William Hewlett, Co-Founder of Hewlett-Packard often said: "What gets measured gets done." You can increase Sales Productivity if you focus on Tracking, Reporting and Reviewing these Metrics on a regular basis.
Five Key Sales & Marketing Metrics
- Closed Sales Ratio
- Qualified Lead Ratio
- Pre-Qualified Lead Ratio
- Marketing Response Ratio
- Sales Cycle Ratio
Here are the Five Key Sales and Marketing Metrics and their descriptions:
1. Close Ratio
Measures the number of Sales Orders Closed divided by the number of Total Sales Deals that were listed in a Sales Forecast.
Example: It takes 5 Qualified Leads to close 1 Sales Order. This would be a 20% Close Ratio.
2. Qualified Lead Ratio
Measures the number of Qualified Leads divided by the number of Pre-Qualified Leads in the Sales Funnel (or Sales Pipeline).
Example: It takes 10 Pre-Qualified Leads to get 4 Qualified Leads. This would be a 40% Qualified Lead Ratio.
3. Pre-Qualified Lead Ratio
Measures the number of Pre-Qualified Leads divided by the Total Suspects that responded to all marketing events.
Example: It takes 100 Suspects to get 30 Pre-Qualified Leads. This would be a 30% Pre-Qualified Lead Ratio.
4. Marketing Response Ratio
Measures the number of Suspects divided by the total number of contacts sent marketing communications documents.
Example: It takes 1000 names on list to get 20 Suspects to respond. This would be a 2% Marketing Response Rate.
5. Sales Cycle Ratio
Measures the Date a Suspect has first Contact with a company minus the Date an Sales Order is Closed/Booked by the company.
Example: It takes an average of 6 months for a new Suspect to become a New Customer (or book its first sales order). This would be a 6-month Sales Cycle.