The Selling Factory

The Metrics in Sales You Need to Be Tracking

Written by Adam Grossman

An ordained rabbi, who has founded multiple ventures focused on workforce development, he is a cofounder and the Chief Development Officer at The Selling Factory.

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Did you know that the average net profit margin is 10%? Without metrics in sales, it’s hard to know whether your business is succeeding. It’s like trying to drive without a speedometer. 

The good news is that there are plenty of metrics at your disposal. These metrics will give you a complete picture of your company’s performance. 

Once you learn how to use them, you can focus on improving your company and see actual results. Want to know which metrics to track? If so, then read on to find out!

Sales Pipeline

A sales pipeline is a critical tool for sales performance management. It provides a clear overview of where each sales opportunity is in the sales process. 

Track key sales KPIs such as conversion and win rates to sell more products. This will help you identify areas where you can improve and increase sales. 

Another way to track the progress of salespeople and teams is by using a sales pipeline. This will show you how close each individual or group is to making a sale.

This provides excellent feedback on which sales strategies are effective. Then you can decide on which to keep or change. A well-managed sales pipeline is vital for any company that wants to make the most of its sales potential.

Closing Ratios

In business, your closing ratio is the number of sales you convert divided by the total number of leads you have. For example, if you have 100 leads and you convert 10 of them into sales, your closing ratio would be 10%. 

Closing ratios show how good you are at getting people to buy your product or service. A high closing ratio means you are good at converting leads into sales. A low closing ratio means you need to work on your sales skills to convert more leads into sales.

You can do a few things to increase your chances of closing a sale with a customer. One is to build a good relationship with them and understand their needs. You can improve your business’s bottom line if you learn how to convert more leads into sales.

Average Sale Price

Businesses need to understand the average sale price to increase sales. This is the average amount of money spent per customer. 

Businesses divide their total revenue by the number of sales to calculate it. The result is the average sale price. 

This metric reveals to businesses how much revenue they can earn per customer. It also serves as a benchmark for measuring performance. 

The average sale price goes up when businesses sell more expensive items. That also includes when customers are spending more cash. 

Of course, it goes down when businesses are selling cheaper items. Plus, including when customers are spending less money. Companies can use this metric to make pricing, inventory, and marketing decisions.

Customer Lifetime Value

Customer lifetime value (CLV) is another essential metric to use. It measures the money a customer can bring a company throughout their time together. 

Companies use CLV to assess customer satisfaction and loyalty. They also use it to identify opportunities for upselling and cross-selling. 

If a business understands CLV, it can make better decisions about how to get new customers and keep old ones. They can also use it to benchmark customer lifetime value against other companies. Businesses can use these insights to improve and compete more efficiently.

Gross Margin

Gross margin is a financial metric that measures a company’s profitability. To calculate it, subtract the cost of goods sold from the total revenue. The resulting number is then divided by the total revenue. 

This percentage measures how well a company generates profit from its sales. A higher percentage means a company is more efficient in its use of resources. Thus, they’re better able to generate profit. 

This metric is vital for investors to assess a company’s financial health. Management can use it to make pricing, costs, and investment decisions.

Net Promoter Score

A Net Promoter Score (NPS) is a way to measure how likely your customers are to recommend your business to others. You can do this by having customers rate their satisfaction with your company on a scale of 0-10. Subtract the percentage who are “Detractors” (those who score 0-6) from the percentage of “Promoters” (those who score 9-10).

NPS can measure customer satisfaction and employee engagement. It is a must to keep your employees happy because this makes them more productive. 

When employees are productive, it leads to satisfied customers. A high score means a system where employees and customers can loop to each other. This benefits both groups in different ways.

There is no one-size-fits-all answer to how to improve your company’s NPS. It will vary depending on your industry and your specific circumstances. All businesses should do a few things to improve their NPS. 

The most crucial thing to do is to create an excellent corporate culture. One in which people communicate and be honest with each other. People who can voice their concerns are more likely to engage and be productive.

Second, it is vital to make sure your employees feel valued. This means that you should listen to them and consider their input. 

You should always be looking for ways to improve customer experience. This could mean making it easier for customers to check out. Another one is training your employees to provide better customer service.

Start Using Metrics In Sales Today

Do you want to increase your use of metrics in sales? If so, it’s essential to understand your sales pipeline and the factors that influence it. Use the above metrics to make changes in your business so that you can have a positive impact on your bottom line. 

Contact us today if you would like help with these metrics using our data-driven approach. We look forward to working with you!

