We know that you will need to hire talent for this role in the future. Therefore, we have developed a comprehensive manual to make your job easier. This is the fourth post in the series.
Here are the posts related to the topic of Sales Manager:
What is a Sales Manager?
The 5 skills that a Sales Manager must have.
The 5 tools you should consider in a Sales Manager.
The 5 KPIs you should consider in a Sales Manager. (This post)
The 4 questions you should ask in your interview with a Sales Manager.
In this post, we will tell you some of the best KPIs to evaluate the performance of a Sales Manager.
1. Closing rate
In sales, a close refers to the number of sales opportunities that were converted into actual sales. The close rate compares the actual sales made by executives with the potential clients they contacted. This value is used to measure how realistic the sales department's objectives are and how efficient the team is.
It is calculated as follows:
A high customer conversion rate indicates an increase in the company's revenue. This indicates that the brand has an established reputation and word of mouth, thus achieving greater authority and better profitability.
The benefits of measuring this KPI are:
It indicates the effectiveness of the sales team in closing deals and transactions.
Allows the development and readjustment of sales strategies.
It serves as a guide to know how close or far the business objectives are.
Improve business process consistency.
Facilitates performance evaluation.
2. Sales cycle time
Sales cycle time is the calculation of the time between the first contact with the prospect and the closing of the sale. Depending on the industry, there is an ideal range for this indicator and the value of the company is compared to the value of the industry.
It is calculated as follows:
A short sales cycle time indicates that the sales department offers efficient service to customers. This leads to long-term business relationships and higher levels of customer satisfaction. In addition, a short sales cycle time can reduce operating costs, which represents savings for the company.
The benefits of measuring this KPI are:
Indicates the effectiveness of the sales process.
Allows the standardization of processes.
Improve customer satisfaction.
It offers a competitive advantage in the market.
Increase sales area productivity.
Do you need to recruit a
Sales Manager
?
Use our job description to attract your candidates.
Get to know them
Job Descriptions
3. ROI
ROI, also known as return on investment, is a figure that measures the success and return on an investment. This value indicates the economic result of a specific action in which the company invested. In sales, ROI is usually associated with the allocation of resources to marketing and the training of the sales team.
It is calculated as follows:
A positive ROI indicates that the investment has good results, since the income exceeds the investment made. While a negative ROI shows that the company is losing resources with that action or campaign.
Benefits of measuring this KPI:
Facilitates the prioritization of investments in projects.
Determines the efficiency of a campaign.
Shows the status of an investment in real time.
Sales budget optimization.
Evaluating the success of sales strategies.
Indicator of the conversion of prospects to customers.
Increase in lead attraction.
4. Customer Lifetime Value (CLV)
Customer Lifetime Value is a metric that indicates the total value of revenue generated by a customer throughout their business relationship with a company. This indicator is used to visualize chinese overseas asia phone number data which business relationships are more profitable than others and what is the best way to segment customers.
It is calculated as follows:
A high value shows that the customer is profitable for the company. That is, the income generated by the user is greater than the resources invested. While a low value indicates that customers are not satisfied with the service, the purchasing support and the overall experience.
Benefits of measuring this KPI:
Optimizing marketing campaigns.
Improved retention and loyalty.
Provides a framework for customer relationship management.
Improves the evaluation of sales area investments.
Facilitates performance evaluation.
5. Talent retention rate
Talent retention is all the actions that an organization carries out to create a respectful and fair work environment that motivates its employees to continue with the company. The talent retention rate is an indicator that measures how successful the established practices are over a given period of time.
It is calculated as follows:
A high retention rate indicates that the company is stable. This means that the sales manager's management is adequate, the objectives are realistic and the sales area is well managed. On the contrary, a low percentage represents economic losses for the company because there is no productivity rate and the area's objectives are not met.
Benefits of measuring this KPI:
Optimize productivity.
Provides data for business decision making.
There is continuity in the proposed operations and projects.
Reduce the costs of hiring and training new staff.
Improve company culture.
Evaluates the management of resources in the area.
Conclusion
Now you know the most important things about the Sales Manager position. Keep this in mind when you begin your next recruitment process. Remember, the important thing is to know the main characteristics of the position you are interested in.
Here are the posts related to the topic of Sales Manager:
What is a Sales Manager?
The 5 skills that a Sales Manager must have.
The 5 tools you should consider in a Sales Manager.
The 5 KPIs you should consider in a Sales Manager. (This post)
The 4 questions you should ask in your interview with a Sales Manager.
If you are looking to recruit your next Sales Manager 100% online, now is the best time to start a free pilot with Aira and update your recruiting tools. Schedule a call with us!
