In a volatile market, sales operations teams help organisation remain resilient. Internal volatility in revenue projections can be due to market fluctuations. These specific sales KPIs can be early warning signs of market volatility. They can be monitored, so companies can adjust their strategies, mitigate risk and keep the revenue stable.
Lead Conversion Rate
A one-time drop in lead conversion, which is the process of converting leads to paying customers, might be a sign that buyer behaviour has shifted, that there’s an increase in competition, the economy is falling, or something else. For example, when people are worried about the economy, they tend to delay their purchases. Sales ops teams can adapt their messaging to communicate value and need, and offer stronger payment options to reassure buyers. Watching this KPI closely enables sales to re-engage more effectively with leads.
Pipeline Velocity
Also known as speed to close or sales cycle velocity, pipeline velocity reflects how fast deals move through the sales funnel. A significant slowdown in velocity might signal that buyers are acting with apprehension and considering their decisions more carefully. In periods of market disruption, this KPI might call for doubling down on opportunities that are close to the finish line – or revisiting those lingering in the queue. In the frenzy of the 2020 disruptions, many companies experienced a drop-off in pipeline velocity, leading them to focus on high-value accounts to keep most of their deals on track.
Revenue per Rep
Changes in the number of sales reps per retail location can also be an indicator of market change. A decrease might signal a decline in product demand or the need to shift pricing to match changing market dynamics. Sales ops teams can then revamp compensation plans, modify territories, or provide short-term incentive comp to reward reps and encourage revenue stability.
Notably, with daily monitoring of such KPIs, enterprises be better equipped to go on an offensive, fine-tuning their sales strategy and rescheduling assets proactively to secure revenue in an unstable business environment. In stormy markets, agility is of paramount importance. Computation and data can help enterprises to turn volatility into a hidden advantage.
