There are four key performance indicators I recommend everyone keep a weekly focus on. If you are a manager who does weekly individual focus meetings with your AE's or if you are a manager managing managers, these four things will help you keep the focus of the individual and the team on things that are crucial in moving the needle.
These four essential metrics will tell you if you are on track for success.
1. Number of Quality Appointments Each Week
When I say quality appointments, I am referring to appointments that are scheduled in advance, are with a decision maker, and the purpose of the appointment is to either discover a prospect's needs or to present (recommend) a solution.
2. Number of Recommendations Presented Each Week
We used to call this a "proposal," and I encourage you to use the word "recommendation" instead. Recommendations reinforce that you are the expert and that you are giving the client or prospect your expert recommendation based on the needs you have uncovered.
It's important to know how many recommendations are going out and how much each one is asking for. They need to meet your quality standards. The closest thing to a tangible product that a sales department has is the recommendations that are presented.
3. Number and Orders Booked
Obviously, it’s important to track the business booked since it leads to revenue. Salespeople need to see that while we are looking at the process, we are also measuring the outcome of that process - which is the business written.
4. Revenue Pending for Less than 30 Days
Both salespeople and sales managers can sometimes have a false sense of pending business. It is best to train salespeople to put the most stock in the business pending that is less than 30 days old. The percentage of pending that closes after 30 days is slim compared to the new pending. When projecting revenue, the real-world approach is to simply focus on your current pending. If the older stuff comes through, consider it a bonus.
As a manager, you have a lot of responsibilities. You have new initiatives, HR issues, daily successes, and challenges. Don’t let the daily minutia get in the way of setting up and holding yourself and other to tracking these four key performance metrics.
By making it part of your weekly sales process, you will be able to see any performance challenges early on and can address them quickly and when the metrics are being met you will be able to sleep well at night knowing the team is performing at the standard necessary to meet or exceed your goals.
*Editor's Note: This blog has been updated since its original post date.