In a much older article (not really that old, it’s actually this one), we talked about the five sales metrics that every manager should keep track of in the coming year. Little did we know, we’d have to write a whole new article to build on that article, because 2021 has been an incredible year.
A lot of things have changed since we wrote that article, and a few more insights have grown our whole sales team to understand that we certainly missed out on a few more critical stuff. So here are five more sales metrics that you need to pay closer attention to in 2022.
How The Pandemic Has Changed Sales
Following the recent COVID-19 incident, digital adoption heightened paces enabling consumers to purchase and sell efficiently from the comfort of their own home. In an effort to provide customers with a low cost, affordable option for buying products and services online businesses started to offer subscriptions serving as an arguably better alternative to one-time sales.
Additionally, to ensure no disruption in customer relationships as a result of purchasing policies change, successful companies decided to turn their focus towards long-term customer success through optimizing employee retention efforts.
This is exactly why the traditional methods of measuring your sales metrics and ways of tracking your sales teams’ performance is not going to work anymore. Here are five metrics you should try out instead.
The Most Important Sales Metrics For 2022
We all know what recurring revenue is. Even a 13-year-old kid with access to a Netflix account knows what a subscription means. A subscription is what turns into recurring revenue to a business. It’s as simple as that. Now, why is that important?
Whether you're a buyer or seller, recurring revenue is easy to manage digitally. For buyers, it lowers the barrier to entry and makes it easier to acquire new items at a low cost. And as you already know, if something is digitally enabled it's all the more easy to adopt by users who would otherwise need to learn how to manage something physically - which would of course take time, space and effort! Naturally, everyone is keen on adopting recurring revenue models into their existing business model.
Customer Lifetime Value
CLV is more of an estimation, or more accurately, a calculated “trust”, placed upon a customer, based on their past behaviour, to predict the amount of revenue that particular customer will be bringing to the company.
It sounds complicated but is actually much simpler than you think. Just imagine you’re running a food business. It would make sense to predict your future sales based on the revenue generated by the behaviour of a customer that keeps visiting you again and again rather than a one-time visitor, wouldn’t it?
Think about it. Which kind of customer regularly comes into your restaurant? Are they teenage kids or high profile businessmen? Do they order combos or a single cappuccino to go? Do they make payments using cash or cards? Debit or credit? Would you revenue grow rapidly if you act positively on the results of these questions? You bet!
Customer retention is another key metric that every field service manager needs at their disposal. We want to get as many new customers in the door and on a contract as possible, but it's just as important to keep the ones you've already got happy because otherwise, they'll be moving onto your competitors pretty quickly if they're not completely satisfied with your service levels.
We’re basically saying that for every month that passes without at least one invoice generated by an existing customer, you’re doing something wrong. There may be a problem with the price or quality of services offered, and until it’s solved, more people are going to go elsewhere, leaving you trying to explain why customers seem unhappy.
But the main reason why the customer retention metric is so important is that it gives you an idea of whether there's a major problem that needs fixing quickly before more customers leave.
For example, maybe there was an annual service contract renewal due but the customer hasn't contacted you yet. They've got another month to go before their current one expires but still they haven’t picked up the phone or sent in a ticket through their online system. So maybe they're not happy with something and have either cancelled or are thinking of cancelling their next year contract etc.
Early Behaviour Changes In Existing Customers
This is more like a “slow down” warning you’ll be receiving if your sales numbers seem to be going down after what seemed like a good run.
The triggers for identifying early signs of revenue loss usually follow the following models: changes in product purchases and use behaviors from normal customer behavior, purchase and use trends over the course of a set period of time. The goal is to identify red flag behaviors that if displayed repeatedly over a set period, will negatively impact revenue. The earlier you spot them the better.
If you’ve got a happier work culture, you’ve got a happier workforce. And if you’ve got a happier workforce, you have a good product/service with better sales numbers and great marketing. It all makes sense. Keep your employees happy, and the employees will keep you happy.
- The pandemic has changed the way sales is done, and sales processes are carried out
- There are five metrics you need to be sure of in 2022, for better numbers, improved customer satisfaction, and a better product
- Recurring Revenue
- Customer Lifetime Value
- Customer Retention
- Early customer behaviour changes
- Employee Retention
A Little Bit About Fieldproxy
An employee attendance management and time tracking software that fulfils all your needs is Fieldproxy - a one-stop solution to all your field service and employee tracking needs. With Fieldproxy, you can easily
- Create unique dashboards
- Identify areas of improvement
- Track resources with greater efficiency
- Create tasks for different employees and manage them seamlessly.
And that's not all. With Fieldproxy, you can do so much more. Book a demo and improve your field sales teams with just a few clicks today.
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