of Hours Spent on Phone / Total Number of Hours Worked) * 100
- The number of sales tools used, and the average amount of time spent using each tool – This number can help your sales team streamline the number of tools used, and the amount of time spent using tools. Have sales reps tally how many tools they use on average, and use a time-tracking tool to help report how much time they spend using each tool on any given day or week.
- Percentage of closed-won deals – This measures how many closed deals resulted in a sale over a specific period of time. To find the percentage of closed-won deals, use the following formula: (Number of Closed-Won Deals / Number of Total Closed Deals Won + Lost) * 100
3. New leads by source
What knowledge do you possess about your new prospects? Do you know where new leads are coming from? By being aware of the number of opportunities entering your sales funnel and keeping track of their origin, you are better able to aim future propositions at dependable sources.
If, after monitoring sources of leads for an extended period, it is determined that more leads are coming from the web contact form than from phone calls, sales reps can shift their attention to replying to web inquiries rather than making phone calls.
4. Estimated revenue by lead source
Start keeping track of where your leads come from, and you’ll be able to estimate how much of your business’s income is made up of leads from key resources.
For instance, if your sale staff earns $20,000 in a month and $5,000 of that is from individuals interested because of social networking, it shows that social networking makes up 25 percent of your sales.
Examining past records regarding the origin of leads can give your company a better idea of the revenue that can be expected from each source. This will also demonstrate that each lead source is lucrative, providing your sales staff with information to assist them in locating beneficial sources to find potential customers.
5. Average lead response time
After a prospective customer has reached out, how quickly does someone from your company respond? It is advisable for representatives to respond to leads as soon as they can, ideally within a few minutes. It has been determined by a common Harvard Business Review research study that most firms react to inquiries within an average of forty-two hours if a response is even supplied at all.
Every second counts in the sales industry, with a rapid response to a prospect increasing the likelihood of the lead remaining of high quality. By keeping an eye on the normal amount of time it takes for sales reps to react to potential customers, you can gain a better understanding of how to improve.
If you’re looking to decrease your average lead response time, here are a few strategies to try:
- Social Listening – Stay on top of inquiries that come in through social media and respond quickly to engage with interested leads.
- Live Chat – If a lead comes to your website, fills out a contact form, then goes on with their day, you could be losing precious time to engage with them. Having a live chat feature on your website that allows reps to talk to leads in real-time can keep leads more engaged from the beginning.
- Email Workflows – When leads do engage via email, it’s important their inquiries don’t get lost in the shuffle. Setting up email automation that can get lead requests routed to the right person and addressed quickly is a more effective option than simply having requests go to a shared mailbox.
6. Average lead response time
Calculating how long it takes for your company to get in touch with a potential customer or lead is known as the organization’s lead response time. By averaging the time it takes, companies can work out rapidly if they have responded to leads fast enough to hold onto them. If the response rate is too slow, businesses are likely to miss out on potential customers.
7. Pipeline creation by month
Throughout this article, it has been demonstrated that the process of sales involves several distinct stages. It goes through the steps of identifying potential customers, evaluating the prospects, providing offers, and ultimately culminating with a successful sale. Once a company has created its funnel or pipeline process, is it acceptable to take a break and not do any further work?
No! The hard part starts now. Businesses usually need to measure their pipeline output every month in order to expand. Using simple measuring instruments, businesses can get a review of their sales to funnel once a month to find out how it is progressing in all the different areas, collectively and separately. This assists businesses in assessing which component requires more work, thus allowing them to develop their company accordingly.
8. Marketing qualified leads to sales qualified leads conversion rate
A different significant factor of lead generation is transforming the Marketing Qualified Lead (MQL) into Sales Qualified Lead (SQL). When a potential customer has made it to the marketing-qualified stage, it indicates that their curiosity has been aroused and they are keen to learn more about what a business is offering.
The effectiveness of the relationship between a company’s marketing and sales teams helps the organization move their potential customers who have responded to their marketing efforts through the process to becoming paying customers.
What are the chances that a marketing lead will become a sales lead? This is referred to as the conversion rate.
Generally, it is considered a positive performance if a business’s conversion rate is between 13-24%.
9. Opportunities by lead source
Although they appear alike, leads and opportunities have a slight distinction in terms of being particular. Interacting with a prospect, meeting someone, or networking could lead to the possibility of unqualified leads becoming real opportunities. In the end, these might be transformed into actual leads.
Companies should evaluate if the source of their leads is bringing them prospects and if it is beneficial for the company. If not, then maybe now is the right time to switch up the initial source.
10. Closed won opportunities by month
In order to gain an understanding of how many possibilities turn into leads over the course of a month, it is necessary to monitor the information displayed on a sales tracking chart. These measurements enable companies to determine how often they win deals based on the number of opportunities they convert and consequently assess the effectiveness of transforming leads into opportunities.
11. Pipeline velocity
In other words, the rate at which a prospective customer goes through the sales process to eventually reach the purchase stage is referred to as the pipeline velocity.
This is utilized to discover if there are any impediments in the sales process. If the transmission rate through the pipeline is faster, it will result in a more responsive performance.
It can take a lot of time to complete a sale, which means the company should investigate its pipeline more carefully.
Pipeline speed is an excellent way to measure the progress of prospective customers.
12. Customer acquisition cost
Calculating an appropriate outlay required to gain a consumer is crucial for companies to evaluate their total marketing expenditure and endeavors.
By breaking down the customers according to the total sales and overhead costs, businesses can evaluate and measure whether they are making sufficient income from their customer base.
It was elucidated earlier that a desirable customer acquisition cost is usually a 3:1 ratio.
In other words, if an organization invests 3 lakh rupees in sales and marketing activities and obtains 50 new customers, then it costs 6000 rupees per customer acquisition.
This allows a company to ascertain precisely if it needs to raise or lower its expense per consumer.
Conclusion
The handling of the sales process for a business is one of the fundamental facets of marketing.
It is essential for companies to monitor their KPIs and sales data constantly in order to make sure the customer experience is as smooth and efficient as possible. Quantitative analysis is the ally of any business, allowing them to measure the success of their strategies.
Gain an edge over the competition and up your game to convert more leads by utilizing Hippo Video for your business. The engaging platform will help you attract more clients and increase your sales, simply by displaying content and information.
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