With the ever-changing landscape of marketing, it’s no surprise that new terms are constantly being coined to describe various aspects of the field. Sales enablement is one such term added to the field of numerous strategic initiatives that have become increasingly popular in recent years.
It may be a relatively new concept, but it’s already having a major impact on the way companies do business. By investing in sales enablement, businesses can boost their bottom line and get ahead of the competition.
In this article, we’ll dive into the concept of sales enablement and explore all necessary data points of this marketing tool so you can put in your best effort to offer value for services for customer success.
What is Sales Enablement?
Sales enablement is the process of equipping and empowering sales teams with the resources and knowledge they need to sell more effectively. This can include everything from providing salespeople with access to customer data and market intelligence, to giving them the tools and training they need to create strategies and close deals.
By investing in sales enablement, companies can improve their overall sales performance through a well-equipped and knowledgeable sales force, making it a critical part of any organization’s growth strategy.
Why Does Measuring Sales Enablement Matter to a Business?
Sales enablement is different from sales operations. Sales enablement is critical to any business because it provides the metrics needed to track whether or not the average purchase is being generated into effective sales.
By tracking sales enablement, businesses can make necessary changes to improve their sales process and increase revenues.
At a closer look, sales enablement is the strategic process of aligning an organization’s sales team with its marketing efforts in order to increase selling efficiency and effectiveness.
By measuring sales enablement, organizations can align the marketing and sales team’s efforts to identify gaps in sales training and development, optimize their sales processes and increase sales velocity, and make better use of their marketing materials.
Additionally, measuring sales enablement can help organizations improve their customer relationships and reduce customer churn. Ultimately, measuring sales enablement can lead to increased revenue and profitability for an organization.
What are Sales Enablement KPIs?
Sales KPIs are key performance indicators that organizations use to measure the effectiveness of their ongoing sales enablement program and initiatives. They should not be mistaken with Objectives and Key Results or Management by Objectives (OKR vs MBO).
By tracking these KPIs, companies can ensure that they’re providing sales reps with the resources and support they need to be successful. Additionally, monitoring sales KPIs can help organizations identify sales stage areas where improvements can be made.
How Do You Measure Sales Enablement?
Most organizations have some sort of sales enablement function, but too often, struggle to measure its effectiveness. Without proper measurement, it’s difficult to show the impact that sales enablement has on revenue, retaining existing customers, and other key business metrics.
The first step in measuring sales enablement metrics for any business is to foremost identify business goals and align them with appropriate growth metrics.
Say, for example, the goal is to increase sales by 10% in the next quarter.
The company’s marketing, product, and sales teams should all have input on what key metrics will best help them meet that goal. Once those are identified, they can be used as leading indicators to track progress towards the goal.
There are a few different ways to measure sales enablement results. The most important metric is usually top-line income growth. Other important measures can include increases in deal size, win rate, and average selling price.
Additionally, you can track the number of deals closed by sales reps who’ve received enablement training, as well as the number of product or service demo requests and webinar registrations coming from the sales team.
Once you have a grasp of the necessary metrics, follow it up with KPI tracking and measuring using the appropriate tools and platforms.
Want to track your sales enablement KPIs and increase your revenue?
What Are The Crucial KPIs For Sales Enablement?
1. Sales productivity
As any sales leader knows, sales productivity is a key metric to track. After all, it’s the sales reps that drive revenue for the business. But sales productivity is not just about how many deals a rep closes.
One of the most important KPIs to track is sales rep performance. This includes metrics like win rate, conversion rate, quota attainment, average deal size, and length of the sales cycle. By tracking these sales enablement activities, you can get a good sense of which reps are over-performing and which ones might need some help.
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Sales rep performance
As a sales rep, it’s important to be aware of the sales KPIs that your business is tracking. After all, your performance in the sales process can have a direct impact on these numbers.
For example, if your business is tracking the average closed sale, then it’s important to make sure that you’re closing as many deals as possible. Similarly, if your business is tracking how many leads you generate then you’ll want to focus on ensuring high-quality leads.
By understanding the sales KPIs that your business is tracking, you can adjust your sales strategy accordingly and ensure that you’re making the most impactful contributions to the success of your organization.
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Win rate
Win rate is simply the percentage of sales opportunities that are successfully closed. Tracking this KPI can help sales leaders to identify areas where sales reps might be struggling, and it can also provide insight into which sales strategies are most successful, thereby leading to employee satisfaction.
By tracking the win rate, sales leaders can ensure that their reps are always working to close more deals and improve sales efficiency.
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Lead conversion rate
When it comes to sales KPIs, businesses should keep a close eye on their lead conversion rate. This metric measures the percentage of sales leads that are converted into closed deals, and it can provide valuable insights into the effectiveness of your sales team.
If your lead conversion rate is low, it may be indicative of problems in your sales process or buyer’s journey. By tracking this metric closely, you can identify areas for improvement and make the necessary changes to boost sales.
In addition to lead conversion rate, businesses should also track sales target attainment and quota attainment. These KPIs will give you a better understanding of how your sales team is performing and whether or not they are meeting your expectations.
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Average deal size
When it comes to sales KPIs, the deal size is an important metric to track. After all, the whole point of sales enablement is to help sales reps close more deals – and bigger deals mean more revenue for the company.
There are a few different ways to calculate it, with the most common method being to simply take the total value of all the products or services sold in a particular transaction. However, you can also calculate it by taking into account the number of qualified leads or sales reps involved in the sale, or by tracking how close the deal is to the sales rep’s quota.
