At Quota Factory, we view sales enablement as an aligned function of sales and marketing. It brings process, tools, technology and training together, and the ultimate goal is to drive prospects through the funnel to close at a more rapid rate. In order to measure that, you need core KPIs. It’s important to have real time context around statistical analysis to key KPIs you can manage or look at across your sales organization. These KPIs can tell you about the effectiveness of your sales enablement implementation and adoption.
1. Process Adherence
Is the sales enablement process you’ve outlined actually being followed? It’s incredibly important that you understand, at a very high level, what percentage of your salespeople are actually following the process that is outlined in your sales enablement plan, whether that’s prospecting, or selling. Best practice for our clients is a 90% process adherence rate. You could look at that as:
- 90% of the functions are done the proper way, or
- Nine out of ten salespeople are actually following your process
If you’re below that number, there’s a chance you might need to re-launch your sales enablement initiative and think about how you’re delivering it. Follow up on it in order to make sure that you get a higher rate of adherence.
If they’re following the process, you know that your salespeople are utilizing your tools and assets, and following your processes. You’ll likely hit your numbers because your salespeople are organized and using assets when they’re supposed to.
From a training standpoint, focus on the low performers. Look at process adherence by rep. Speak to the people that seem to be having difficulty following the plan and using the tools that you’ve put in front of them. Work with those individuals to make sure that they understand the importance of everything that you’re doing for them.
2. Conversion Rate
We define conversion as:
The percentage of meaningful conversations that show up to the sales forecast.
Salespeople convert about 7% of these meaningful or quality conversations to the sales forecast. Therefore, 7% of their meaningful conversations need to show up on the forecast eventually. The goal is 10%, and that’s what we require internally.
Measure this monthly. If it’s below 7%, you’re going to have to investigate data accuracy, SDR methodology, training, and look at your marketplace in general.
Conversion rate is directly related to the effectiveness of your sales enablement plan. The more your salespeople are prepared, regimented, and supported, the better their conversations. An effective sales enablement plan will result in a higher conversion rate. This leads to a bigger forecast, more closed deals, and success tied to the work you’ve done around sales enablement.
3. Database Accuracy
Our customers’ databases average about 25% garbage data. 25% of their phone numbers and email addresses are not deliverable. Additionally, contact information degrades at about 30% per year, so it keeps getting worse.
Constantly measure database accuracy. It should be no worse than 80%. Measure it every month. If you don’t, all the great work that you’re doing around sales enablement is for nothing. Your sales enablement plan is designed to support and foster fantastic activity for your salespeople, but 30% of that activity is simply wasted because the information in front of them isn’t accurate. It’s detrimental to organizations, and it’s the first place to focus to ensure that your sales organization is sales enablement ready.
Bad data affects your sales enablement efforts from equipping, training, and assessment standpoints.
- Equipping: Your job is to provide salespeople with the easiest path to closing business. That path has to start with high quality data that you’re constantly managing for them. It’s not the job of salespeople to fix this problem. It is a sales enablement, sales leadership, and a marketing leadership problem.
- Training: With bad data, 25 to 30% of your time will be spent fixing information in your database. Don’t be process adherent because you’re wasting time fixing bad data issues. Make it a key initiative so it’s not a problem down the road. If you fix bad data beforehand, you can spend more time coaching where it matters, such as how to sell to prospects live on the phone, face to face, and via email.
- Assessing: It’s crucial to assess salespeople on a level playing field. You can’t do that with bad data. 70% data accuracy is not enough to give everyone a fair shot at success.
Use these three KPIs before you start diving in and evaluating your sales enablement effectiveness. Sales enablement isn’t a checkbox that you do simply because you have to. You must focus on it, measure it, and ensure you get better at it everyday.
Get more sales tips in the RingLead ebook, Sphere of Influence Selling: An Inside Sales Approach to Crushing Your Quota.