How to Audit Sales: Measuring and Tracking Sales Results
by gardenpatch Insights on Jan 25, 2023 9:00:00 AM
Imagine trying to drive a car without a dashboard. You would have no way of knowing how fast you're going, how much fuel you have left, or whether your tires are properly inflated. Similarly, a business without a sales audit is like a car without a dashboard - it's operating blindly, with no visibility into how well it's performing or where it needs to improve.
It's no surprise that converting leads into customers is a top priority for 74% of companies. After all, what's the point of generating leads if you can't turn them into paying customers? But let's be real, turning leads into customers is no walk in the park. It requires a well-oiled sales machine, complete with top-notch sales processes, marketing strategies, and internal processes.
In this blog, we'll explore the importance of conducting a sales audit and the benefits of measuring and tracking the results. By the end of this blog, you'll not only understand the importance of conducting a sales audit, but you'll also learn how to accurately track the results of your sales audits and use the insights gained to drive business growth.
The Importance of Measuring and Tracking the Results of a Sales Audit
Measuring and tracking the results of a sales audit is not only important for evaluating the effectiveness of the audit, but it also provides valuable insights into the overall performance of the sales function. By analyzing key metrics such as conversion rates, average order value, and customer lifetime value, companies can gain a better understanding of the return on investment of their sales efforts and identify areas for improvement. Furthermore, tracking the results of a sales audit can help to identify trends and patterns over time, which can inform future decision-making and strategy development.
Additionally, measuring and tracking the results of a sales audit can help to drive accountability within the sales team. By setting clear performance targets and tracking progress towards meeting those targets, companies can incentivize their sales teams to continuously improve their performance. This can lead to increased motivation and productivity, resulting in improved sales outcomes.
In summary, measuring and tracking the results of a sales audit is crucial for evaluating the effectiveness of the audit and identifying opportunities for continuous improvement. It allows companies to make informed decisions about how to optimize their sales processes and drive business growth. By analyzing key metrics and tracking progress over time, companies can better understand the effectiveness of their sales efforts and make informed decisions about how to optimize their sales processes.
Preparing for a Sales Audit: Gathering Information and Setting Goals
Gathering data for the sales audit is an essential part of the process, as it helps to provide a clear picture of the sales organization's performance and identify opportunities for improvement. There are several areas that should be considered when gathering data for the sales audit process:
- Define the goals of the audit: The first step in gathering information is to clearly define the goals of the audit. This helps to focus the audit on specific areas of the sales process and ensures that relevant information is collected.
- Identify key performance indicators (KPIs): Once the goals of the audit have been established, the next step is to identify the key performance indicators (KPIs) that will be used to measure progress towards those goals. These may include metrics such as conversion rates, average order value, customer lifetime value, or sales team productivity. Monitoring sales productivity metrics provides a way to hold reps accountable and ensure they remain motivated and active.
- Set targets for each KPI: Establishing targets for each KPI helps to provide a benchmark for measuring progress and determining the success of the audit. These targets should be realistic and achievable and consider any specific challenges or constraints that may impact performance. For example, a target might be to increase the conversion rate by 10% over the next six months.
- Determine the time frame for the audit: The time frame for the audit should be sufficient to allow for thorough data collection and analysis but not so long that actionable recommendations for improvement cannot be made in a timely manner.
- Gather data and ask questions: To gain a comprehensive understanding of the sales process, it is important to gather data from a variety of sources, including team members, customers, prospects, and other stakeholders.
Other sources to consider include:
- Sales performance data: Collecting data on sales performance is critical for evaluating the effectiveness of the sales team and identifying areas for improvement. This may include data on deals won and lost, sales content usage, and customer satisfaction. Sales can be tough, and closing deals can be especially challenging. But what exactly are the biggest barriers that salespeople face when it comes to closing? According to The Richardson Selling Challenges Study, 15% of salespeople struggle to differentiate their product. Moreover, 9% of salespeople struggle to create a compelling case for change. Check out our suggestions on the best tools to help with your sales enablement.
- Customer data: Analyzing customer data can provide valuable insights into customer preferences, behaviors, and needs. This can help to inform marketing strategies and sales processes to better align with customer expectations.
- Sales processes and systems: Evaluating sales processes and systems is important for identifying bottlenecks or inefficiencies that may be hindering sales performance. This may include analyzing data on sales activity, customer interactions, and other relevant items.
- Sales auditor assessment: A sales auditor should conduct a thorough assessment of the sales organization, including reviewing sales data, talking to team members, and reviewing sales content and marketing strategy. This helps to provide a comprehensive understanding of the sales function and identify opportunities for improvement.
Asking questions and gathering feedback can provide valuable insights into the strengths and deficiencies of the sales department and identify opportunities for optimization.
By gathering data from a variety of sources, a sales auditor can get a clear picture of the sales organization's performance and identify the best way to optimize sales processes for long-term success. This may involve identifying best practices and making recommendations for changes or improvements to sales processes, systems, and team needs. Additionally, using audit software can help to streamline the data gathering and analysis process and provide more accurate and comprehensive results.
