Having the right data is critical to improving sales stats for any business. This data can be accessed when you use the right kind of sales tracking tools. These tools help you to single out strategies that are working and get rid of those that are not.
A good sales tracking platform lets sales teams accurately and quickly monitor their sales activities to have a good understanding of their target market, improve sales rep performance, identify potential issues in the sales pipeline by analyzing crucial data.
Why Do Sales Tracking Tools Matter?
The primary reason every business that is serious about sales and growth must invest in sales tracking is to generate enough revenue to stay afloat. The ability to capture how leads interact with your business from the entry point to through all the stages of the sales funnel to becoming customers makes all the difference.
Sales tracking makes it possible for you to identify customer pain points within the sales cycle and determine the level of efficiency of your sales funnel.
Here are 5 ways businesses can leverage sales tracking tools to increase revenue:
The conversion rate is one of the ways to increase sales. Your conversion rate is an important metric to measure because you can tell the percentage of leads that end up as paying customers, you can easily predict your revenue targets.
A good sales tracking platform will reflect the conversion rates of each sales rep so you can determine how top reps can close deals and identify reps who need sales coaching. Additionally, you can also tell sellers’ conversion rate. Overall, the win rate is a reflection of your team’s performance.
It takes time to generate new leads. The speed with which your sales reps respond to leads will help to determine whether or not you can convert the lead. Generally, sales reps should aim to respond within an hour as this has proven to increase the chances of qualifying the lead.
Sales tracking tools capture important information like who the leads are, how they got to know about your company and the stage of the sales pipeline where they are. If your sales reps are not attaining their quotas, you simply need to look at their lead response time to determine if they can improve.
It is critical to determine whether the revenue generated from a closed deal is higher than the cost of deal acquisition. This metric helps to determine if you’re investing in customers that aren’t profitable.
Using sales tracking tools, you can compare the size of the deal to the cost of customer acquisition and avoid financial problems. If you are putting in more resources to secure a sale than you are earning then you may want to consider shortening your sales cycle or rethink your target market altogether.
The average sale price lets you measure the average revenue you make whenever your sales reps close a deal. It’s always better when this number is high.
The ability to assess the revenue generated from each sale makes it possible to determine the effectiveness of your team at upselling or even pursuing more valuable accounts. Steady growth in the average sale size could signal revenue growth.
Sales tracking platforms give you insider information into every stage of the sales pipeline so your sales reps can make the right decision when it matters to close a deal. By using artificial intelligence to track interactions with customers sales reps can see all customer touchpoints and the next steps, access all interactions with customers and have an up to date view of the sales pipeline. Having these real-time data makes it possible to not only close deals but also upsell.
Every business, whether big or small, requires a sales management strategy to thrive. Having a solid sales process is crucial for the success and long-term stability of your business.
Yet, it takes time to optimize the sales process to achieve maximum revenue. Sales tracking tools let you identify and analyze each part of the sales process so you can single out successes, failures and opportunities for improvement. Sales tracking is an asset especially now that most employees including sales reps have to work remotely and sales managers have little to no physical control over their work.
This article does not necessarily reflect the opinions of the editors or the management of EconoTimes