Driving revenue with sales metrics is an iterative process.
Perhaps new initiatives require a shift in your process. And even if your plan of action hasn’t changed, the market, economy or competitors can disrupt your go-to-market strategy.
Never stop asking yourself, “Are these the right metrics?” When you’re ready for a full evaluation, use these three steps.
3 steps to revise sales metrics
1. Review sales metric performance.
When you set up an activity-based selling approach, your organization operates at a
new normal. Sales reps understand the metrics they’re managed around. Sales leaders know what activities need to be measured and coached. This leads to an increase in the activities that matter to closing business, but then performance plateaus. Those increased activity levels become the common practice.
Examine how your original sales metrics worked out. Did reps perform well against their sales metric goals this year? How did those metrics help you achieve company initiatives? Take both into consideration during this exercise.
2. Interview sales reps and managers.
Just like when you brainstormed sales metrics for the first time, include your team. Interview reps to understand their experience on the front lines. Ask questions like:
- Do you think these metrics are right for your role?
- What was helpful about these metrics?
- What’s missing from these metrics?
Meet with sales managers to get their take. A few things ask:
- Were you able to manage performance with these metrics?
- What’s changed about our business strategy since we created these metrics?
- What activities should we focus on to align with our updated goals?
This exercise produces a variety of perspectives for you to consider. In addition, team members feel included when you ask for their feedback about the process. This generates buy-in.
3. Consider changes in business strategy.
Take everything you’ve collected thus far and think of it in terms of your new initiatives. If you want to increase your average deal size, what’s your overall sales plan over the next month, quarter or year? What activities will be most important to achieve that goal?
You’ll probably want to make one of your metrics something like having VP-level meetings, discussing ROI or creating account plans. The objective is to determine what you want to change next year to hit goals and how you can break that down into day-to-day activity.
After completing those three steps, use the information you’ve gathered to assess the state of your sales metrics. Then make updates or changes accordingly.
Use this exercise any time your major company initiatives or sales strategy changes. A best practice is to re-evaluate sales metrics at least once a year.