By following these steps, auditors can gather the information needed to conduct a thorough and effective sales audit. This information can be used to develop strategies for improving sales performance and driving business growth.
Conducting The Sales Audit
Conducting the sales audit involves assessing the current state of sales performance and identifying areas for improvement. This may involve reviewing data on sales figures, customer satisfaction, and sales team needs, as well as conducting a content audit to assess the effectiveness of marketing efforts.
In such cases, it may also be helpful to gather feedback from the sales team, marketing team, and customers to get a more comprehensive understanding of the sales process and identify areas for improvement.
Once the data has been gathered and analyzed, the next step is to make recommendations for improvement. This may involve revising sales processes, updating sales content, or providing additional training for the sales staff. It may also involve making changes to the value proposition or prices to better align with customer needs and expectations.
In order to ensure future success, it is important to carefully review the audit data and consider the following steps:
- Identify any bottlenecks or inefficiencies in the sales cycle
- Assess the effectiveness of the sales team, including sales reps and sales figures
- Evaluate customer service and identify areas for improvement
- Assess the sales team's needs and make recommendations for training or support
- Review the marketing team's efforts and assess the effectiveness of the content and messaging
- Consider the overall value proposition and pricing strategy, and make recommendations for changes as needed
Measuring and Tracking the Results of the Sales Audit
Measuring and tracking the results of the sales audit is essential for evaluating the effectiveness of the audit and identifying opportunities for continuous improvement. There are several key steps involved in this process, including:
- Setting up a tracking system for key performance indicators (KPIs): To accurately measure progress towards targets, it is important to set up a tracking system for the relevant KPIs. This may involve creating a spreadsheet or using audit software to track metrics such as conversion rates, average order value, and customer lifetime value.
- Regularly monitoring progress towards targets: It is important to regularly monitor progress towards targets to ensure that the sales team is on track to meet its goals. This may involve checking in on the tracking system on a weekly or monthly basis or as needed based on the specific goals and targets of the audit.
- Analyzing and interpreting the data collected: Once the data has been collected and tracked, it is important to analyze and interpret the results in order to identify trends and patterns. This may involve asking the following questions:
- Are sales increasing or decreasing over time?
- Are new products or services resonating with clients?
- Is the sales funnel working as efficiently as it should? According to Salesforce data, 68% of businesses currently fail to identify and measure their sales funnel.
- How is the external market and environment impacting sales?
By regularly measuring and tracking the results of the sales audit, companies can better understand the effectiveness of their sales strategies and make informed decisions about how to optimize their sales processes. This can help to drive predictable results and ensure that the sales team is well-equipped to handle any challenges or opportunities that may arise. In addition, tracking the results of the audit can help to identify any issues with the order management system or other things that may be impacting sales performance.
Implementing Changes Based on the Audit Results
Implementing changes based on the audit results is the final step in the sales audit process. There are several key steps involved in this process, including:
- Communicating the findings of the audit to relevant stakeholders: It is important to clearly communicate the findings of the audit to relevant stakeholders, including the sales team, sales manager, and any external auditors who may have been involved in the process. This may involve presenting the results in a video or presentation format or creating written reports.
- Developing and implementing a plan for improvement: Once the findings of the audit have been communicated, the next step is to develop and implement a plan for improvement. This may involve identifying specific action items or recommendations for change and working with the sales team and sales manager to develop a plan for implementing those changes.
- Monitoring the effectiveness of the changes made: After the changes have been implemented, it is important to monitor their effectiveness to ensure that they are having the desired impact on sales performance. This may involve regularly reviewing sales figures and other key performance indicators (KPIs) to track progress toward targets.
By acting on the recommendations and insights gained from the audit, companies can drive meaningful change and continuous improvement within their sales function. This can help to ensure that the sales team is well-equipped to handle challenges and take advantage of opportunities as they arise.
However, it is important to be open to change and willing to adapt to new approaches, as one-size-fits-all solutions may not always be the best fit for a given sales organization.
The benefits of regularly conducting sales audits are numerous, including improved sales productivity, increased customer satisfaction, and enhanced business growth.
Regularly conducting sales audits and implementing changes based on the findings of those audits is critical for the success and growth of any business. By continuously reviewing and improving the sales process, companies are able to stay competitive and drive business growth in an ever-changing market.
Let Us Do The Heavy Lifting
Are you struggling to improve your sales performance and drive business growth? Are you considering conducting a sales audit but don't know where to start? If so, our team of experts at gardenpatch is here to help! With years of experience in sales and business development, we have the knowledge and expertise to guide you through the sales audit process and help you identify opportunities for improvement.
Don't let the uncertainty of the sales audit process hold you back. Reach out to us today and take the first step towards driving sustainable growth for your business. Our team is ready and eager to help you succeed.