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Mia Semel

Campaign Manager

Before graduating with a B.A. in Sustainability Studies, Mia took on multiple roles while interning at The Selling Factory, including sales development, recruiting, and leading campaigns. She is an active listener and effective communicator, specializing in fostering genuine connections and finding common ground among differing perspectives. She aims to find practical, creative solutions regarding sustainable development, biodiversity and the climate crisis.

mia.semel@thesellingfactory.com

Kira Baker

Campaign Manager

Kira recently graduated from the University of Florida and received her Master of Science in Entrepreneurship. She is passionate about helping businesses grow and connecting with new people. Some of her hobbies include traveling and hiking. She hopes to visit all of the National Parks one day!

kira@thesellingfactory.com

Jared Glosser

Vice President

After graduating from UF in 2014 with a B.A. in history, Jared started his professional career Fundraising for a non-partisan political lobby in South Florida. In 2016, Jared moved back to Gainesville to work for a non-profit, recruit students for international travel opportunities, and pursue his MBA at UF. Jared has been with The Selling Factory since 2019 focusing on operations, client onboarding, and client success.

jared@thesellingfactory.com

Ian Massenburg

Chief Operating Officer

A graduate of University of Florida (B.A. 2001), Ian Massenburg brings over 18 years of sales executive and sales management experience to The Selling Factory. Before coming on-board, Ian worked alongside Brad at Infinite Energy, and then spent his next 3 years as VP of Partnerships selling SaaS products B2B. Ian brings his vast knowledge and experience to the team and to our partner companies served.

ian@thesellingfactory.com

Damien Paulk

Campaign Manager

Damien is a University of Florida graduate that recently joined the team full time after working as a Sales Development Intern for one year. As a Campaign Manager, Damien looks forward to contributing to the growth and success of The Selling Factory. When Damien is not at work he enjoys exploring Gainesville with his girlfriend and dog or watching the Gators dominate college football.

damien@thesellingfactory.com

Brendan Viehman

Campaign Manager

Brendan graduated from Liberty University with a Bachelor of Science in Business Administration and Project Management. For the past 5 years, he has enjoyed working with blockchain technology and cryptocurrency development. In his free time, he surfs and makes personal finance videos for his YouTube channel.

brendan@thesellingfactory.com

Savannah Howard

Campaign Manager

A graduate from the University of Florida’s College of Journalism and Communications, Savannah obtained her Bachelor of Science in public relations with a concentration in French. After almost two years as a sales development intern for The Selling Factory, she joined the leadership team in 2021 taking on the role of Campaign Manager. In her free time, Savannah enjoys going to concerts and festivals and cooking for her friends and family.

savannah@thesellingfactory.com

Zack Kampf

Campaign Manager

Zack is a creative technologist with experience in advertising, event planning, and game design. He started as an SDR in 2018 and has been with TSF ever since. Upon graduating UF in 2019 he became a campaign manager and is currently seeking a master's degree from NYU. In his spare time, you can find him at the intersection of Art & Technology!

zack@thesellingfactory.com

Josiah Blakemore

Campaign Manager

Josiah has over 8 years of sales experience, worked with Brad and Ian at Infinite Energy, and also spent time selling SaaS as Director of Partnerships at SharpSpring. He’s always been very competitive and has a love for sports and games. He enjoys solving problems and coaching team members to do the same!

josiah@thesellingfactory.com

Sue-Ming Frauenhofer

Marketing Manager

Sue-Ming received both her B.S. in Psychology and M.S. in Management from The University of Florida. As a student, she took on multiple roles while interning at The Selling Factory, including sales development, marketing, and recruiting, eventually leading to her current role as Marketing Manager. She enjoys refining her taste in music and visual art, engaging in mindfulness and meditative practices, and frolicking outside with her sidekick pup.

sueming@thesellingfactory.com

Adam Grossman

Chief Development Officer

Adam is an ordained rabbi, who has founded multiple ventures focused on workforce development. Hired as CEO by a failing non-profit, in over 5 years, his ingenuity saved the organization, which led Slingshotfund.org to recognize it as one of North America’s most innovative Jewish non-profits. His expertise to identify, cultivate, and on-board talent ensures our student teams meet our partners’ needs.

adam@thesellingfactory.com

Brad Gamble

Chief Executive Officer

After graduating from UF in 1999 with a B.S.B.A, Brad Gamble has dedicated himself to sales management, branding, coaching, and building companies. He served as the VP of Sales & Marketing for Infinite Energy until 2014, when he founded The Selling Factory. He has dedicated himself to teaching critical skills to tomorrow’s leaders, and helping companies achieve sales success and revenue growth.

brad@thesellingfactory.com