Leading indicators. Sales: don't wait, act
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Technologies similar to Cookies
Similar technologies are technics or tools, using certain characteristics to identify devices so that visits to a website can be analyzed. It includes, for example, HTML5 local storage, local Shared objects, fingerprinting techniques, tracking pixels and plugins.
For ease of reference, cookies and similar technologies are referred as "Cookies".
Usage of Cookies
Cookies enable us to provide users with certain features and supply us with information about website visits.
We also make use of cookies to make our site more user-friendly, to better understand our existing and prospective customers, including associating a user with different devices and browsers that they may use for online targeting and advertising purposes.
Leading indicators are often used to identify potential business problems. Many problems can be avoided by being proactive in sales management, taking proactive measures and anticipating demand, sales slumps and seasonal fluctuations.
For example, it is not efficient to analyse the sales process by revenue. Leading indicators allow you to monitor the activity of potential customers in real time, assess the situation and adjust marketing activities.
How to understand the cause of low sales and what to do about it?
Selling is a repetitive process that consists of typical stages. By describing each stage in detail and paying attention to the customer's target actions, you can highlight the most important ones and create a list of leading indicators. These will help answer the questions: Why aren't we selling enough? What should we do to raise our profile? How can we sell more?
Paradoxically, but very often, the wrong sales process becomes the main brake and limitation in the business. There are many reasons for this: unclear value of the product to the audience, insufficient understanding of customer needs, bundling problems to attract leads, weak marketing, lack of a system to track results.
Leads and enquiries. Forecasting
One of the most important leading indicators in sales is the number of leads and enquiries. If these indicators are growing, your product, service or online shop is interesting and in demand. But don't rest on your laurels: analyse the quality of leads as well as the quantity. By understanding which channels or marketing strategies are generating the most leads, a company can optimise its efforts.
Lead conversion rates
This metric shows how successfully leads are being converted into active customers. If the conversion rate is lower than expected, it may prompt the company to rethink its marketing, advertising and promotion strategy.
Platform and social media activity
By tracking the growth in the number of subscribers, likes, comments and general activity of the target audience, it is possible to adjust work with customers, publish interesting content, organise promotions, develop systems of discounts, bonuses and create exclusive offers for regular customers. User activity and response is an excellent indicator of the effectiveness of marketing campaigns in general. If there is no activity, demand will decrease.
For example, it is not efficient to analyse the sales process by revenue. Leading indicators allow you to monitor the activity of potential customers in real time, assess the situation and adjust marketing activities.
How to understand the cause of low sales and what to do about it?
Selling is a repetitive process that consists of typical stages. By describing each stage in detail and paying attention to the customer's target actions, you can highlight the most important ones and create a list of leading indicators. These will help answer the questions: Why aren't we selling enough? What should we do to raise our profile? How can we sell more?
Paradoxically, but very often, the wrong sales process becomes the main brake and limitation in the business. There are many reasons for this: unclear value of the product to the audience, insufficient understanding of customer needs, bundling problems to attract leads, weak marketing, lack of a system to track results.
Leads and enquiries. Forecasting
One of the most important leading indicators in sales is the number of leads and enquiries. If these indicators are growing, your product, service or online shop is interesting and in demand. But don't rest on your laurels: analyse the quality of leads as well as the quantity. By understanding which channels or marketing strategies are generating the most leads, a company can optimise its efforts.
Lead conversion rates
This metric shows how successfully leads are being converted into active customers. If the conversion rate is lower than expected, it may prompt the company to rethink its marketing, advertising and promotion strategy.
Platform and social media activity
By tracking the growth in the number of subscribers, likes, comments and general activity of the target audience, it is possible to adjust work with customers, publish interesting content, organise promotions, develop systems of discounts, bonuses and create exclusive offers for regular customers. User activity and response is an excellent indicator of the effectiveness of marketing campaigns in general. If there is no activity, demand will decrease.
