All of us are already familiar with the usual suspects of a business, conversion rates, average deal size and revenue growth. Such figures are the most prominent, are shown on dashboards, and reviewed every quarter. Imagine your sales metrics are telling stories much more complex than those numbers suggest. What if the surface area is just a glimpse of convoluted tales that lie deeper within?
It is time to get past the scoreboard mentality and examine the narratives which are often ignored, inside the sales data. Sales processes can be complex. Therefore, every set of metrics should not be treated as a chunk of a graph but rather as clues of a suspenseful mysterious tale.
The solitary key metric myth
It is very common to concentrate only one metric which is believed to call out an absolute truth like the “key metric”. It is a common saying that one brush does not create a masterpiece and similarly, one metric doesn’t tell an entire tale. It is common to witness spectacular conversion rates while deal sizes are shockingly low or it may also at the same time be very possible that revenue growth relies heavily on ludicrous discounting which by no means is sustainable.
The Unique Lens: Why Context is King (and Queen)
The sales metrics of a company are best understood within context. Rather than merely monitoring the metrics, start to ask “why am I counting the numbers?”
Solving the Enigma of Seasonality: Don’t panic just yet, when a conversion rate seems to be hovering at an all time low. Instead ponder: what season are we currently in? Are there times throughout the year where purchasers tend to drift inactivity or even industry specific lulls? These seasonal patterns require an explanation.
Immature Metrics for Immature Insights
Track the immature metrics to uncover the untold stories:
- Average Time to Value Realization: How much time is needed for a new customer who purchases your product or service for them to ready to start using it? Slow time-to-value might suggest either difficulties in onboarding or an unreasonable expectations versus reality gap.
- Customer Advocacy Rate: How many customers are actively working to promote your business? This is clearly measured in referrals, positive reviews and word of mouth which illustrate satisfaction and loyalty among the customers.
- Sales Cycle Velocity by Lead Source: Are some leads converting quicker than others? This can assist you in effectively directing your marketing budget towards the most rewarding sources.
- Engagement with the Content Throughout the Sales Process: Identify the specific forms of content (case studies, white papers, and demos).
The Human Element: Listening Beyond the Numbers
Remember that sales is a human endeavor. While metrics provide valuable data points, they don’t capture the nuances of individual interactions. Encourage your sales team to share qualitative feedback, listen to customer stories, and document their observations. This human intelligence can provide the missing pieces to the puzzle your metrics are presenting.
Turning Stories into Strategy
Once you start viewing your sales metrics as narratives, you can begin to craft a more informed and effective sales strategy. The hidden stories will reveal:
- Areas for process improvement: Pinpointing bottlenecks and inefficiencies in your sales cycle.
- Opportunities for targeted training: Identifying skill gaps within your sales team.
- Insights for product development: Understanding unmet customer needs and desires.
- Guidance for marketing optimization: Focusing on the most effective lead generation channels and messaging.
