Coaching has a profound impact on sales revenue, but how can you measure the efficiency of your coaching more definitively? Analyzing your sales team’s performance using metrics like KPIs, sales activity data, and both quantitative and qualitative feedback is a great way of determining whether or not your coaching methods are working for your team.
Measuring performance is imperative for sales teams. It allows leaders to assess and adjust internal structures like coaching, mentorships, and training and focus on a rep’s individual growth. As a coach, you need to truly acknowledge how the team is performing and where you can have an impact on their improvement.
Breakdown of sales performance metrics
There are multiple ways to determine whether or not coaching your sales team has been effective. Sales metrics are one of the most common and informative. These are measurements used to track performance through data.
Using sales data will give you a full picture of what’s working and what needs improvement. Automation will help to organize sales metrics on a macro and micro level. This will allow you to measure success for your team overall and individual rep performance.
Here are some examples of sales team performance metrics:
This includes both the Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR), as well as total revenue for each month, quarter, or year.
Monthly sales growth
These measurements include reports of growth in the number of sales within a certain time frame. There are specific factors like the number of new versus existing clients and churn rates.
These metrics are the main foundation of the sales team’s day-to-day role. Sales activity data includes tracking actions like:
- Outreach calls and emails
- Scheduled meetings
- Demos booked
- Sales content usage
Opportunity win rate
This is also known as the opportunity-to-win ratio, which measures the number of deals closed against the total number of open opportunities. This helps you see if there are gaps within your sales cycle or if your team is losing more open opportunities than closing them.
Average deal size
This measures the average selling price. This helps you see if your reps are successfully upselling or landing larger clients on the team level. This insight also helps with determining whether or not your marketing collateral is working properly.
Sales Development Reps are typically measured using outreach activity data, but also through metrics like a lead quality ratio. This ensures the SDR team is focusing on the quality of meetings instead of simply the quantity booked. This ratio can also provide insight into whether you need to focus more on lead qualification coaching for your SDR team.
Account Executives are typically measured by metrics like forecasting, team quota attainment, and average sales cycle length. In addition, quote-to-close ratios for the team can help you determine where your reps may be lacking — either in expertise, onboarding, training, or resources.
Personal quota attainment
Use this metric to track if the rep is reaching their individual sales goals. If they are struggling to meet them, reassess how they are approaching their selling and focus on coaching their specific issue.
Sales pipeline metrics
These are similar to the Team KPIs but on an individual level. These metrics include measurements like:
This includes their individual quote-to-close ratio for insights into how they move through the sales cycle and if there are any specific challenges throughout the process.
The average length of the sales cycle
This metric will help you see if your rep is having trouble moving through the sales cycle at an efficient pace.
Number of opportunities
This measurement tells you if they are not working with enough opportunities in their pipeline or if they do not have enough high-quality leads.
Individual Conversion Rate
This helps you recognize if your reps are having difficulty converting a lead or closing their sales.
With this data, you can ask yourself if the rep is improving year over year. If not, do they need further coaching on how to develop and grow in their role?
If any of these metrics are consistently performing below average, then it may be time to reevaluate your coaching methods. This may include adjusting your approach to adapt to the individual or you may need to invest in coaching software to provide new resources to your sales team.
How to measure sales team performance using metrics
Once you have the tools in place to measure sales team performance, you can determine how best to use those data points to track your coaching efficacy. Here are some ways to integrate sales metrics with your coaching performance:
Set coaching goals
Apart from ensuring consistent facetime through 1:1s and performance reviews, both you and your reps need to set goals. For your reps, implement goal-attaining coaching methods —like SMART goals. Then use the sales performance metrics to see if they are reaching their individual targets.
For example, if you and your rep are working towards a SMART goal of making quicker sales this quarter, continually check in on their average sales cycle length numbers to see if they are successfully shortening it with each sale.
When it comes to your goals as a coach, include self-assessment check-ins to adjust your objectives accordingly. Ask yourself considerate questions like:
- Am I being consistent with coaching all my reps?
- Do I offer accountability and follow-through?
- How much time do I set aside to coach? Is it enough?
- Am I utilizing the right metrics to determine effectiveness?
- Where can I improve?
Measure all goals
As a coach, it’s important to set both short and long-term goals. This way you are coaching your reps through their daily challenges, but are also working on their development and growth at the same time. According to research by Gallup, 87% of millennials — currently the largest segment in the workforce —say that professional development or career growth opportunities are very important to them in a job.
Based on your conversations, track their progress and behavior changes to see if they are incorporating your suggestions and notes. Document any challenges and notice any improvements in those areas. You can start by noting the following:
- Are they improving in a certain area?
- Are they overcoming their challenges?
- How often am I checking in on their progress?
- Do I need to adjust the way I am coaching to better fit their needs?
- Are they taking the initiative to reach their long-term goals?
Let’s say you have an AE that has a short-term goal of wanting to improve its presentation skills and has also expressed interest in becoming a sales leader in the future.
For their short-term goal, you can use video-recording software to provide tangible feedback and space for self-assessment. In the long-term goal, you can use qualitative data — observing whether they are taking any additional training courses or attending conferences to help build their leadership skills. You can also ask yourself if you are adequately providing any opportunities for them to learn internally — setting them up with a mentor or having them shadow other sales leaders.
Build the dashboard
If you want to utilize sales team performance metrics in your coaching, then you will need to have a full picture of the team’s activity. Invest in a reliable reporting system so you can always have a centralized hub of information and insights.
Dashboards help determine how the team is performing overall — through forecasting and YOY comparison data — as well as tracking individual progress and sales activity information. In addition, a centralized dashboard is the most streamlined and accurate way to see overall achievements, pipeline trajectory, lost opportunities, and individual quota attainment.
All of these tools directly correspond to how you coach your team and if your current method is having an impact on their performance.
Automate the system
Automation is important for analyzing performance and helps make coaching more productive. Automation software includes AI-powered features that can be utilized across the entire sales organization — making it an advantageous option for coaching all styles of sales reps.
For example, if you have an underperforming rep, automation can be helpful in determining the root of their challenges. Shadowing, conversation transcription, client engagement metrics, and AI-scoring are just a few automation examples for understanding the specifics of the problem and then offering an applicable solution.
Make sure you provide time to each of the salespeople to address their goals and where their performance could be stronger or improve. This is best done through feedback sessions, 1:1s, and performance reviews. However, you should also include room for self-assessment opportunities.
Many automation software includes AI-based feedback which the rep can use to focus on specific areas of improvement. Automation also allows for reps to individually track their progress. For you, as their coach, automation software helps to receive quantitative data on their improvements.
As a coach, it’s also important to receive feedback so you can continue growing in the role. This means open communication with your reps, along with continual education and attending sales management training programs. Invest in growing as a coach and you’ll see the positive impact it has on yourself and the rest of the team.
When it comes to being an effective coach, it’s imperative to incorporate sales metrics to consistently track performance. Also, ensure that everyone is on their best individual path towards the team’s collective goals.
When analyzing your sales team's performance, it’s important to remember the nuances of your sellers. While sales metrics alone are incredibly effective tools for determining if your coaching is successful, you also need to understand your reps on an individual and personal level — make sure to also provide your reps with reliable and clear insights, as well as honest feedback and encouragement.