Analyze and optimize your company's sales process using sales metrics to make accurate data-driven decisions.
From this article, you will learn:
What are sales indicators?
Sales indicators are used to monitor and analyze sales activities in your company. You can use them to analyze the sales process, the work of individual salespeople and entire teams.
Why you should monitor and analyze sales indicators
Efficiency of the sales process
They enable you to identify areas for improvement and make decisions based on hard data. They also enable you to optimize the process and test changes.
More effective sales team
They give you the opportunity to monitor team performance and compare the win rate of salespeople or entire teams, and help you set standards for work in those teams.
Specific sales goals
They enable you to set realistic individual and team goals and track progress against them.
More accurate forecasting and planning
They provide precise insights into your sales funnel and enable better revenue forecasting.
More efficient operations
You can use them to compare the value of sales according to their source and focus on steps that bring actual profit.
What sales metrics you can analyze in Livespace
To analyze the win rate of your sales process, go to Statistics -> Conversion Rate.
You will find indicators such as:
Sales process conversion rate
The conversion rate of the sales process is the ratio, expressed as a percentage, of winning deals to all closed sales deals (won and lost).
Average duration of sales deals
The average duration of a sales deal is the ratio of the duration of closed (won and lost) deals to their number. The duration of a deal takes into account the period of time from its creation to closing, i.e. winning or losing.
Average sales cycle
The average duration of your sales cycle is the ratio of the duration of won sales deals to their number. The duration of a winning sales deals takes into account the period from its creation to its winning.
Average sales value
The average sales value is the sum of the value of your winning sales deals divided by their number.
Conversion at each sales stage
This is the ratio, expressed as a percentage, of the deals that went to the next stage to all those that were at that stage.
How to filter data to analyze sales indicators
With filters, you can choose the exact range of data you want to analyze:
Users - you can choose whether you want to check metrics for the whole company, a selected team or a specific salesman. This allows you to compare them with the performance of other teams or salespeople
Process - if you have more than one process active, you can choose which one you want to analyze.
Deals counting method - you can decide whether you want to analyze only closed deals or both closed and open deals, and by what date they should be counted.
Date of adding a sales deal (without open opportunities) - allows you to analyze only closed deals, that is, won or lost.
Date of adding a sales deal - also takes into account open deals, according to the date they were added.
Closing date of sales deal - also takes into account open deals, according to the date they were closed, that is, won or lost.
Period analyzed - you can decide from which period you want to analyze the data.
How you can use sales indicator analysis in your company
You can use sales ratio analysis in your organization in many ways:
Compare the win rate of salespeople and entire sales teams.
Measuring the funnel conversion of the sales process and the average value of sales, you gain tremendous help in evaluating the conversion rate of salespeople and entire teams.
Thanks to that:you will precisely identify problems,
you will just as precisely identify good practices...
...which you can then translate into the actions of other salespeople/teams.
Compare sources of deals.
Using historical data, you can compare:from which source the deals generate the most revenue,
the win rate of actions on sales deals by their source - at each stage of the process.
Testing changes in the process.
You can test different variations of the sales process. For example, after you make a change in the way you qualify, you can test how the change affected the funnel conversion of the sales process at that stage. You will do this by comparing the conversion rate of the sales process at a given stage, for example, month to month.Setting goals.
Knowing the average win rate of the team's sales process, you can capture which salespeople are doing worse at completing sales. Based on this, you can set a performance improvement target for that salesman.
How to analyze steps in Livespace
This section is about the older version of sales activity analysis. You can find an article on the newer version here.
The important aspect of steps analysis is a summary showing the actions taken in sales deals won and lost. Based on this summary, you can quickly analyze which steps from the sales process are actually being performed and, in addition, whether they matter in terms of winning a sales deal.
Example:
In 86% of won sales deals, it is indicated that a meeting was held with the decision maker.
In 24% of lost sales deals, it was marked that a meeting was held with the decision maker.
Thus, it can be assumed that a meeting with a decision maker is important for winning sales deals.