Sales reporting is one of the most important parts of any business. It helps you understand what’s working and what’s not, so you can improve your sales and marketing efforts.
If you’re like most business owners or sales managers, it’s easy to lose sight of the big picture. You’re busy running your business, making sure you’re hitting your goals, and staying on top of all the day-to-day things that come with managing a team. You probably don’t have the time to track all of your sales metrics and browse through sales reports from dozens of different sources. You might even miss valuable insights or simply not notice anomalies because it’s so time-consuming and complex!
But without the right data and metrics in place, you won’t be able to keep your finger on the pulse of your business. So, instead of combing through all the data and feeling overwhelmed by it, focus on these 5 key lead-to-sales metrics:
1. Lead conversion rate
The lead conversion rate tells you what percentage of people who see your ad or website end up taking the action that you’ve defined as success for that campaign—usually involves the providence of contact information and oftentimes through a form, a conversation over the phone or on social messaging platforms.
Lead Conversion Rate = (Number of Leads / Total Number of Visitors) x 100%
While there are many ways to measure the effectiveness of your marketing campaigns, such as the number of impressions generated, engagements or click-through rate, these don’t tell a whole story. Instead, you want to know what works and what doesn’t in generating good quality leads so that you can optimize your ad spend and get the biggest bang for your buck.
2. cost per lead
Cost per lead is the total cost of acquiring new leads divided by the number of leads generated in a particular campaign. For example, if you spend $10,000 on an ad and get 500 leads, then your cost per lead is $20.
Cost Per Lead = Total Cost of Acquisition / Number of Leads
As a general rule of thumb, you want to keep your cost per lead as low as possible without forgoing the quality of leads generated.
3. average deal value per marketing channel
The average deal value is another key sales metrics to examine. When you’re looking at your sales numbers, it’s easy to get caught up in the big deals and forget about the smaller ones. But it’s important to remember that those smaller deals can possibly add up to make a bigger impact than you might think.
Average Deal Value = Total Deal Value / Number of Deals
Which channels are bringing in most of your revenue? This will help you decide on which ones deserve more attention and which ones to slowly phrase out.
4. sales conversion rate
Sales conversion rate varies depending on the industry and the quality of the leads. However, a study by WordStream found that the average sales conversion rate is 2.35%. This means that for every 100 leads, only 2.35 of them will result in a sale.
Sales Conversion Rate = (Number of Leads Resulted in Sales / Total Number of Leads) x 100%
There are several things you can do to improve your sales conversion rate. First, make sure you are targeting the right people with your marketing efforts. Second, create a process for qualifying and nurturing leads, and pursue those that are most likely to convert first (a.k.a hot leads). Third, make it easy for prospects to buy from you by providing clear and sufficient information.
5. Lead-to-sales cycle time
Increasing your leads and sales count are often the goals of most marketing and sales efforts, but it’s also important to focus on lead-to-sales cycle time. You need to have an idea of how long it takes for a lead to turn into a sale so that you can scale your processes.
It’s one thing to have leads pouring in and another to know that you can close those leads at the same rate that you’re getting them. It’s good to track both of these metrics at the same time so you can figure out what needs work and where you need to make changes in order to keep up with demand.
If you are working on increasing your lead generation, make sure you’re also focused on decreasing sales cycle time. A great way to achieve this is by implementing an integrated omnichannel lead management system.
Go for data-driven sales!
If you know how to utilise your data well, you can let it guide your marketing efforts and scale your sales—report-driven sales or data-driven sales is what we call it!
So work on significantly improving your lead-to-sales metrics to inform your marketing and sales efforts. It’s a cycle—the more accurate your reporting is, the better informed you are to make decisions that can bring your business to the next level. Keep improving continuously!