Tracking your organization’s sales pipeline metrics is important, but understanding how to optimize them is just as crucial to building more leads and continuing to move prospects through the sales funnel, which results in closing deals.
Monitoring these metrics lets you evaluate your team’s performance, and lends insight into specifics within the organization that need to be adjusted and optimized to ensure a healthy sales pipeline.
Tracking Qualified Leads
Good leads equate to closed deals. Evaluate your inbound and outbound leads to assess pool size and ensure your sales team has enough to prospect and close necessary deals to grow your business.
If your assessment results in a small number of qualified leads, this will require your immediate attention. Solutions may include investing in increased marketing strategies to bring in more leads, instructing your team on ways to maintain an updated contacts list, and using prospecting tools to receive real-time alerts that identify prospects’ role changes.
Services exist that analyze criteria, including location and engagement, that may shorten your list to laser focus on more promising prospects. Analyzing the quality of your leads will ensure time and energy are exerted into more fruitful efforts.
Conversion Rate of MQL to SQL
Are you able to identify how many of your marketing qualified leads become sales qualified leads? Increased drop-offs indicate sales and marketing teams may be working from different playbooks.
This signals an important measure to correct course by strategizing ways for sales and marketing teams to become better aligned. A simple solution may entail cross-department meetings involving both teams. Working in tandem to identify strategies and goals as a single entity can make it easier for teams to quickly become familiar with a shared goal.
Your Organization’s Win Rate
Simply stated, a win rate is a measure of the number of qualified leads that turn into customers. Measuring changes can be done by tracking this number over periods of time, such as from one quarter to another.
If you notice a drop in win rate, redirect focus to improve training, streamline sales processes, and use more reliable sales enablement tools. If in your evaluation you observe closing at a high rate, but total sales not aligning to where you anticipated they could be, consider looking at creating marketing solutions.
If you’re able to determine a marketing problem, rather than a sales problem, it could be time to consider a more tailored marketing approach to help bring in more leads.
Evaluating the Sales Cycle
A sales cycle identifies how long it takes a team to close a deal. Knowing the length of a sales cycle helps find ways to address deals that have become stagnant within your organization’s pipeline.
Focus on these deals that aren’t moving and try to assess what went wrong, and how to find solutions for having them progress quicker down the pipeline. Slow sales cycles may benefit from an automated process to follow up with your lead. A stagnant prospect may have resulted from something as simple as a missed opportunity to reach out.
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