The traditional sales manager role is responsible for mentoring and coaching their team members through exercises such as; role-playing, critiquing sales calls, and individual meetings focused on improving instinct and interpersonal skills.
Today’s sales managers combine the traditional approach of sales management with a data driven approach. Data helps provide greater transparency between Sales Managers and Sales reps for several reasons:
- Data is objective so sales reps can’t argue with it or hide from it.
- Analyzing data allows managers to provide individual feedback as opposed to a lump sum of broad feedback.
- Analytics allow reps to focus their time on what’s working well and provide managers insight into areas of improvement.
Below is the first of three data driven exercises that can help improve the efforts and productivity of your sales team.
Lead Source Performance Should Be Important To Individual Sellers, Not Just the Marketing Team
Lead Source is an essential piece of data that marketing needs to measure in order to report on the success of their campaigns. It allows them to know which channels are performing better than others and where they should be investing their budget that will have the highest return on investment.
Typically the marketing team focuses on the performance of each Lead Source from first click to final conversion or sale. This allows for the opportunity to associate ROI to specific marketing investments, whether it be a targeted media buy, a drip campaign, event marketing etc. In addition to the marketing team, individual AE’s need to focus on lead source performance as well. In each individual meeting I have with an AE, I show them data on how they perform with each Lead Source. This lets the AE know if the leads they receive from a specific lead source, such as a trade show or from your website, gives them a better chance of winning the deal.
For each AE’s Lead Source, I look at some key pieces of information:
–Total opportunity amount closed won– how much total revenue was won.
–Win rate %– the likely percentage your AE has to win a deal.
–Average contract value– the average annual contract value in dollars.
–Average sales cycle– the average number of days it took for your AE to win a deal.
This helps me determine which AE’s perform better with specific lead sources.
After gathering this data for the entire team, key findings are revealed which help determine how to properly allocate the AE’s time. It provides insight into the following:
-Should certain AE’s go to more trade shows simply because they are better at closing trade show leads?
-It is possible that some AE’s should receive more website leads because they are more likely to close them with the highest average contract value?
-What about the AE’s that are not performing as well as other AE’s with their inbound phone calls? Should they compare their sales pitch with these specific leads to AE’s who do better?
There are numerous ways you can view the data and more efficiently allocate your team members time. The main goal of looking at Lead Source performance is to set your AE’s up for success by putting them in a position to close larger deals at a faster rate. Utilizing data, as a Sales Manager you can quickly make adjustments to AE’s sales efforts to optimize their performance for greater ROI.