The preferences of your customers have changed, and so have their journeys. The key performance indicators (KPIs) used to track the success of your sales funnels are no longer as effective as they used to be. Plus, our old-timey colleagues didn’t have the tech we have today. It’d be such a waste not to use the tools at our disposal to improve our sales efficiency. 2020 and the years which will follow call for new KPIs.
And in this article, we’re taking a look at the five most important ones.
Let’s get to selling!
1. Social Selling Index: One of the Most Important Key Performance Indicators (KPIs) for 2020
If any stage of your sales funnel includes social selling on Linkedin, SSI (Social Selling Index) is a KPI you should be tracking.
If you’re not already using social selling, it’s time to start:
- 75% of B2B buyers and 84% of C-level executives use social media to make purchasing decisions (Source)
- 98% of salespeople who have over 5,000 LinkedIn connections meet or exceed their quota (Source)
- Social sellers generate 38% more new opportunities than traditional sellers (Source)
If that sounds good enough to implement social selling right away, you’re going to need the right metrics to track your success.
LinkedIn’s Social Selling Index works like a charm as a sales funnel KPI, especially if you’re using social selling in the lead generation phase.
SSI measures the four elements of successful social selling:
- Branding. SSI takes each sales rep’s profile into account. It monitors how effectively your reps are completing their profiles with customers in mind, adding interesting content, and receiving endorsements for their skills.
- Connecting. The second variable is all about your reps connecting with their prospects over LinkedIn. When integrated with your sales funnel, LinkedIn’s SSI system will also help your reps by allowing them to accurately target prospects, and it’ll monitor how well your reps leverage existing connections to connect with new leads.
- Engaging with social selling insights. A good sales rep has to stay in touch with their industry so they’re perceived as a trustworthy source by their prospects. SSI measures how often your reps engage with and share relevant content.
- Relationship building. Finally, it’s not enough to just shoot one message and call it a day. SSI also measures how you reps nurture relationships, how they follow up, and so much more.
SSI is definitely the right metric to track in 2020, especially if you want to make sure you’re maximizing your conversions at each funnel stage.
2. Sales by Contact Method
Back in the day, the main way to sell was to cold call until someone finally said yes. Maybe there was a letter sprinkled in here and there.
However, 2020 needs us to have 20/20 vision for contact methods and channels that convert.
The majority of sales teams track contact methods very vaguely, leading to:
- Disengaged sales reps
- Low conversion rates
- Lost opportunities
However, when you track sales by contact method as your sales funnel KPI, you can see:
- Costs associated
- Contact methods which work best
- Contact methods that suit certain sales reps
Incorporating SBCM is incredibly beneficial if you look at it from a holistic standpoint, while also tracking the performance of individual reps and the differences between prospects.
For example, you may find that the majority of prospects respond best to face-to-face contact. However, that comes with high costs, so you can easily adapt your approach to meet only with key prospects.
Similarly, you can help every rep maximize their engagement while also maximizing ROI.
By simply keeping them focused on the channels that delight them and your prospects.
3. Customer Lifetime Value
If you’re still worried about high acquisition costs, are you sure you’re tracking customer lifetime value (LTV)?
Spending $100 to bring in a customer that will eventually help your company earn $10,000 isn’t a lot. However, spending $100 to bring in a customer that will generate only $50 is a bad move.
The trick is in analyzing and using LTV to understand your customers and the revenue you will be getting from them.
You can easily calculate your LTV with the following formula:
Lifetime Value = Gross Margin % x ( 1 / Monthly Churn ) x Avg. Monthly Subscription Revenue per Customer
LTV is one of the important KPIs for the entire sales funnel, as well.
It shows you the effectiveness of your methods; from the very first stage to the very last.
It could also alert you to any problems with offers or value propositions.
4. Meaningful Actions
If you’re still only measuring your sales target progress, you’re lagging behind and you’re not motivating your reps.
When reps only see a numerical value (e.g. 35% of target reached), they won’t feel motivated to keep performing meaningful actions that drive that progress.
Instead, they’ll feel as though all the actions they perform don’t matter unless they’re seeing the big needle move.
Make sure you track actions such as:
- Follow-up emails
No action is too small if it’s driving progress.
However, when you start using the amount of performed meaningful actions as your KPIs, you’ll see your sales reps exceeding targets and expectations, day in and day out.
You can even use Spinify to add gamification to the mix, and make hitting the targets becomes even more fun!
5. Sales Funnel Flow: The Most Important Sales Funnel KPI
Finally, there’s nothing more important than understanding how long it takes for your lead to convert into a customer.
In particular, you should track:
- The number of leads
- The number of qualified leads
- Sales team response time
- Closing rates
- The average amount of time it takes for a lead to advance through the funnel and convert into a paying customer
This is especially important if you have a long sales cycle, or a complex sales funnel.
When you understand and track your sales funnel flow, you’ll be able to monitor performance consistently.
And if you notice a bottleneck, you can eliminate it before it’s affected your targets.
Finally, monitoring your flow is a great way to further optimizing your sales funnel and capturing even more customers.
Track Meaningful Sales Funnel KPIs with Spinify
Spinify is a sales dashboard that makes the entire sales process much more fun for your sales teams, and more effective for your company.
From encouraging healthy competition to tracking day-to-day engagement metrics, you’ll be well on your way to unlocking your team’s full potential.
Spin(ify) the wheel!