{"id":1477,"date":"2018-08-06T11:31:48","date_gmt":"2018-08-06T16:31:48","guid":{"rendered":"http:\/\/blog.kmbrian.com\/?p=1477"},"modified":"2020-12-04T17:17:44","modified_gmt":"2020-12-04T23:17:44","slug":"sales-reporting-best-practices","status":"publish","type":"post","link":"http:\/\/kmbrian.com\/blog\/sales-reporting-best-practices\/","title":{"rendered":"Sales Reporting Best Practices"},"content":{"rendered":"
A solid sales reporting strategy is essential to any organization. Those who don\u2019t set goals and regularly report on progress and results will – without a doubt – be missing opportunities to boost leads and conversions, and to maximize revenue.<\/p>\n
To put this into context, imagine that you\u2019re trying to lose weight or get fit. You wouldn\u2019t simply say to yourself that you want to \u201cget slimmer,\u201d or \u201cimprove your fitness levels.\u201d You\u2019d create an actionable plan and set specific long-term and short-term goals. You\u2019d set long-term goals of a target weight or being able to run a marathon, and short-term goals of losing a pound a week or increasing the distance you run by half a mile every two weeks.<\/p>\n
You\u2019d also track your progress via regular weigh-ins or monitoring the distance you\u2019ve run.<\/p>\n
If you would go to all that trouble for a personal goal, why wouldn\u2019t you put at least the same amount of effort into a critical function of your business?<\/p>\n
After all, the process of sales reporting isn\u2019t much different: You set long and short-term goals, track progress, and get your reps to report back to you with the results.<\/p>\n
That said, there\u2019s much more to think about when it comes to effective sales reporting. Here are three best practices that all organizations should be adhering to when deciding how their sales reps should report, and what should be done with that information.<\/p>\n
Metrics and KPIs are commonly treated as one and the same, but there are some key differences between them.<\/p>\n
In short, while all KPIs are metrics, not all metrics are KPIs.<\/p>\n
A metric is any number that can be tracked. Many of these are going to have little to no bearing on your sales reports or how you track progress.<\/p>\n
KPIs are specifically chosen metrics<\/a> that measure progress within an organization, and where you are in terms of achieving of your overall objectives.<\/p>\n So how do you choose the right KPIs for your business?<\/p>\n KPIs should be easily understood by every single person that plays some part (whether directly or indirectly) in your company\u2019s success. That means all your employees – not just your salespeople.<\/p>\n This means setting clear and simple KPIs<\/a> that can be understood at a glance. Overcomplicate your KPIs, and you run the risk of isolating team members who are removed from your sales and marketing activities, and as a result, don\u2019t understand the company\u2019s mission, or what they\u2019re trying to achieve and why.<\/p>\n Sales metrics can be broadly grouped into one of two types: outcome metrics and process metrics.<\/p>\n Outcome metrics are those that define the results of your sales efforts: things like leads created, conversions, sales revenue, profit, sales cycle<\/a>, and churn rate. You might also break down metrics like revenue and profit into revenue per sale and profit per sale.<\/p>\n Process metrics define what\u2019s taking place in order to achieve those outcomes. This might include the number of calls made or emails sent. Again, you might break down those metrics by segmenting them according to whether the action was first contact, a follow-up, or an attempt to close a sale.<\/p>\n Sales reports will generally include a mix of both outcome and process metrics.<\/p>\n There are countless KPIs you could<\/em> set; however, the more you set, the less weight they will carry within your organization. You\u2019ll also overwhelm your team, the result being that they\u2019ll spend less time selling and more time worrying about meeting targets and reporting on them.<\/p>\n Only set essential KPIs, and ensure that those you do set are the right ones for your<\/em> business. Don\u2019t worry about what other companies are tracking; figure out which metrics are most important for you.<\/p>\nKPIs should be clear and simple<\/h3>\n
KPIs should include both outcome and process metrics<\/h3>\n
KPIs should be kept to a minimum, and be unique to your business<\/h3>\n
2. Establish the Right Reporting Schedule for Your Organization<\/h2>\n
<\/p>\n