Sales Rep Scorecards – a tool that nobody asked for but everyone needs

Do you ever follow so many sales metrics that you can’t figure out which data is actually relevant? Or maybe you don’t track any indicators and your decisions are based purely on gut feelings? Both of these scenarios might send shivers up a manager’s spine.

If you want to make conscious choices and evaluate your call center’s processes, this article will show you how to do so. Thanks to scorecards you can create a measurable strategy that is built on solid KPIs to lead your team deliberately.

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What is a Sales Rep Scorecard?

As the name suggests, a sales rep scorecard is a card, document, program, or app that keeps track of your team members’ key performance indicators (KPIs). It enables each employee to see their progress and how they are performing in terms of the team’s goals. Each member can also compare their own scores with co-workers’ achievements. Plus, a scorecard can be used by sales managers to track and improve the performance of their employees.
Running a call center successfully is impossible without defining a precise goal and identifying particular steps that are necessary to help you achieve it. You’ve probably heard the term “KPIs” thousands of times during your career, but how did you specify them and did you assign specific KPIs to the right people?Sounds wonderful but… also a bit like a buzzword, right?

There can be two sources of problems with KPIs. First, they are often too generic because you try to measure literally everything possible. Without specifying what matters the most, you’re going to drown in a sea of irrelevant data that’s impossible to compare. The second issue is that teams don’t know how to track the right KPIs nor how to ultimately make use of them.

Sales scorecards can address both of the above problems. They require setting precise goals, assigning them to the right employees, and following them based on actual numbers that are possible to track daily or periodically.

Avoid generalizations and adjust KPIs to your team’s goals

KPIs in call centers are usually based on the classic sales funnels and forecasts. At each stage of this model, companies can measure percentage rates of different metrics and name them according to the particular level. They can track KPIs like reach rate, conversion rate, or number of leads in the sales funnel. The issue is that these metrics only tell us about what has happened, not how to change it.

They might come in handy for monitoring performance, but if you want to know how to make a change then you should measure leading KPIs based on your company’s long-term research and unique needs.

If you have multiple roles within a team, create a scorecard for each. Teams may consist of different people who have various jobs, so the scorecard of a sales representative will differ from that of an account executive, for example.

What should I Include in a sales rep scorecard?

Now we’re aware of the consequences of setting irrelevant KPIs. Instead of looking for the negatives, let’s focus on the solutions and what to include exactly when creating a scorecard. Although you should avoid generalizing, adjusting KPIs to particular awareness stages of the sales funnel might still be relevant.

Here’s a list of metrics you can track for success:

• first response time,
• customer acquisition cost (CAC),
• revenue per sales rep,
• customer lifetime value (LTV),
• new vs. returning customers,
• number of set demos vs. demos actually run,
• number of demos vs. sales from demos,
• calls vs. sales made.

In general, sales reps should measure metrics connected with efficiency, production, and leading indicators. As a result, they should be able to stay on track to achieve their future goals and managers should be able to evaluate the results, compare them, and draw conclusions. The metrics should also be relevant to the sales reps and guide their everyday behavior.

This data can be based on calls and additional comments added into the CRM system after speaking with each customer. The metrics will differ between outbound and inbound call centers, as the only thing these two departments might have in common is the same software system provider (e.g. CloudTalk).

What are the benefits of using sales rep scorecards?

From a managers’ perspective, there are multiple benefits to reap from using scorecards.

• Motivate workers and encourage them to develop their skills. Scorecards can be useful during training meetings (regardless of whether they are 1-to-1 or team appointments or periodic reviews) to show employees their visible strengths and weaknesses. Exact numbers and precise solutions can encourage them to keep track of targets and boost performance.
• Compare team members regularly to know exactly who works best. Thanks to this, managers can see which agents improve their performance and which don’t achieve the desired results. It’s a rough part of the job, but scorecards provide sufficiently firm evidence to dismiss such a person  if necessary. After all, a whopping 80% of turnover comes from bad hires.
• Scorecard data can show the bigger picture of team performance and the overall sales process. By tracking relevant metrics, managers can base decisions on specific information that comes from empirical data. No more guessing or assumptions, just the definitive numbers.
• Sharing scorecard results in a timeframe can raise competitiveness and encourage others to leverage their work. Salespeople are often keen on meeting targets, beating their own scores, and performing better than others. This can be a part of a game that culminates in a reward for each rep that performs best in their category.

Who should have access to scorecards?