Whatever method you use, tracking deal size is a valuable way to measure sales success. By understanding what average deal size looks like for your company, you can set realistic goals and objectives for your sales team. And if you see a dip in average deal size, it could be a sign that something is wrong with your sales funnel – giving you a chance to fix the problem before it becomes a bigger issue.
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Sales cycle length
Sales cycle length is an accurate metric that marketing and sales teams use to identify, qualify, and close new customers. The sales cycle begins when a lead is generated and ends when the deal is closed. The length of the sales cycle varies depending on the products or services being sold, the industries being served, and the sales methods being used.
However, the sales cycle length is an important metric for sales and marketing teams to track because it can help them to identify bottlenecks in the customer journey and optimize their sales process.
By understanding the average sales cycle time for their business, they can set realistic goals for their sales team and measure their progress against those goals. Additionally, tracking sales cycle length can help businesses identify trends over time and make adjustments to their sales strategy accordingly.
2. Customer churn rate
Churn rate is a sales metric that measures the number of customers who stop doing business with a company over a given period of time. It’s important to sales enablement because it can have a direct impact on sales growth.
Sales activities that engage buyers and help them see the lifetime value of your products or services can reduce churn and increase sales. Conversely, sales activities that fail to engage buyers or provide value can lead to higher churn rates and lost sales.
Customer churn is an important metric to track because it can indicate whether or not your sales team is effective at retaining customers. This metric will give you a good indication of whether or not your sales team is delivering on its promises.
3. Training effectiveness
Training effectiveness can be measured in a number of ways, but one of the most important is to track how quickly new hires are able to ramp up and start selling effectively. This metric will give you a good indication of how well your training program is preparing new hires for success in their role.
New hire productivity is another key metric to track, as it will show you how quickly new hires are able to start generating results. This is important because it can help you identify any areas where your sales enablement program may need improvement.
Track your sales enablement KPIs to ensure your team is performing at its best!
4. Customer retention rate
Customer retention rate is a powerful indicator of the health of your business and its sales enablement efforts. There are a number of factors that can impact customer retention, from the quality of your product or service to the strength of your sales team.
By tracking this metric, you can get a clear picture of which areas are performing well and which may need improvement. Additionally, customer retention is often closely tied to other important KPIs such as quota attainment and gross revenue. As such, it is an essential metric for any marketing team to track.
5. Customer satisfaction score
A customer’s satisfaction score is one of the most accurate metrics that businesses should track in order to assess sales enablement strategies. A company’s Net Promoter Score® (NPS®) measures customer experience and predicts sales growth.
It’s used as a global benchmark for customer satisfaction, engagement, and loyalty. Promoters are loyal enthusiasts who keep coming back and referring others, resulting in strong word of mouth for your business.
A company’s NPS can be used as a leading indicator of sales success because it tells you how likely your customers are to buy from you again or recommend you to a friend or colleague. Businesses with high NPS scores have been shown to grow 2x faster than those with lower scores.
You can use your NPS score to track progress over time, compare yourself against competitors, and see which sales enablement strategies are working best for your business. Ultimately, tracking customer satisfaction scores is an essential part of sales enablement because it helps you identify areas where you need to improve in order to drive sales growth.
6. Revenue growth
It is one of the most important sales KPIs that a business should track. After all, total revenue is the bottom line for any business. However, it can be a difficult metric to accurately track. This is because it can be influenced by many factors, including changes in pricing, product mix, and the overall economy.
As a result, businesses need to be careful when interpreting income growth data. However, if sales enablement outcomes are tracked accurately, businesses can get a good sense of how their efforts are impacting total revenue. By tracking total revenue growth, businesses can ensure that their sales enablement strategies are truly making an impact.
7. Engagement levels
In order to know what sort of tools and resources your sales team needs, you first need to understand their level of engagement. Are they highly engaged, meaning they’re regularly using the materials you provide and seeing results? Or are they barely engaged, meaning they could be doing more to improve their performance?
There are a number of different KPIs you can track to get a good idea of your team’s engagement levels. For example, you can track how often they’re using the materials you provide, whether they’re completing training modules, and how often they’re participating in coaching or mentorship programs.
You can also track their success rates in terms of both closed deals and pipeline growth. By tracking these KPIs, you’ll be able to get a good sense of which areas your team is excelling in and which areas could use some improvement. And that knowledge will help you fine-tune your sales enablement strategy so that your team is always operating at peak efficiency.\
8. Customer acquisition rate
The customer acquisition rate is one of the most important sales KPIs that businesses should track. This metric tells you how many new customers you’re acquiring and is a good indicator of your business’s health.
There are a number of factors that can affect your customer acquisition rate, from the effectiveness of your marketing campaigns to the quality of your product. By tracking this metric, you can get a better understanding of what’s working well and what needs to be improved.
Additionally, it can help you make decisions about where to allocate your resources in order to maximize growth.
Final Thoughts on Sales Enablement KPIs You Should Be Tracking
Your company needs to both sales and product enablement. A business should measure various sales KPIs to ensure that its sales enablement efforts are consistently aligned with business goals and objectives. By tracking KPIs, businesses can identify opportunities for improvement and make necessary changes to their sales enablement strategy.
Furthermore, measuring KPIs can help businesses benchmark their performance against other businesses in their industry. Ultimately, tracking KPIs is essential for making informed decisions about sales enablement and ensuring that efforts are focused on maximizing sales.
If you’re still not sure where to start or require some out-of-the-box thinking to get started, Growth Hackers is at your service. As a successful digital marketing brand that has helped businesses across the globe make $110+ million in sales, you can rely on our trusted services to give you the business results you need, sustainably and scalable.
Contact Growth Hackers and let us know about your specific goals so we can customize the perfect solutions for your business needs today.
