Monday, November 26, 2012

Important Metrics for Inside Sales - Part 2

I think we can agree that dials per day/ dials per hour is the first number we should look at when looking at metrics for inside sales. However, that won't tell us the whole story. The next figure we should pay attention to is the "reach". Some people will also refer to this as the number of decision maker contacts.

This overall figure is also a raw number but measuring this will give us even more information. If I’m not reaching enough people with the responsibility and authority to make a decision, I’m not going to be able to sell. 

Look carefully at any barriers. The easiest one to look at first is skill level. Do people know how best to reach a decision maker? Solving this may take a combination of coaching and training. Being able to reach the right person requires the skill set to do so. Do the inside people know how to use a screener to get additional information? Can they talk to others in an organization in order to find to best person to speak with? Can they create an effective voice mail message?

If you decide that the employee's skill level is fine, you'll next want to look at your lead sources. Are you asking your inside reps to call the right people? If you are prospecting you might want to take a look at the titles and departments of your current customers to make sure you are focusing your efforts in the right place. Having better names upfront will help make the most of your phone time.

Another similar metric is reach per dial. Once I've decided what an acceptable overall reach for the hour/day is, I'll want to drill this down even further. I've found that it usually is a 3 to 1 ratio between dials and reaching a decision maker. In other words, you've got to call someone an average of 3 times before you might get to speak with them. Now keep in mind that this is an average, some people you’ll reach right away, others may take you 5, 6, 8 dials. 

To determine the cause of a higher than usual number, go through the same process as you would for the overall reach. Some units will prefer to measure reach per dial alone. In the end an inside rep making slightly less dials but has a higher reach will be the more successful sales person. The challenge for management is to learn what the parameters for success should be.



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