What does sales success look like for your business? Metrics for measuring performance of your sales team and CRM success may include:
- Close Rate
- Net-New Revenue
- Length of Each Pipeline Stage
- Length of Sales Cycle
- Customer Lifetime Value (CLTV)
Learn more about each of these metrics here.
Use these CRM metrics as a starting point — but don’t feel pressured to use all of them. Choose the KPIs that measure the things you want to improve. Your KPIs should tie closely to the goals you set as part of your CRM strategy — why did you put this new CRM system in place originally? Make sure you’re measuring how well you’re meeting those original needs. (If you set SMART goals, you’re already halfway there.)
CRM reports
Once you know what you want to measure, you need to figure out how to measure it. Many CRMs offer built-in reporting that lets you track the same sales, marketing, and customer service metrics we just ran through.
Here are 4 popular CRM reports you can run to measure some of your chosen metrics:
Sales forecast report
A sales forecast report uses your lead data and sales trends to predict future revenue.
With ActiveCampaign, you can use win probability to take revenue prediction one step further. Win probability uses machine learning to analyze hundreds of factors, then predicts how likely you are to close a certain deal.
Win probability helps you figure out which actions lead to closed deals and which are unimportant.
Sales conversion report
This report tells you what percentage of leads convert within a certain date range — aka your close rate.
You can break this report down by lead source to see where these leads came from. Do more inbound leads close vs. outbound leads? What about leads from social media vs. organic search?
This report has the answers.
Sales performance report
A sales performance report gives you a leaderboard view of your sales team’s current and historical performance. These are the KPIs for this dashboard:
- Sales performance metrics, including total deal value, total number of deals, and average deal value
- Bar graphs depicting the deal value by stage and number of deals for each sales representative on your team
- A table of each deal in a pipeline with deal owner and deal value
Deals sorted by Deal Status (Open, Won, or Lost), Currency, or Pipeline
In ActiveCampaign’s CRM, this graph breaks down the total deal value and total number of deals by stage. This can help you ID bottlenecks and inefficiencies in your sales process.
Lost deals report
Analyzing your wins feels great, but don’t forget to learn from your losses, too. Finding out why someone said ‘no’ to your business can be even more important than knowing why someone else said ‘yes.’
A lost deals report shows you which deals your team didn’t close — and why. Use this report to:
- Find common reasons that leads fail to close
- Figure out how to handle those objections from other leads as they come down the pipeline
The (success) story is in the data
“Data, I think, is one of the most powerful mechanisms for telling stories. I take a huge pile of data and I try to get it to tell stories.” – Steven Levitt, Co-author of Freakonomics
Measuring the right metrics can be the difference between a success story and a cautionary tale. If you know how to measure your CRM success, you can keep track of how close you are to reaching your goals.
If you find yourself off-track, be willing to test different ways of using CRM to meet your business goals. Try something new, measure the results, rinse, and repeat. You got this! Want to learn more? Conact us today via the form below!