Sales Training KPIs
Your sales organization relies on sales reps to improve sales. Without them, it would be impossible for you to meet your business sales goals satisfactorily. Globally, sales organizations invest a great deal of money in training their sales reps to remain competitive.
To get the most out of the sales training investment as a sales leader or manager, you must know how to evaluate the training program’s impact (including peer learning for sales activities) on sales representatives. At this point, all you need to learn about is sales training KPIs (Key Performance Indicators) to start evaluating sales training activities or programs properly.
What are Key Performance Indicators?
Sales training KPIs (Key Performance Indicators) are the metrics or indicators that a sales manager uses to evaluate how effective a training program is. You can use various KPI metrics to determine whether physical or virtual sales training is improving employee performance and the overall performance of the sales department in your organization. The common sales KPIs sales leaders use to evaluate training include:
- Customer acquisition cost: Every sales organization wants to beat down the cost of acquiring a new customer, which is one of the key indicators to measure the success of sales training. Sales organizations spend much money on advertising campaigns and promotions before acquiring a lead, costing them more to turn a lead into a paying customer.
- Customer Satisfaction: Good customer service is a prerequisite for customer satisfaction. One of the main reasons for holding sales training for the sales staff is to improve the customer service of the sales reps. This sales metric is important because customers get satisfaction when they are approached with good customer service.
- Cost per learner: This is a key indicator for determining the net profit for your sales organization. Sales organizations budget lots of money on training programs for their sales reps and are looking for a way to beat the cost to the barest minimum. You should calculate all the money you spend on training programs, including the training materials, and use them as expenses when calculating the ROI for your sales organization.
- The customer churn rate: This indicator measures the number of customers you lose over time. Sales coaches need to intensify their efforts to reduce the churn rate for the company because customers are important to every sales organization.
- Sales Rep Efficiency: This is the performance quota of the sales rep. It is a key metric in deciding the success of sales training. Sales training is supposed to improve the efficiency level of the sales reps after it’s completed. This is because an efficient sales rep is an indication of improved sales performance.
- Lead conversion ratio: This is the level of converting leads into paying customers. After acquiring leads, every sales organization wants to turn them into high-paying customers. It will be best to pay attention to your leads’ conversion rate after a training activity to evaluate the impact of the training.
- Customer sales cycle length: This performance indicator means the continued process of converting a lead into a customer. Sales leaders are working hard to accelerate the sales cycle and reduce the days required to convert a lead into a buyer. The formula for calculating sales cycle length is the total number of days it takes to close a sale, divided by the total number of deals.
- Pipeline Health: The total number of sales deals in the reps’ sales funnel. A healthy sales pipeline contains more close deals than open deals. Although it is very normal for a deal to be open, a healthy sales pipeline contains a higher number of closed deals.
- Customers’ win rate: Sales leaders often work to improve the customer win rate for their sales organization. This performance metric is one of the most important indicators because higher sales means increased customer win rate.
Why Are Sales KPIs Important?
Every successful sales leader runs their operations on data. With the help of data, they can track their sales activities and use it to predict and plan for their future sales goal.
As a sales manager, it is important to understand the KPI of your sales organization to use it to estimate the performance of your sales team members properly. You should know the abilities of your team reps and provide useful advice on the sales metrics they need to improve on.
Key performance analysis helps to improve the overall sales performance of your organization. A regular training session is important to improving the sales skills of your team members and, in turn, a viable means of improving sales performance. You should identify your various KPIs and communicate them to the sales coaches so they can include them in their training content.
KPI also gives sales leaders a clear vision of where they need to improve in the sales activities of their organization. By this, you will have a clear picture of the performance status of your organization.
When measuring the impacts of sales training on sales performance, sales leaders need to consider all the identified sales metrics to guide them through the selling process. As a sales manager, you should not hesitate to budget enough money for onboarding programs and sales training for your sales team.
Once you consider these ‘hard’ key performance indicators, it’s time to leverage them to measure the impact of the new skills your reps acquired after a training program. Doing this will save you time and money on training programs that will not impact your sales representative’s performance.
Interested in learning more about scaling your sales team while successfully maintaining your conversion rate, team motivation and engagement? At SaleDeck, we provide you with tools and resources to improve the efficiency of your sales team.