Sales success depends on much more than making the actual sale. As with many things in life (and sales), it directly relates to the concept of quality of sales, not quantity. It’s extremely important to understand and measure sales quality — things like how well your sales team performed and how well they met the needs of their clients — if you want to achieve sales success.
This article will talk more about how to measure quality of sales and why it’s vital to your business by taking into account:
- Product quality management system
- Handy tools
- Customer feedback
What is quality of sales?
Sales quality directly relates to the performance of the sales team. It refers to how well they close deals (the close ratio), the percentage of revenue coming from new vs. existing clients, and how many customers were lost/gained. According to Videoform, quality of sales is: “is the measurement of how well a salesperson can close deals & upsell”
Why care about sales quality?
Quality of sales is all about efficiency and output. It has a direct impact on your business, as it builds trust with customers and produces a higher ROI. It impacts both the bottom line and financial side of the business but also greatly affects your company’s aesthetics and how potential prospects, customers, and the general public view your brand.
How to measure the quality of sales
Use these tips and tricks to track and analyze your team’s sales performance:
1. Set up a product quality management system and strategy
Start by creating a plan for the product itself. Then, pull together a set of guiding business practices that helps you best sell your product and analyze the sales funnel. With a plan in place, quality will come naturally.
2. Set the right KPIs
Choosing the right key performance indicators for your brand directly leads to quality of sales. From monthly sales growth to average sales cycle length to sales by contact method, tracking the metrics that matter most can have a real effect on sales quality.
3. Track performance using handy tools
It’s tough to track performance without the right tools. Things like using a reliable CRM system and useful tools that interact with it, like Surfe, can make all the difference. A CRM can help you best store and analyze your data and sales pipeline, while Surfe links your CRM with LinkedIn to ensure you have access to all this data at your fingertips.
4. Get (and listen to) customer feedback
Make sure to not only obtain but also carefully listen to customer feedback. Having a better understanding of the customer experience can really help improve quality of sales. It can help you improve negative customer experiences and continue on the right path when it comes to positive customer experiences.
Here are some example quality of sales metrics to get you started
Not exactly sure where to begin? Here are some of the metrics you should measure when it comes to sales quality:
- Percentage of revenue generated from current customers vs. new ones
- The average number of sales calls per opportunity and the length of call
- Closed won/lost ratio
- Cost per customer acquisition
- Conversion rates
- Upsold accounts
- Renewals and repeated customers
- Turnover per salesperson
- Customer satisfaction rate (via surveys)
Don’t forget about quality of sales
Establishing key metrics in order to measure quality of sales is essential for the health and success of your business.
And you should go beyond just analyzing the data. Take your results and figure out how to continue doing what’s working and how to change what’s not in order to continually improve the quality of your sales, maintain loyal customers, and increase your bottom line.