There are so many tools to track sales and all the elements of a business. Good, well-run companies will be able to utilize those tools to improve relationships, maximize time, increase profits, and decrease production costs. Such aspects of a business could fall under what is known as sales tracking.
Definition
Sales tracking is the combination of stages from where a person becomes involved with a business to when they become a customer. It covers communication as well as the financial aspects of the transaction. Additionally, monitoring sales can benefit overall sales and the previously-referenced elements of production.
How to Track Sales Efficiently
Companies that implement plans have a higher chance of decreasing issues while maximizing resources. Members of sales tracking are often referred to as ‘leads.’ In order to track sales efficiently, businesses should create a plan that follows these basic stages:
- Recognize the target audience.
- Know where leads can come from.
- Create steps to identify where leads are during the process.
- Identify points of communication.
- Establish metrics for consistent measurement and monitoring.
Measuring Metrics
Having metrics in the sales tracking process is important because they keep a business on track. Businesses should value and interact positively with leads every step of the way but, having metrics to measure is equally important. Well-run businesses understand that there should be a balance of focus between the professional and personal elements of sales tracking. Regarding the professional elements and metrics specifically, there are a few influential ones to keep track of:
- Overall sales in a certain time period
It could be monthly, bi-annually, or annually. Grouping sales could give businesses an idea of their performance.
- Sales per lead
Efficiency in gaining sales for each lead, as well as the number of sales per lead, is something that could help significantly. Improving business relationships with leads that have the most sales will increase general sales for the business.
- Average sales time
Tracking how long it takes for a lead to turn into a customer can help businesses improve their sales tracking plan. Keeping sales times down is beneficial to maximizing time and resources.
- Sales per customer type
The primary types of customers are new and recurring. Good businesses will have both, which sales tracking can break down the statistics of. This process can identify through which customer type the most sales come from. It also could list create detailed lists of the money it costs a business to gain new customers and maintain recurring customers.
Summary
Businesses with plans which utilize the data available to them have the best chance of success. Sales tracking, when done right, leads to an advantage when it comes to the business’s industry. Some industries are extremely competitive, thus making success more difficult to obtain. The implementation of effective sales tracking through the 5-step process above, along with measuring the mentioned metrics, will improve business relationships as well. A business’s professional reputation is important in any industry, but maintaining a good one can be hard to do.
