How Measuring Sales Performance (Correctly) is the Key to Improving It
Let’s start with a question: Why is the Fitbit so popular?
It's a good fitness band, to be sure. But your exercise would yield the same result irrespective of whether you are wearing a band or not. It doesn't directly contribute to your fitness (like a treadmill) but simply measures it. It tells you exactly what you achieved from your exercise, i.e calories burned. To take a holistic view, if you know exactly how many calories you burned, how much deep sleep you had, and your heart rate, you can more accurately determine which areas need more focus and set more realistic goals.
Another reason is that it's just more satisfying to put a number on what you achieve: 10,000 steps walked, 900 calories burned, or 6 hours of deep sleep. These numbers not only keep us on the right track, but also present a clear assessment of our efforts. This goes beyond fitness. If you know you have a credit score of say, 752, you'd definitely start paying your bills on time.
The same goes for our professional lives as well. The problem here is that we don't yet have a single metric to reflect our overall competency and thus most employers rely on the deeply flawed quarterly performance reviews. And while many knowledge-based jobs are tough to quantify to a single number, some job profiles can benefit immensely just by comprehensively measuring their activities. The most common of which is sales.
Currently, sales performance is largely measured by a single metric: revenue generated. However, this is merely measuring results, not the effort and skill utilized to achieve those results. Sales leaders should be measuring outbound activities, follow-ups, and meetings set. Think of it in terms of fitness. You can't call yourself fit if you burn 1000 calories a day but have 0 hours of deep sleep. Like fitness, job performance should also be measured holistically if any real improvement has to be achieved.
Prodoscore is like the Fitbit of sales: it measures every little detail to offer a comprehensive assessment of sales performance. By extension, it helps reps in the following three ways:
1. Improves Sales Performance
Measuring sales rep engagement across all business tools provides deep insights into their strengths and shortfalls. This data then can be used for course correction, and by extension, improve sales performance. If you know a particular employee spends too much time on an otherwise easy task, they can be easily trained to improve their performance.
2. Boosts Morale & Reduce Turnover
How do you think those employees feel who work hard but don't receive any recognition due to mediocre results? Frustrated? Neglected? After a few such quarters, they might just stop putting in hard work or just leave. Given the high cost of employee turnover, a better strategy is to recognize their shortcomings by accurately measuring their performance and then prescribe requisite training.
3. Replicate Top Employees
Top performing employees don't do different things, they just do the same task differently. If you measure all their activities (and not just conversions), you can learn all their tricks that can be taught to all other employees- turning them all into star performers.
Sales is a complicated task. Some clients are sold in a single call while others may take 12 follow-ups before refusing! To put that all in a single basket of "conversions" isn't just unfair to sales reps, it’s also a lost opportunity for businesses to actively boost their performance. So if you want your salespeople to match and exceed their goals every single time, the first thing you need to do is see what they are doing. Give it a try.