The Metrics That Actually Drive Sales Performance

Article Summary

• Learn why high-level business results are often out of your team’s direct control and how shifting your focus to “Sales Activities” can create a more predictable revenue engine.
• Discover the breakthrough research from Cracking the Sales Management Code that categorizes 306 different metrics into Activities, Objectives, and Results to help you identify which levers actually move the needle.
• See a step-by-step example of how to transform a vague goal like “3% revenue growth” into actionable daily tasks that empower your sales and marketing teams to win.

What measures sales and marketing performance? The answer lies in performance management: designing and measuring systems that connect activities to results.

A Smarter Approach

In Cracking the Sales Management Code, Jason Jordan and Michelle Vazzana studied scores of Fortune 100 sales forces. They found 306 different measures being used to track sales effectiveness, which they categorized into three levels:

• Sales Activities (17%) – measures used to quantify and track day-to-day activity of the sales force. These metrics are highly manageable and the associated metrics can be moved, at will. Examples include, making phone calls, completing strategic account plans, visiting prospects, writing proposals.
• Sales Objectives (59%) – these measures are considered guideposts for Sales Activities to ensure that they are pointed in the right direction for Business Results to materialize. Can be directly influenced, and associated metrics can be driven by managing certain Sales Activities. Examples include new customers acquired, percentage of customer retention, and percentage of target customers contacted.
• Business Results (24%) – measures are a culmination of all the organization does. These metrics are high-level and are often influenced by functions well outside of sales – finance, manufacturing, and production. Also, these metrics are impacted by competition and the economy. These are influenced by external factors. Examples include revenue growth, percentage share of market, and gross profit.

Connecting Activities to Results

Consider this reverse-engineered example:

• Business Result: Achieve 3% revenue growth
• Sales Objectives: Acquire 4 new customers per quarter
• Sales Activities: Complete 16 additional prospecting calls per quarter

ROI measures business results, but sales performers often have little control over these. Measuring activities instead gives teams clear, actionable metrics.

Jordan and Vazzana discovered, for sales and marketing performers, business results are out of their control. There are several variables that can be discussed, none of which they don’t control: competitive position, service quality, pricing and terms, availability, economic cycles, and product function/features.

From Cracking the Sale Management Code, the authors have identified five key processes that are under the control of sales and marketing performers, along with the purpose of their metrics and sample metrics that will measure performance leading to accomplishing Sales Objectives.

Measuring sales activities at each stage gives performers control while aligning efforts with objectives and results. If you want clarity between what your team does and the outcomes you aim for, performance management gives you the roadmap.

If you’re looking to shape a stronger sales and marketing strategy, a marketing consulting partner can help you connect activities to measurable results and grow your business efficiently.