Unlocking Sales Success: Key Metrics Every Manager Should Track!

Welcome to the second article in our five-part series on Sales Management Building Blocks!

Let’s talk metrics. 

Metrics are the measurable performance indicators that reflect the actions your sales team takes and the results they achieve. To boost performance, focus on the key metrics that measure outcomes—and identify which areas are falling short of goals or standards.

Here are a few critical metrics every sales manager should be tracking:

Contacts/Traffic/Opportunities
This metric measures the total number of opportunities or contacts your team handles in a specific timeframe (usually monthly). To ensure your team is maximizing opportunities, establish a minimum number of customer interactions or leads they should aim for.

Close Ratio
Your close ratio is the sales team’s batting average: the number of sales compared to the number of opportunities. For trade showrooms, it’s the number of sales divided by quotes written. Tracking close ratio is essential for improving sales performance. If you’re not tracking it yet—start today!

Average Sale
A simple yet important metric. Calculate it by dividing total sales by the number of sales made. Train your team to expand a customer’s initial request into a full project to increase this number.

Performance Index/RPG (Revenue Per Guest)
This combines close ratio and average sale to show the worth of each opportunity. Compare this number with your marketing cost per lead—your performance index needs to exceed your marketing costs.

Productivity Ratio
This newer metric combines how many closes, appointments, and contact details your salespeople gathered during each opportunity. It’s the true measure of how productive your team is with each interaction.

Product Performance by Category
This tracks how well each salesperson (and the showroom overall) performs with specific products or vendors. Work closely with product reps to integrate this into your training plan and boost product knowledge.

So, what are you tracking?

Take a hard look at these metrics and identify where your team is excelling—and where you need to refocus your efforts. Numbers don’t lie, and they’ll point you exactly where to go next!

Now, go dig around in the numbers!

oxo
Jody