Ultimately, the goal of any business is to attract and retain customers. Closing sales is a crucial part of that; if you get members of your target audience into your sales pipeline, but they never end up becoming customers, your efforts will be wasted. CRM software can help your business close more sales, but only if you know just what metrics matter in measuring your success. Here are 4 metrics to pay attention to as you optimize your sales process.
1) Lead Origin
Do you know where your leads come from? How did they learn about you, and where did they first made contact? If you gather this information, you can gain a better understanding of which leads are most likely to convert to customers.
For example, you may find that leads originated from your website are actually more likely to become customers than those who contacted you directly. Now, you can increase your focus on the former to maximize your success and close a higher percentage of sales.
2) Lead Engagement
Your CRM can help you measure just how engaged your contacts are with your content after they sign up to become a lead. As you can probably imagine, leads who continue to open and click through your emails, or read conversion pages on your website, will be more likely to become customers than those who sign up initially, but never follow up.
Measuring lead engagement comprehensively allows you to categorize them into a number of groups, which your sales team can then use to prioritize its effort. Time is limited, and pitching your company only to leads who have shown continued interest in your product or service can be a valuable tool to improve your closure rate.
3) Average Lead to Customer Time
You may also want to consider measuring the amount of time it takes for a lead to turn into a customer. How many days, weeks, or months do they need in your system before they’re ready for a sale? How many emails do they receive on average before indicating their readiness to buy?
Answering these questions helps you establish an average time line for your lead. If they don’t become sales-ready until at least a month into the process, making the sales call a week after they enter your database will be of little value. Timing your sales-based communication means increasing your chances of reaching them at a time when they are most likely to make a buying decision.
4) Internal and Industry Conversion Rates
On average, how many of your leads turn into customers? Knowing that number, and how it compares with figures common for your industries, can go a long way toward helping you determine the effectiveness and success of both your lead nurturing and your sales efforts.
If you lag significantly behind industry averages, you may want to investigate just why that is, and how you can rectify the situation. Of course, simply running ahead of the average also deserves further investigation: you want to understand why, so you can replicate the process for future leads. Either way, knowing both your internal and industry conversion rates can help you close more sales in the future.
Of course, none of the above is possible without Customer Relationship Management software that tracks your interactions with your leads, and provides you with reports that help better understand the buying journey your leads take on their way to becoming customers. They can help your business close more sales, but only with the help of software that makes tracking them easily.
Fortunately, we may just have the software for you! Contact us to learn more about BigContacts, a CRM designed specifically to help improve your lead nurturing and sales pipeline management efforts.