What Key Performance Indicators Should I Track?
Module: Prospecting Like an Evangelist Session Number: 8
Session Title: What Key Performance Indicators Should I Track?
Now that you understand the value in finding your ideal customer and you’ve identified who that is, you’ve learned tactics to connect with them, you’ve developed a list of your Dream 100 customers, and you’ve considered the best approach to communicate with those customers, now you must measure your efforts. Your Key Performance Indicators will help you measure your success so you can determine which of your efforts are most effective.
Your organization may have built KPIs into its CRM, and if you don’t already have established KPIs, we can help you with that. We’re going to consider two different categories of KPI: activity-based and outcome-based. Evaluating both categories together will give you a more accurate picture of your process.
Activity-based measures include emails, phone calls, initial conversations and other forms of outreach. The problem with measuring only the activity-based steps is that sellers often learn to game the system by reporting a large number of calls or dials or emails sent.
If you’re focused on finding new prospects, it’s important to know how many of those outreaches resulted in a prospect who said yes.
Outcome-based measures are the demonstrations I gave or the negotiations that I engaged in. These are the steps that moved the deal forward.
As you collect the data, enter it into a spreadsheet so you can work on metrics.
You’ll collect every activity you’re using to grab a prospect’s attention, and you’ll enter that on your spreadsheet. Whether you’re sending packages in the mail or LinkedIn messages or emails, you’ll collect that data and enter that into the blue section.
Then we’ll work to create ratios that help us understand how successful we’ve been. If, for example, we want to determine how successful we’ve been at scheduling new appointments, we’d create a ratio of the number of demonstrations to the number of contacts. If 10 outreaches resulted in one new appointment, then we’ll create a ratio of 1:10, and by dividing the first number by the second number we come up with a metric we can use.
Then, we can determine that for every two demonstrations I do, one leads to a negotiation. Then for every one negotiation meeting, I’m closing one deal.
These numbers help me quantify which activities are the best use of my time and how I need to spend my day.
Now that you have numbers in hand, you can coach your team members or sales reps, or establish goals for yourself.
In this case, if you’re having 10 conversations a day, and if you’re sharing the message we’ve provided, the numbers indicate that at least one of those conversations should turn into a demonstration.
Consider which KPIs are best for your organization, because they will vary according to your process. If you’re just beginning the process of creating KPIs, focus on the outcome-based activities first.
As long as you’re getting new prospects and new activities and new proposals and new demos, you’ll know you’re being effective.
Tasks to Implement:
Begin by tracking your individual activity so you can include it into a spreadsheet that will help you create ratios for your activity. Then, for each outcome-based category, determine how many activities you engaged in to produce that outcome.
How many outreaches were required to land one demonstration? You can also work to determine whether one form of outreach has been more effective for you than the others.
Once you’ve established this baseline ratio, you’ll be better able to track improvements or isolate problems for your sellers. If your process suddenly stops working, you’ll be more likely to identify what went wrong. Use these numbers to help your sales team improve, or to improve your own efforts.
If your organization doesn’t have its own list of KPIs, begin a conversation to determine which activities within your process you should be tracking.
Once you’ve determined who the customers are that you’d most like to connect with, you’ll want to be intentional about your efforts to grab their attention. The only way to effectively determine which efforts are working and which efforts are not is to track your activity.
Keep a record of your outreach activities and your outcomes so you can determine whether you’re successfully bringing new prospects into the funnel.
If you never measure your activities and their success, it will be difficult for your organization to duplicate any success it has.