When it comes to sales and marketing, knowing what metrics to focus on can help in determining the success of a campaign and achieving the goals you have set. While measuring the results of the sales process is important, using pre-sales metrics is also vital for businesses.
Pre-sales metrics help companies have better insight into their sales process. They can serve as a basis when setting goals. Additionally, they can help establish better key performance indicators (KPIs).
Identifying the metrics that matter to your company is the first step. For teams focused on revenue, choosing actionable metrics that drive behavior is the obvious option.
There are two types of indicators you should know — leading and lagging.
The leading indicators can serve as predictive measurements that will give you an idea of how things will progress throughout the sales funnel. These include conversion. The leading indicators may also change.
Meanwhile, the lagging indicators can show possible outcomes from the process. In short, they are processed output measurements.
Your activities can be important metrics since they can give leading indicators of the health of your sales pipeline. However, they are not enough. At the end of the day, results will be the final determining factor of the effectiveness of your strategy. So, they may have more value than activity.
That said, you need to understand what metrics matter. In the pre-sales stage, there are three metrics you should focus on. These are revenue per demo, margin percentage of completion (POC), and closed business without POCs.
Tracking these three metrics can help you get a better idea of what decisions to make when it comes to your sales and marketing plans. You can also use them to determine the right goals. Additionally, you can find out what KPIs to measure to find out the effectiveness of your sales process.
Getting your hands in the necessary data can seem overwhelming. Fortunately, there are customer data management platform providers like ThunderAct. With ThunderAct, you can monitor your performance, gather the right information, and improve your sales process.
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