Sales enablement is an essential strategy within every successful organization. Sales enablement is the process of ensuring that your sales team is armed with beneficial tools and resources to help them succeed at their job. But, the act of just building these sales enablement tools and sharing them with your sales team isn’t the end of the process. You need to know how well your sales enablement tools are performing so that you know how to improve or change your strategy. Not sure how you can measure that? Here are seven key sales enablement metrics that you should be tracking.
Overall Win / Loss Rate
Your win / loss rate is one of the most important sales enablement metrics you should be tracking. Your win / loss rate is the percentage of sales opportunities that are successfully won (or lost). This is important for you to understand where your sales team is succeeding and where they are struggling to close deals.
To calculate your win / loss rate, divide the number of won opportunities, by your total number of opportunities. Understanding your win / loss rate at an overall level, as well as for each sales rep, allows you to make changes to your overall strategy and equip your sales reps with the tools they need to increase their rates.
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Competitive Win / Loss Rate
While your overall win / loss rate considers all deals, you should measure your win / loss rate of competitive deals in particular. A competitive deal is one where you are going head-to-head with a competitor to win over a prospect. Oftentimes, this means they are evaluating both of your products or solutions, and need to be convinced your company is the best fit for them. Not only will this shed light on who you come up against in most deals, but it will also give insight as to whether or not your sales enablement materials are benefiting your sales team. Here are four questions to consider as you begin to understand your competitive win / loss rate.
Are you arming your sales team with battlecards or other tools? Are they working?
How can you improve your tools to help your sales team win more competitive deals?
Which companies are tougher competitors and need more sales enablement tools to beat?
Which types of competitors are you winning against more, and why?
Much like calculating your overall win / loss rate, use the same formula ( # of Won Opportunities / # of Total Opportunities), but only include deals where you went head-to-head with a competitor.
By calculating your competitive win / loss rates, you’ll be able to analyze where your team needs improvement, and create stronger sales enablement materials to increase your competitive win rates.
Sales Cycle Length
The sales cycle length is the amount of time between when someone becomes a lead, to when the deal is closed. Many variables contribute to the length of your sales cycle, such as selling to multiple people from one company, their budget and approval process, and their projected timeline for investing in your product. Your sales cycle is probably something you wish you could simplify and shorten. To calculate how long your sales cycle is, analyze the time between first contact between a prospect and your company, to the day that a deal is closed. Then, average all your deals together to figure out how long your average sales cycle lasts. To get started, you should explore the following questions:
How long is your typical sales cycle?
Why do some deals have shorter sales cycles? What about those with longer sales cycles?
What can you provide to your sales team to help them shorten the sales cycle, and in turn, close more deals and make more money?
Understanding the average length of your sales cycle and the key variables that play a role can help you figure out how you can help your sales team win more deals, faster. You can figure out which nurturing campaigns can help move along the sales process, which types of content help influence buying decisions, and which sales tactics result in shorter and more successful sales cycles.
Sales Rep Onboarding Time
When someone is adjusting to a new role, there is always a learning curve. Adjusting to the role, learning best-practices, and understanding the ins and outs of a company will take some time. Ramp-up time, or onboarding, can vary from company to company, and even person to person. The goal is to have a set time frame for a sales rep to be ramped and ready to get on the phone with prospects. Here are a few questions to explore in relation to sales rep onboarding time:
What is the average ramp-up time across all of your sales reps?
How has this changed over time? Is the timeframe increasing or decreasing?
What can you do to ensure a standard and effective ramp time?
By diving into your current state of sales rep ramp time, you can figure out how to make the process more efficient and effective. To improve your sales onboarding, start by setting a schedule for your new hire. Have key benchmarks to hit such as 30-day, 60-day, and 90-day goals so that your new hire will know what to expect during those time periods. During this time, you should be checking in with your new and existing sales reps to gauge how onboarding is going. You can use this data to create sales trainings that will not only benefit your new hires but could likely offer some strong advice to your existing sales team, too.
Sales productivity is the key metric used to measure the success of a sales professional. Sales productivity is a measure of how your sales representatives reach revenue goals during a certain time period. To measure sales productivity, you divide the total monthly sales revenue achieved by the number of sales employees. You can measure this for your whole team, or each rep individually to see if they are hitting the monthly quota you’ve set. You can then figure out where certain reps need to improve, and provide them with the proper training or sales enablement materials to help them hit their goals. If you find that some reps are falling below their monthly goals, your sales enablement team can provide them with sales trainings and sales scripts to help them when they are working a deal.
Lead to Customer Conversion Rate
Lead to customer conversion rate is the rate that helps you analyze the overall success of your sales and marketing team combined. To calculate your lead to customer conversion rate, take your total number of customers, divided by your total number of leads, and multiply it by 100, to get a percentage.
Once you understand the lead to customer conversion rate, you can understand where in the funnel your team needs the most assistance in converting. There may be room for marketing to create different materials to attract more quality leads, therefore giving sales reps stronger opportunities. There could also be room for the product marketing team to revamp sales enablement materials to help sales reps nurture their opportunities throughout the buying process.
Sales Enablement Tool Usage Rate
So, you’re creating a handful of tools for your sales team. How do you know if they’re actually being used? Sales enablement tool usage rate is a measure of what percentage of your sales team is using each resource and how deeply. To do this, track or even survey your sales team about which employees use which resources. For example, if you’re using a platform such as Salesforce to house your battlecards, monitor the number of views each battlecard receives, as well as how many sales reps are using them.
Plus, when you take all of these other key metrics into consideration, you will be able to infer if your sales reps are experiencing success or challenges because of or despite using your sales enablement tools. Tracking all seven of these sales enablement metrics will help you and your team get visibility into your sales enablement impact and support a more successful sales organization.