As the calendar turns, it’s a good time of year to review your numbers. Do more of what works and less of what doesn’t. That’s how your business can really benefit from tracking metrics. As Stijn Debrouwere once said, “Metrics are for doing, not for staring. Never measure just because you can. Measure to learn. Measure to fix.” With that mindset, you can then build your plan and choose the right sales metrics. Unfortunately, you can encounter basic problems before you even set up your first sales dashboard. Even if you’ve started tracking results, your foundation may be cracked.
Problem #1: Not Tracking Any (or Not Enough) Sales Metrics
Some business owners or sales managers haven’t subscribed to the metrics revolution. They either rely on anecdotal evidence, gut instinct or traditional sales figures. The problem here is that without suitable sales metrics, you may be missing key opportunities or squandering time on the wrong ones.
Problem #2: Not Reviewing the Sales Metrics Tracked
“I’m too busy…” Yes, we’re all inundated with far too many channels to monitor and manage. But it does little good to track performance and then not review it. With out-of-sight-and-out-of-mind, you may as well not measure.
Problem #3: Tracking Vanity Metrics
Vanity metrics are typically statistics that sound good or look good on paper, but don’t reflect things important to business success. You can’t spend a LIKE, but you can take REVENUE to the bank. “We had 2,000 people visit our booth at the big industry conference” sounds like it could be a good thing, until you find out those were mostly college kids looking for summer jobs or random people entering your sweepstakes to win a new iPad.
Problem #4: Valuing Volume over Value
Which is better, making 200 calls a day or closing 2 big deals a day? We see businesses who often value the ol’-smile-and-dial instead of capturing true value. With so many ways of tracking performance, make sure the metric drives you toward real goals. It’s better to be productive than busy.
In our next article, we will dive into how you can choose the right sales metrics for your business.