02 Apr 6 Ways to Measure Sales Enablement
For many B2B sales teams, it is often tempting to create strategies and even pursue initiatives based only on feelings rather than data. Statements like “Revenue has dropped this month, maybe it’s because of poor lead generation efforts.” or “I thought this content would be a top performer for our audience, maybe we didn’t distribute it correctly.” are pretty standard.
Instead of these conjectures, teams should lean towards using KPIs and sales enablement best practices to better direct their time, effort, and resources. By being more strategic in your sales process, you’ll get everyone to align toward the same goals and initiatives.
When determining the KPIs that teams to track, first take a look at the most critical company goals. These are typically things like increase sales, improve customer experience or reduce churn/costs.
From here, you can easily derive the kinds of strategic initiatives that your department may pursue to support those organizational objectives and the buyer’s journey. Lastly, you can determine the specific-progress-to-goal indicators, whether qualitative or quantitative.
If you’re still having trouble, no worries, we’ve got you covered. Below we’ll outline some common sales enablement metrics you’ll want to consider measuring to hold your sales and marketing teams accountable.
Here is how to measure your sales enablement strategy
1. Close rate
The close ratio refers to the percentage of sales transactions that lead to a purchase of your products versus those that don’t. This metric indicates marketing performance gaps and sales performance gaps.
A low close rate could be the result of:
- Poor product or market fix
- Ineffective sales enablement
- Improper targeting of potential buyers
In a perfect world, your close ratio should be as high as possible. You can easily calculate it by taking the number of closed/won opportunities from a given time and dividing it with the total number of all opportunities.
For example, if you closed 3,000 deals from 12,000 opportunities, your close ratio is 25% (3,000/12,000*100 = .25%). Which is actually pretty darn good. Most best-in-class sales organizations close 30% of the opportunities in their pipeline.
You’ll want to continually monitor this metric because even small improvements can increase efforts across the entire sales team.
2. Average deal size
The average deal size is also known as the average selling price. This metric is calculated by the dividing net sales with the number of products sold. In the case of more established companies, it’s likely that you already know this info. But for new-to-market products, you’ll need to you to start with your assumptive price and then track from the date of launch.
You’ll also want to calculate average deal sizes across separate market segments. You’ll want to look for indicators that show where your organization could have a higher average deal size.
Why? What can you learn from these market segments that could increase your average deal size in the other markets or industries?
This important KPI helps you better understand your sales channel capacity. It can reveal unrealistic revenue targets and identify the right industries your sales team should focus on.
Improvement in average deal size is directly a result of an increase in sales output, just like a decrease means a decrease in sales productivity.
3. Time spent selling
According to Forbes, reps only spend less than 36% of their day selling. Ouch. The tools and technologies you adopt for the sales team should significantly reduce the admin time of your sales reps and sales cycle, not add to it.
With fewer interruptions and more automation, your team can embark on actually selling, and any time invested in core selling activities can boost your revenue by leaps and bounds. By tracking time actually spent on selling is a good way of measuring the success of any sales enablement program.
4. Number of sales activities
Unless your team is diligent with entering CRM data, it’s hard to measure selling activities. It’s also hard to get buy-in from sales to complete such data entry as it is often perceived as a form of micromanagement.
But if sales leaders can get sales reps to understand that by going the extra mile to log activities properly, they then can help remove the roadblocks that are preventing them from doing their job and assist them in closing more deals with actionable data.
For example, if you notice an increase in the number of sales activities after you built out sales email templates, or if you injected automation technology into ongoing processes that were previously manual, then that means your tough conversation with the sales team was victorious.
On the other hand, if you see a decrease in the number of sales activities, you’ll want to intervene sooner to identify areas of improvement. The fact that you can course-correct in real time is vital in keeping your sales team on track towards achieving business goals and objectives.
5. Prospects turned to opportunities
Also known as the lead-to-customer conversion rate, this metric helps measure the impact of your sales enablement program in its most basic form. Whatever sales enablement tool you choose, it needs to assist your sales reps in identify hot qualified leads, as well as can let your salespeople respond quickly.
The technology should also allow reps to use sales content to communicate specific messages to your prospects to move them further down the sales funnel, so the prospect is ready to buy sooner. Each of these functionalities will drive increased conversion rates.
By running a simple CRM report, you can identify the number of prospects that turned into opportunities over a given time. But the funnel doesn’t stop at an open opportunity. You’ll want to nurture your prospect through the other sales opportunity stages to turn that lead into a loyal customer.
6. Percentage of quota attainment
Another popular sales enablement metric is the percentage of quota attainment. One job of a sales enablement leader or sales manager is to ensure that an underperforming or new salesperson performs at their absolute best.
When your sales training program moves someone from underperforming to consistently hitting quota, you know you’re doing something right. To have the most significant impact on revenue metrics, you want everyone hitting quota. We know, easier said than done.
Therefore to optimize sales enablement efforts, it’s important to measure every salesperson’s effectiveness and how this relates to their ramping and onboarding of customers. To measure one’s effectiveness, you need to measure the time that it takes for a new sales reps to attain set sales quotas.
A long ramp time indicates the possible need to retrain or even hire new and more experienced sales reps. On the flipside, a shorter ramp time means you may only need to make slight tweaks to your sales training process.
At a high level, no two sales enablement programs are the same. As such, no two organizations should use the same metrics in determining effective sales enablement ROI.
However, these metrics we mentioned above form a stable baseline to help you determine whether your efforts have had a positive impact on your sales organization or not. And if things aren’t going your way, these metrics will also allow you to get things back on the straight and narrow path to sales success.