Customers: Feedback
A user finds a product they're interested in on a retailer's website and starts scrolling through pages of reviews. He may be interested in reading all the reviews in a row, but most likely he is looking for answers to specific questions that interest him. Customer feedback, reviews and reactions can reveal the strengths and weaknesses of a company's product or service. Using this information proactively can allow a company to make adjustments before negative feedback starts to affect sales.
Questions from the salesperson, created with a single template, help the user find the answer and topic they are looking for more quickly. Numbers make content more meaningful and easier to read.
People: training and development
Sales effectiveness is directly related to the level of staff training. Sales scripts standardise the negotiation process and simplify the work. The effectiveness of one or another part of the script should be tested at each stage of the sales funnel. Scripts should be constantly tested and adjusted. A quality script includes: background, open questions, product presentation, objection handling algorithms. And let us not forget that a well-written sales proposal is half the success of any sale.
KPIS
Key performance indicators lose their effectiveness without systemisation and tracking of results. Sales management requires constant monitoring of key performance indicators (KPIs). Analysing this data helps to identify trends, predict changes and adapt strategies to real market needs.
Companies that actively use leading indicators can react quickly to changes and market dynamics and track the reactions of competitors and consumers.
Leading indicators for measuring sales effectiveness (telephone sales)
Leading indicators to measure sales performance Online shop (website)
Key indicators to measure sales performance. Marketplaces
A user finds a product they're interested in on a retailer's website and starts scrolling through pages of reviews. He may be interested in reading all the reviews in a row, but most likely he is looking for answers to specific questions that interest him. Customer feedback, reviews and reactions can reveal the strengths and weaknesses of a company's product or service. Using this information proactively can allow a company to make adjustments before negative feedback starts to affect sales.
Questions from the salesperson, created with a single template, help the user find the answer and topic they are looking for more quickly. Numbers make content more meaningful and easier to read.
People: training and development
Sales effectiveness is directly related to the level of staff training. Sales scripts standardise the negotiation process and simplify the work. The effectiveness of one or another part of the script should be tested at each stage of the sales funnel. Scripts should be constantly tested and adjusted. A quality script includes: background, open questions, product presentation, objection handling algorithms. And let us not forget that a well-written sales proposal is half the success of any sale.
KPIS
Key performance indicators lose their effectiveness without systemisation and tracking of results. Sales management requires constant monitoring of key performance indicators (KPIs). Analysing this data helps to identify trends, predict changes and adapt strategies to real market needs.
Companies that actively use leading indicators can react quickly to changes and market dynamics and track the reactions of competitors and consumers.
Leading indicators for measuring sales effectiveness (telephone sales)
- List of companies to call
- Calls (number)
- Confirmed contacts / decision makers
- Number of sales pitches sent
- Number of meetings / product presentations
- Invoices issued (number)
- Number of payments
- Number of closed transactions (sales)
Leading indicators to measure sales performance Online shop (website)
- Searches (number)
- Transitions to capture form (number)
- Confirmed leads (number)
- Emails sent/opened (volume)
- Orders in basket (number)
- Invoiced (number)
- Payments (number)
- Number of completed transactions (value)
Key indicators to measure sales performance. Marketplaces
- Number of views of the map in the marketplace storefront
- Number of card conversions
- Number of orders transferred to basket
- Number of orders placed
- Number of orders received by the customer
- Number of product reviews
- Number of returns within 21 days
Predicting today - looking to the future
Thus, leading indicators are metrics and data that, in the context of sales management, help companies understand what steps they need to take to improve results.
Fincraft Capital s.r.o. specialists work with commitment, create product-specific scripts using various methods and systems for building sales processes and develop scripts for sales teams. For partners and clients, Fincraft Capital selects and implements systems for monitoring and tracking early indicators based on search query data analysis and social media trend monitoring.
Thus, leading indicators are metrics and data that, in the context of sales management, help companies understand what steps they need to take to improve results.
Fincraft Capital s.r.o. specialists work with commitment, create product-specific scripts using various methods and systems for building sales processes and develop scripts for sales teams. For partners and clients, Fincraft Capital selects and implements systems for monitoring and tracking early indicators based on search query data analysis and social media trend monitoring.