Enterprises using indirect sales models rely on partners and distributors to sell their products: so their in-house sales reps do not generate revenue directly. How, then, can we know which reps are actually generating sales and, more precisely, how much they are bringing in? This article will show you six metrics to help.
The challenge is to find metrics that give insights into results that these salespeople don’t directly control. When the sales rep is but a small link in a complex buying chain making use of any number of channels, it’s still possible to measure who contributes to any one sale.
1. Number of meetings booked
Fundamental to your sales reps’ performance is how many meetings he can book each period. For a high score, he will need a good sales pitch and great ability to hook prospects – bonuses on top of the proposals or even deals he is creating for the business. Put another way, someone who can interest businessmen to resell your product is someone who can successfully impart its business benefit throughout the sales channel.
2. Volume of closed deals
How many deals your sales rep can close is clearly a good indicator of his worth to the organisation. If the number is higher than others in the team and/or the industry average, then excellent, he may deserve recognition or make a good trainer, whereas he may need support or training if he is underperforming.
3. Number of opportunities for growth established and then materialized
The end of a sale doesn’t come with a closed deal. The work continues as you upsell or expand the partner network. These activities should also enter the formula for calculating sales performances. You can even analyse the effectiveness at fulfilling these activities of your various channels so that you can focus your sales team’s resources effectively.
4. Time devoted to selling
You obviously expect your sales reps to sell, so an important metric is exactly how much time each rep actually spends selling. However, since sales reps have other activities that contribute to selling, extracting an exact figure for this metric is problematic. Some use questionnaires asking the sales reps directly. Others use time spent on the telephone (e.g. distant selling). If the balance is wrong though, you know to provide more support or change their role.
5. Training sessions completed
Your salespeople need to know their subject, especially when they’re talking to highly educated executives or technical managers. Persuading already highly knowledgeable people what makes your product or service worth consideration requires knowledge and skill which in turn require training. Therefore, metrics of their level of training can help explain the number of deals they’re closing.
The ways different companies measure performance vary according to their industry, size, complexity… even culture but they are all (or should be) “smart”1. These metrics may generate more worth when used in combination, e.g. to show just what makes up the ideal salesperson and in what facets and how close each agent is getting. This data can then direct your training programs more precisely and profitably.
