Every sales manager needs to track performance of their sales and marketing efforts and when it comes to lead management, understanding how leads perform and why one lead converted over another is critical.
Numerous studies and our own research have shown that contacting new leads quickly can dramatically impact conversion rates. Therefore, number one and two on our list of “must track” key performance indicators (KPIs) are speed-to-contact attempt and speed-to-contact. The other three come in the order all leads must go through, and when used together, these KPIs can be powerful in helping to measure the performance of sales processes, campaigns, lead sources, and more.
Here are the top five KPI’s every sales manager should track:
1. Speed-to-Contact Attempt – How much time it takes to call a lead for the first time regardless of whether or not the call is connected.
2. Speed to Contact – How much time it takes to contact a lead for the first time.
3. Contact Rate – The percentage of leads that have been contacted (meaning a sales person actually spoke to a lead on the phone)
4. Qualification Rate – The percentage of leads that have been qualified (meaning the lead is a fit for your product and could buy within the next 90 days)
5. Conversion Rate – The percentage of leads that have been converted to customers.
Above are examples of two dashboards, from two separate companies, tracking the top five KPI’s. Let’s drill into these numbers a bit and see what we can learn.
As you can see, company #2 is performing much better than company #1. So what’s going on, for company #1 the qualification rate is low at 14.8%, while the contact rate is relatively high at 70.2%. This drives one to conclude the quality of the leads is poor. The sales manager in this instance may want to drill into this data to determine where the lower quality leads are coming from. For company #2, contact relative to qualification rate is where we’d expect.
Now, if we look at the conversion rate of 2.7% for company #1, again this isn’t a great conversion rate, a sales manager might be scratching their head wondering why. The lower conversion rate is likely tied to one of four things or a combination of these (1) the company is not competitive in the marketplace (2) their sales people may need more training (3) lead quality may be poor as noted above, or (4) the poor speed-to-contact may be factoring into the conversion rate.
Company #2 on the other hand is performing much better on their speed-to-contact metrics, which could ultimately be having a positive impact on their conversion rate.
As you can see, the power of these four KPIs together can provide valuable insights into your sales processes, campaigns and more. Leasd360’s innovative lead analytics and sales lead tracking software makes it easy to monitor key success metrics. We make critical data useful, simple and actionable.