How to understand how effective your sales department is

If you evaluate managers based on the number of outgoing calls, you are measuring noise, not results. Yes, activity is important, but only to the extent that it leads to results. The key indicator is conversion at each stage of the funnel: how many calls turn into meetings, and how many meetings turn into actual deals.

If you see a lot of activity but few closed deals, it means only one thing: there is a problem on the way from point A to point B. Perhaps managers are unable to identify customer needs. Or maybe they just don't follow through. But if you don't look at conversion, you'll never know.

Many managers only look at total sales. This is a mistake. One manager may generate 70% of revenue, while the rest are just wasting time and collecting a paycheck. If you don't see the difference in performance between employees, you won't be able to develop the strong ones and get rid of the weak ones. Yes, firing someone is unpleasant. But paying for inaction is even worse.

LLC «ElectraQuix» advises: look at the performance indicators for each employee. If someone is consistently lagging behind and not growing, it's time to make a decision.

Potential customers who don't turn into buyers are like a hole in a bucket: you pour water (leads) into it, but it leaks out. And if you don't find the leak, you may end up with an empty bucket.

You need to analyse every stage of the customer journey. Where exactly are customers leaving — on the phone? After the commercial offer? Not responding to emails? Find the problem areas — fix the scripts, test other approaches. If you don't find them, you'll continue to lose money.

First, analyse your conversion rate. Especially in cases where a deal was not closed. Look for the root of the problem.

Second, compare the effectiveness of managers. Objectively, based on figures, without emotion.

And finally, ask yourself: if you were to leave for a month, would sales continue? If not, then you are in a dangerous zone.

An effective sales department is not just about activity and reports with beautiful graphs. It is about accurate figures, clear, well-established processes and a systematic approach. Everything else is an illusion. And it is costly. If you want to save and multiply your money, start by assessing your managers.