You must have heard that the first impression is the last impression. For marking a positive impression, you need to know someone first; else, you may muddle up. Similarly, knowing your leads before contacting them is important. The first point of contact can turn out into a gain of lucrative opportunity or a drastic loss. Tracking sales leads from the introduction to the last conversation is more important than you think.
Let’s understand what is sales tracking?
Sales tracking can be explained as keeping records of all your leads, right from the point of entry until the last conversation. It is monitoring all the leads becoming prospects & then customers and their movement down to the end of the sales pipeline. By tracking sales, you get a crystal clear idea of the strengths and weaknesses of your sales cycle.
Importance of Sales Tracking
Tracking sales pipeline is crucial for every type of business. It doesn’t matter if it’s small or big. No matter you are B2C or B2B, what your business size is, or which industry do you operate in, performance optimization and generating smart gains are important for all.
Let’s Form A Structure of The Sales Tracking Process
1. Spot Your Audience
Your first and foremost step should be to recognize your target audience. Why would anyone want to waste time over someone who will never require your product/service? This is why this step is crucial and aimed at preparing you for the next steps with more clarity.
2. Figure Out The Platform
Next is to find out the most used platforms by your audience. It can be online as well as offline. Identify what keywords they use for searching, what websites they visit most. List all the platforms that you find relevant to your business.
3. Determine Lead Stages
Your leads go through many stages throughout the sales pipeline. To track sales, you need to define each stage of lead. For that, you can make lead stages, such as prospect, cold lead, warm lead, hot lead, customer, or whatever according to your business. By doing this, you can define the stage of every lead in the sales pipeline and determine your pain points.
4. Identify Your Approach For Lead Engagement
There are many ways you can connect and engage with your leads. You can use SMS marketing, email marketing, e-books, webinars, and more. Identify all the channels that you are going to use and note down which approach is reaping more fruits for you.
5. Establish And Measure Metrics
Now that you have set up the entire sales tracking system, it’s the turn to practically analyze your sales pipeline and approach. Measure the website traffic, lead generation from one source, the average time is taken to convert a lead into a customer, the bottleneck for losing leads, and much more. Reports can be created considering all these parameters, and the sales approach can be optimized by sales tracking.
Advantages of Tracking Sales
The entire process of tracking sales can sound daunting, but practically, it is not. We have listed out a few benefits that you can reap out of simple sales tracking.
- Sales tracking helps you figure out your best-performing strategy to implement them across the board.
- You can determine your most lucrative product/service, salesperson, geographies, and demography.
- You can easily monitor and assess your team’s performance. Sales tracking helps effectuate quality checks and appraise best-performing team members.
- You can get more detailed and comprehensive insights into your sales pipeline.
- You can use sales tracking to prevent losses and avoid risks.
- Sales tracking helps you to better communicate with your customers and hence, better conversion.
Which Sales Metrics Are Important to Track?
Making the right decisions at the right time needs analysis of the right sales metrics, in which tracking sales help a lot. Here are a few sales metrics that you should focus on:
Lead Response Time
A study states that around 78% of people buy from the first respondent. So evaluating your lead response time is important. You need to answer as fast as you can to get that lead in your pocket. See how much time your sales reps are taking to respond to the customers. If it is more than 5 minutes, there is a lot of higher sales scope; you just need to improve your lead response time.
Sales to Cost Ratio
Paste this in mind that the revenue earned from the deal should always be higher than the cost of lead acquisition. You can understand whether the services you are using to acquire leads are actually profitable or not. Determining these values from the very start can save you from a financial crisis in the future. If you are paying more and earning less, then you should reconsider your target market and shorten your sales cycle.
Number of Sales Per Source
Use sales tracking to find out the most potential lead generating source. Calculate the number of leads you are getting from a lead source, and how many of them are actually becoming your customers. You can optimize your sales & marketing efforts and relocate your marketing budget based on the sales metrics.
Conversion rate is the percentage of leads converting into paying customers. Your team’s performance can be evaluated by determining the conversion rate. Do it on a quarterly, monthly, and annual basis so that you can manage costs at the earliest by forecasting revenue. If you see that your conversion rate is dropping, you should start guiding your sales team and tightening your lead generation & nurturing efforts.
Conversion Per Sales Reps
Sales tracking helps you identify your maximum profit-generating sales reps. Keep the morale of those sales reps high so that they can perform even better. You can use them as a benchmark for other sales reps to encourage them as well.
Average Closing Time
Sales tracking can efficiently tell you the time taken to close a deal. Different businesses have different sales cycles, hence different average closing times. Analyzing your sales cycles can help you set practical targets for your sales team.
Sales Per Demography
Define the age group, geography, and job profile of your customers. Many of your customers may belong to a particular age group or place or have the same profile. Based on demography, you can figure out your buyer persona. This helps you in targeting your ideal audience and effectuating more successful marketing campaigns.
Average Size of Deal
Knowing your average deal size is crucial to pump up your game in the market. You can get the average size of the deal by dividing total deals by the total amount gained from those deals. Increasing the average deal size means you are growing from a small business to become a mid-market or higher.
Sales Leakage Rate
You must be familiar with the rate customers are parting from your business and the reason behind it. It can help you to revive lost customers and acquire them back with a different approach. If it still doesn’t work out, you got a lesson to understand your mistakes and improve them the next time.
New And Old Customer Sales
Sales tracking helps you find out how much you are earning from new customers and how much you are making from old customers. You can easily determine the cost to acquire a new customer and retain old customers. After getting the figure, you can focus on nurturing & engaging customers and planning your marketing campaigns.
Analyzing these sales metrics by tracking sales can move you upwards in the market with peculiar marketing & sales approaches. This entire sales tracking process can take a very long time and effort if done manually. Instead, opt for a tool that can do it for you. Take your first step towards success with FinCRM. This CRM software can provide you in-depth sales reports and help you determine all the important sales metrics. No matter what industry you operate in, what is the size of your business, this CRM software can supercharge your business. You know everything about sales tracking; now, you only need feature-filled CRM software like FinCRM. Get the free CRM software trial here and choose its flexible plans as per your requirements.
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