To determine the success of your prospecting strategy, you need to refer to indicators. Coming up with KPIs is one of the lasts steps of your sales prospecting definition, and probably the most valuable. These KPIs help you in the choice of your sales prospecting strategy, your actions and your investments. Furthermore, during the final sales prospecting steps: KPI definition can be done with several data sources!
Based on this data, you can take the necessary corrective measures to achieve your objectives. Now, these KPIs (Key Performance Indicators) are of different types:
First, these are concrete figures reflecting your performance in carrying out your sales prospecting activities. You can monitor your productivity at regular intervals (monthly or annually) with these indicators. Quantitative sales prospecting KPIs are relatively easy to obtain, thanks to your CRM or other tools.
For telephone prospecting, you have the number of calls made, lost sales and sales cycle time. You can also see the number of new customers, the turnover achieved and the average sales basket. The number of new customers is one of the most relevant and revealing indicators. It allows you to measure the relevance of the product to the customer’s needs. Knowing the average basket allows you to predict the number of orders needed to reach your objectives.
Also, prospecting by networking reveals indicators such as the volume of leads generated. You can work on your content to attract more visitors, if you notice a decline in volume. Find out what you need to do by reading this article: How to generate qualified leads?
If you only use quantitative indicators, it will be difficult to identify your performance levers. Qualitative indicators will be useful in developing your marketing or communication strategy. The actions you will take on these indicators will improve your company’s image and attract more prospects.
The qualitative KPIs are used to understand the concepts of commercial efficiency and customer loyalty. For all commercial prospecting methods, the examples of indicators are the customer satisfaction index and the number of complaints. Knowledge of the customer journey is important, as it is through this criteria that you will improve their level of satisfaction. Also consider analysing the effectiveness of the communication channels you use. You can use this indicator to help you determine the profitable channels.
The two previous indicators allow you to obtain them. Knowing these rates, facilitates the strategic management of your commercial prospecting actions.
If your method of choice is telephone prospecting, you can calculate the appointment rate. You also have the prospect/customer conversion rate, the customer retention rate and the customer wake-up rate. The lead loss rate should be kept as low as possible. The number of customers actually lost should not exceed the number of customers you can lose.
The lead-to-customer conversion rate allows you to compare the number of appointments obtained with actual sales. Calculating the retention rate is about the number of customers who can recommend you versus the total number of customers.
As you know, the performance of your sales teams also has an impact on the effectiveness of your prospecting strategy. Indeed, you can analyse how they generate profits and calculate the sales achieved by each of them during the commercial prospecting campaign. This way, to avoid losses, you need to monitor your salespeople closely and organise training accordingly. To do this, consider the gap between your targets and the turnover achieved by each salesperson.
Based on the number of visits made by your salespeople, you get an overview of their profile. This way, you can offer them a personalised challenge adapted to their character. Other indicators such as the number of orders per salesperson are also important. Determining the contact rate is crucial for improving the performance of your team. This is the percentage of calls made that result in a positive outcome. The same is true for the response time of prospects. This indicator shows the number of quality conversations with prospects.
You can use Hubspot which will allow you to manage your commercial prospecting and reference your prospects’ contacts. It will also allow you to make reports and follow your activity and your indicators.
The effectiveness of your prospecting strategy and the performance of your team can be measured by means of KPIs. These are of various kinds: quantitative, qualitative, rate-based and team management related. To properly evaluate your prospecting strategy, identify all the indicators specific to your prospecting method. This monitoring is essential for choosing the actions to be taken, optimising the prospecting plan and motivating the sales staff. We are getting towards the end of sales prospecting steps, KPI are very important, but so is choosing the right communication channel.