A Sales Dashboard is a great tool, and you can use it to get 2018 off to a great start. Whether you hit your sales targets in 2017 or missed them by a mile, you can launch 2018 with a focused plan and a proven tool to measure your plan: The VoIP Sales Dashboard.
You know the concept of a Dashboard -- it’s your indicators. Two great examples of this in real life are your car and your doctor. You’re familiar with your car’s dashboard -- all of your key indicators in one place - speed, temperature, RPMs, etc. When you go to the doctor, s/he can assess your health by measuring a few vital signs -- height, weight, blood pressure, temperature. We want to do the same for your sales team. In business, those are Key Performance Indicators (KPIs), or metrics.
How do you put together your company’s Sales Dashboard? You need to identify your metrics, set goals for the new year, and post your Dashboard where you (and your team) can see it. You can do two versions: one for your whole team and one each rep can use. With both of these, it becomes very easy to measure each rep (privately) against company performance. For example, if your overall Close Rate is 40% on Opportunities, and one of your reps is closing 25%. Right there, you have an opportunity to make a change (coaching, training, personnel) that will grow your business.
Let’s look at building your Sales Dashboard:
- Identify your Sales KPIs. What numbers are most important to your sales success? Think of your company’s vital signs. It’ll be different for each unique business, but use these to get started:
- Qualified Lead Percentage: The number of leads that turn into Sales Opportunities as a percentage of Leads. This number is the health indicator for your prospecting and marketing activities.
- Close Rate: The percentage of opportunities that turn into new business (either new customers or new business on existing customers). This shows you how effective your sales program is. You can also look at Conversion Rate, which is the number of leads that turn into customers.
- Proposal Numbers: Look at Proposed Revenue per User (on new accounts) and Proposal Amounts (average and monthly total). Just like ARPU (see below), you should measure what your team is proposing on new accounts, overall and per user. Typically, you’ll want 3.5 times your target sales numbers in new proposals. You can also measure the Age of your proposals, from the time that either the Lead or Opportunity was created to the time it closed (won or lost). Typically, I don’t put Age on the Dashboard, but you can.
- Activities: Identify the activities behind new leads, as a company and per rep. Identify level of sales and marketing activities will continue to feed the sales funnel and ensure that you meet these target numbers.
- Set goals for the KPIs you identified for 2018. First, go back through your 2017 data and measure the metrics you selected. Your 2018 target goals will launch from the 2017 year-end positions. Be realistic here. It’s great to have stretch goals (that shoot for the stars), but make these achievable.
- Post it, Keep it Updated. The old saying, “What gets measured gets managed,” holds here. When you literally post your Dashboard around the office, or at least up in your office, you will naturally lead your sales team toward achieving those numbers. Print it out and post it.
I’ve been teaching and using The Dashboard since 2004. It is amazing to see the impact it can have on the success of a business by just setting realistic goals and actively measuring them. It will affect your sales meetings, leadership meetings, the way you negotiate with vendors, and all aspects of your business.
Something else to consider: You can use the Dashboard for your overall business success. Find the KPIs that define your success, measure those, set targets, and post this Dashboard where you and your team can see it. Keep it updated. Consider these metrics for the business:
- Average Revenue per User and Number of Users (ARPU): This is your revenue equation. Alternately, you can use Average Revenue per Account and Number of Accounts.
- Financial Numbers: Gross Profit Margin, Net Profit Margin, EBITDA. EBITDA is a must if you’re looking to be acquired. Otherwise, focus on Gross Profit Margin and/or Net Profit Margin. Note: make sure you understand the difference between markup and margin!
In January, Pitch will be doing a webinar with VoIP Innovations on this subject. Keep an eye out for more info from VI, sign up, and we’ll walk you through setting up your own VoIP Sales Dashboard. If you can’t wait, contact Stuart at (855) 748-2426 or firstname.lastname@example.org.
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