The Ingredients of a High-Performance Sales Culture
METRICS and SCORECARDS
As we have shared previously, we are doing a series of posts of what we have observed superior sales organizations do to shape a High-Performance Sales Culture. Each post will feature one ingredient, followed by a few questions to challenge your thinking.
The seventh ingredient of a High-Performance Sales Culture is Metrics and Scorecards.
“People work on those tasks for which they are being measured. Instead of just measuring an individual’s sales revenues, other measurements such as customer experience, skill levels, profitability, and team engagement are required.”
- James W. Cortada
Because selling organizations are responsible for generating revenue, they tend to narrow in exclusively on that one measure. While profitable revenue remains the primary yardstick, high-performing sales teams also keep score in other areas and have a data-driven mindset.
There is no end to what can be measured, certainly. Some organizations go overboard and invest significant time collecting data, but not the same amount of time determining what to do with the data. And yet, if we seek to be business advisors, it would seem that we need to commit to managing with facts. Like professional sports teams, superior sales teams monitor performance by establishing standards and leading indicators against which to assess their progress.
The best sales teams:
- Recognize and see measurement as their ammunition to drive success and customer value.
- Keep score. They select those metrics that align to the goals they wish to achieve.
- Determine how the data is to be collected and how it will be used to manage their day-to-day activity.
Generally, there are three categories of metrics sales forces use, with some examples below:
Financial / Results
- Sales by Customer Segment
- Sales by Product Type
- Sales by Geography
- Sales to New vs. Existing Customers
- Forecast vs. Actual Results
- Expenses - Actual vs. Budget
- Average Revenue per Customer
- Salesperson Rankings in Company
- # of Opportunities in the pipeline
- # of New Account Calls
- # of Calls by Segment
- # of Calls by Account Size
- # of Proposals Submitted
- # of Competitive Wins
Voice of the Customer
- Net Promoter Score
- Customer Retention
- Customer Satisfaction
- Customer Experience Ratings
- Time required to address and solve specific issues
- # of testimonials received
Questions to Consider:
- What 5-7 measures or scorecards do you use to track the effectiveness of the sales force, e.g., # salespeople achieving quota, product penetration, lead to sales ratios, sales call activity, # of new customers, etc.
- What is the % turnover of salespeople? What is its financial impact?
- What approach do you use to measure customer experience? How do you communicate that information across the organization?
Next Up: Learning and Skills Mastery