There are hundreds or even thousands of resources out there that promise to make your sales reps better, faster, and stronger. Ultimately, they consists of tips and tricks, call scripts, subject line suggestions, and more. We know that a lot of you read this article and share it with your teams.
But when it’s all said and done, how do you determine if your sales reps have actually improved?
“Good performance” goes beyond quota fulfillment (though it’s surely important). It’s a mix of factors, and you’ll have to consider multiple data points and more substantive assessments to evaluate whether your salespeople are performing well or not.
We’ve tailored down the most important factors you should use to evaluate sales performance quantitatively.
1) Company-wide quota fulfillment
Quota is a quick, easy and dirty way to evaluate high-level sales performers. While you’ll need to run further deeper to truly understand how your team is doing, company-wide fulfillment is a good way to tell whether you’re setting quota too low or too high.
Only about one-third of sales person can hit the quota, so use that as a point mark. You should strive for a higher level of fulfillment, but if a huge part of your sales team consistently hits quota with flying colors, it may be time to tune in raising the quota.
2) Historical quota fulfillment per rep
Of course, quota fulfillment can’t be surely understood by looking at one month or quota in isolation. There are many reasons a salesperson would miss his or her quota — seasonality in your business, a sales contest that motivated reps to blow out their pipelines one month, or even personal reasons. But these factors aren’t anything that’s truly the cause of overall performance.
Alternatively, review a salesperson’s last six or nine months to complete the picture, and look out for upward or downward trends. One bad month shouldn’t affect this trailing quota, but you’ll be able to pinpoint the trends if you look at the historical data.
3) Average sales cycle scale
Another useful metric that shows a salesperson’s strengths or weaknesses is their average sales cycle scale. Compare their tenure ship to your company-wide average. Do they have a significantly longer or shorter sales cycle? Find generic among the stragglers and the top performers.
4) Set new opportunities
Find how many net new opportunities your sales reps are creating against their prospecting activity accomplishes two things.
First, it’s easy to tell whether they’re prospecting enough. If they’re consistently missing their quota and their number of net new opportunities is relatively low, you’ve probably hitted the problem. But if they’re generating enough new opportunities and failing to close them, you’ll have to think even deeper.
Second, it shows whether they’re prospecting well. If your reps are producing enough opportunities to hit their quota based your company’s typical opportunity-to-close rate, yet are still hitting the wrong number, there are two possible causes. Either they’re recording unqualified opportunities, or they’re losing control of the sales process somewhere along the line.