Sales People, Sales Process and Sales Metrics

I’d like to share a great post by Greg Deming at Peak Sales Performance (listed in my Blogroll as well) which takes you through 5 important points on the role of sales professionals, an 8 step sales cycle, metrics for each stage of the sales cycle, some recruiting metrics, and how to use the metrics to create a “Sales Excellence Template“.  Given the title, it makes sense to include it here on my blog!  

http://bit.ly/9G84Jp

The “sales excellence template” provides the best framework for building sales process metrics I have seen.  It truly is as simple as a manager inputing their annual goal, and working backwards to identify the metrics they need for each sales person on their team.  Here’s a back-of-the-envelope example:

Annual Goal    =$12M

“Over Assignment” Buffer     =$3M

# of Sales Excs   =8

Annual Goal/Exec   =$1.875

Average Sale     =$100k

Annual Deals/Exec   =19

The Sales Exec’s Annual pipeline would look like this:

119 First Presentations (10/month) 

 95  Needs Analysis  (8/month)

 62  Formal Presentations  (5+/month)

 53   Decision Pendings   (4+/month)

 32  Negotiations  (2+/month)

  19   Implementations  (2/month)

By tracking these #s individually and collectively, a manager has a road-map to measure performance.  They also can be keenly aware at any given moment as to the status of their business with visibility into problem areas where they can coach, motivate, mentor or initiate change.

One of my earlier posts discussed the importance of looking at the front end of the pipeline with the same energy as reviewing what’s closing.  By employing Greg’s template, that process is much simpler.

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