As a business owner, it’s important to track, measure, and score your sales efforts. This includes tracking your marketing ROI, your sales forecast, and the efforts of your sales reps and teams. Using scorecards to evaluate team members will let you rate their performance, examine your sales practices, and improve your overall sales strategy.
What Is Scorecarding?
Successful sales departments in any industry track and score sales reps and teams within their business. The scorecard will measure performance, outline goals and expectations, and help to ensure your business is generating enough leads to sustain your sales department.
Why Is It So Important For Your Business?
Scorecarding will allow you to take action within your business. You’ll create visibility and be able to do more of what worked for you and less of what didn’t. You’ll be able to adjust and evolve, focusing your time and energy on the elements of your business that are best helping you to reach your goals.
Tracking and using scorecarding for your business provides visibility and accountability. You’ll always know the score and where you stand in your business.
How To Get Started
When you first begin to track and scorecard your business, don’t attempt to track and measure everything all at once. There are three main areas you’ll want to take a look at first.
You’re not just looking at your top-line sale, but rather what makes up that number.
You’ll need to dig a little deeper and look at the numbers not just by month, but by segment, product, channel, etc.
You’ll need to get a clear picture of who your customers are. How many do you currently have and how many do you need to attain the profits you’re after? What will they need to spend on a monthly basis in order to get you to where you want to be? It’s important to hang on to the customers you have currently. When creating your marketing plans, don’t forget to include things that will encourage customer loyalty.
When scorecarding your business, you’ll need to track the ROI on all off your marketing efforts so you can prioritize what’s important. You’ll want to look mostly at:
- Website Traffic – Don’t just look at the quantity, look at the quality too. How much time are people spending on the site? How well is your website converting?
- Email Marketing – It’s not so much the size of your email list, but rather what actions are being taken. You’ll want to look at segmentation based on activity. How many people are opening your emails? What actions are they taking from there?
- Social Media – Aside from your likes and follower count, you’ll want to look at where the majority of your engagement is coming from. Which platforms will best help you to reach potential clients or customers? Which of your posts drive the most action and engagement?
Getting a clear financial picture of your business is critical when tracking and scorecarding your business. A few questions to ask yourself when looking at the financials for your business include:
- Are you charging the right price for your services? Be careful not to undercharge and have to make it up in volume. Find the right customers and clients, and show them the value that you provide to them.
- How does your Sales Mix look? Are you focused on selling in your more profitable areas and segments?
- What will your future costs look like? Are they rising or have you been able to find more efficient and cost-effective ways to run your business using sales forecasting and other tools? Are you leveraging costs where you need to in order to reduce risk and raise potential growth?
- When all is said and done, what does your profitability really look like? How healthy is your bottom-line?
Once you’ve tracked these three main areas of your business, you’ll be able to get a bit more granular. Scorecarding your business will help you get a real picture of where you stand today and what the future of your business can look like!