Using sales metrics to evaluate team performance

By Carroll Consulting Group. 

Assess sales team performance using fundamental metrics to your advantage.

For any company with sales personnel, having a robust set of metrics (KPIs) tailored to everyone is crucial. These metrics should be adjusted according to the salesperson's experience and tenure, with specific metrics for new hires during their initial 60 days. As time progresses, these metrics should evolve until the salesperson reaches their optimal sales level. 

Sales metrics for roofing salespeople are customized to the unique demands of the roofing industry. Here are some fundamental metrics commonly employed to assess sales performance in the commercial roofing sector: 

1. Total sales revenue: Reflects the overall revenue generated by the salesperson from commercial roofing projects, providing a clear insight into their contribution to company revenue. 
2. Number of roofing contracts closed: Indicates the salesperson's proficiency in converting leads into paying customers by successfully closing commercial roofing contracts within a defined period. 
3. Average deal size: Evaluates the salesperson's ability to negotiate profitable contracts and sell higher-value roofing solutions by determining the average value of each closed commercial roofing contract. 
4. Sales growth rate: Measures the salesperson's capability to increase sales revenue from commercial roofing projects over time, indicating their effectiveness in expanding market share and boosting revenue. 
5. Customer acquisition cost (CAC): Assesses the efficiency of the salesperson's efforts in acquiring new commercial roofing customers by comparing the cost associated with customer acquisition to the revenue generated from new customers. 
6. Customer retention rate: Indicates the salesperson's adeptness at building strong customer relationships and ensuring satisfaction, vital for long-term business success, by measuring the percentage of retained commercial roofing customers over a specific period. 
7. Conversion rate: Evaluates the effectiveness of the sales process and the salesperson's ability to convert leads into closed contracts by calculating the percentage of leads or opportunities resulting in closed commercial roofing contracts. 
8. Lead reneration and pipeline metrics: Tracks metrics such as qualified lead generation, sales pipeline size, and pipeline velocity to assess the salesperson's prospecting efforts and proficiency in managing the sales pipeline. 
9. Profitability metrics: Measures the profitability of the sales generated by the salesperson through metrics such as gross profit margin, contribution margin, and gross profit per roofing project, ensuring alignment with the company's financial objectives. 
10. Customer satisfaction and referrals: Gathers feedback from commercial roofing customers on their satisfaction with the sales process, installation quality and overall experience. Satisfied customers are more likely to provide referrals, contributing to future sales opportunities. 

By monitoring these metrics, commercial roofing companies can effectively evaluate the performance of their sales teams, identify areas for improvement and make data-driven decisions to drive growth and profitability within the business.