5 Metrics That Will Help You Pump-up Your Sales Analytics
Marketing and sales analytics play a major role in unlocking commercially relevant insights, improve brand perception, and increase revenue and profitability for your company. That’s not all, having the right analytics and sales metric in place will also help you uncover new markets, new audience niches, and areas of development for the future. So, what exactly is sales analytics? In simple terms, sales analytics is the practice of generating insights from sales data, trends, and sales metrics to set targets and forecast future sales performance. In today’s fast-paced environment, the sales team has a wide range of activities to operate and focus on. A well-defined sales analytics strategy provides your team with focus and clarity. Monitoring sales analytics in the form of KPI metrics helps increase your performance, optimize sales activities, and improve accountability. In order to establish a successful analytics program, companies must decide which sales metrics will inspire action and equip their team with focus. Here are some of the top sales metrics that you must consider tracking:
Sell through rate
Sell through rate measures the number of goods that have been sold in a month against the amount of inventory that has been shipped to you by the manufacturer. This is an important retail sales metrics as it is a great way to determine the efficiency of your supply chain. Companies must always ensure that they have a high sell-through rate, and failing to do that could cost them more for the shelf-space occupied by the products. Keeping a track of the sell-through metrics is an important way for companies to determine which products are fast-movers and which ones are unpopular and need to be revamped or discarded.
This sales metrics measures the impact of a new product on the sales revenue of existing products. If you undertake a keen observation of your sales analytics, it often shows that as your business releases new products, attention and demand for existing products tend to decrease. One of the main aims of most organizations is to constantly innovate themselves and provide new offerings to their customers. However, new launches aren’t always risk-free. This can be particularly in cases where new and existing products have different, or even competing value propositions.
Sales target is one of the key metrics used in sales analytics. This KPI measures current sales revenue and compares that to a target or past performance. Measuring sales performance against the targets is a core tenet of any sales management strategy and is instrumental in creating a data-driven culture. Companies must ensure that the sales target is visible to the entire team. This will help the team easily identify gaps in the current performance compared to the target.
Lead conversion rate
This metric measures the efficiency of your sales team at converting leads into new customers. Lead conversion metrics play a vital role in aligning the sales and marketing teams. This is because both these teams will use these metrics to determine the quality of the leads. The process for generating leads is the responsibility of the marketing team. Once marketing qualifies those leads, it’s the responsibility of sales to convert those leads into paying customers.
Quote to close
Quote to close is an excellent metric for sales analytics as it depicts how effective your team is at closing a deal. This sales metrics measures the number of prospects engaged by your sales team compared to the number of deals closed. This conversion ratio determines the effectiveness of the company’s sales funnel.