When it comes to scorecards, you can consider sharing at least some information among the team. It would be best to give everyone within the team access to some data and limit the rest. To cut the story short: sales reps should have the possibility to compare their basic results with those of colleagues. However, managers should limit access to the whole spectrum of information and keep certain pieces of essential knowledge to themselves and the executive board. 

• Executive board reps: This category includes people like a VP of sales or a CRO who need to keep track of teams and sales managers. They should play an active role in creating the scorecards and implementing them.
• Sales managers: should have their own scorecards as well as evaluate the results of those for whom they are responsible (sales team members).
• Sales reps: should only have access to information that is essential for tracking their own KPIs and comparing them regularly to those of the team.

Outbound sales scorecard KPIs

As we’re diving deeper into the details, the time has come to set specific KPIs according to the type of call center you’re managing. First, for outbound offices.

Calls made

What is it? The total number of calls a sales rep has made, which shows the number of leads they have contacted.

Why does it matter for the scorecard? To find out if making calls is working and if the value correlates with the number of calls answered or appointments made.

Emails sent

What is it? The number of emails sent is similar to the metric above. You can measure if emails get delivered and opened as well as if they lead to engagement or a response in order to find correlations.

Why does it matter for the scorecard? Although it’s quite basic, it can be a great starting point to determine your more specific goals and show you the bigger picture of your office’s email flow.

Demos booked

What is it? The total number of demos booked tells you how many people or businesses are interested in your products or services.

Why does it matter for the scorecard? This KPI shows the level of interest in your products or services and can help you classify whether a lead is warm or cold. Prospects who schedule demos are more likely to make purchases, so knowing who they are is vital information for you and your agents.

Leads sourced

What is it? The number of people or businesses you have contact details of from calls, emails, websites, and any other brand touchpoints.

Why does it matter for the scorecard? Gaining new prospects is key for any outbound call center, as leads are prospective future clients.

Opportunities accepted/passed

What is it? A sales rep establishes a relationship with a lead, and while talking it is estimated how willing they are to close a deal.

• Accepted: This is also called a qualified lead and describes a person who is willing to spend money on what you have to offer. 
• Passed: is a lead who rejects or passes on an opportunity your agent gives them by offering your company’s services. This happens when a prospect turns out not to be a good fit or something happens during the call, and the sales rep realizes the lead isn’t likely to close a deal.

Why does it matter for the scorecard? Your agent should be able to tell if the call is a success and has the potential to result in a sale. Thanks to that, they can estimate how many prospects out of everyone they talk to would be willing to close a deal. This also shows how many clients your agents are able to attract monthly and how many contracts can be signed in a particular period.

Inbound sales scorecard KPIs 

Inbound call centers also need scorecards to track the relevant parameters. As you might expect, they differ from those for outbound call centers because agents’ work differs. What should you keep in mind as an inbound team leader?

Average lead response time

What is it? A measurement of how quickly a sales rep responds to a lead who initiated the contact (e.g. by submitting a form). Depending on the source of the lead, you can also classify it as warmer (requesting a demo, etc.) or colder (downloading a whitepaper, for example).

Why does it matter? This metric is pretty easy to track. According to research and trends among call centers, a company that responds to a lead first increases its chances of closing a deal dramatically. 50% of buyers choose a vendor that responds first, so you should work on speed in order to be competitive. Only 37% of businesses respond within an hour.

Follow-up rate

What is it? The number of times that a rep reaches out to a given lead.

Why does it matter? Research shows that 50% of sales happen after the 5th contact, whilst most sales reps stop after only 2 attempts. Tracking the follow-up rate is the way to avoid making such a mistake, as it ensures your sales agents will follow up with leads an adequate number of times. 

Lead conversion rate

What is it? The proportion of leads that convert to sales. The conversion rate itself is the number of conversions divided by prospects called by an agent.

Why does it matter? It shows how successful your marketing strategies (like sales funnels) are. Conversion rate tells you what percentage of your traffic is actually doing what you planned. Tracking such metrics is vital for running a call center effectively. Putting it as a category on the scorecard can give you both a specific and general view of the efficiency of your (and your agents’) actions.

Revenue per successful call

What is it? How much money a single successful call brings in.

Why does it matter? As this metric concerns finances directly, it’s essential to track in your call center. It tells you which calls are most successful and bring in most revenue by showing each call’s efficacy and monetary value.

Average call duration

What is it? ACD is a measure of the average length of telephone calls, and it’s typically based on reports about call details saved in call center software.

Why does it matter? With it, you can make sure that your agents’ time on each, single call is evenly distributed. None of your agents should waste their time speaking with one prospect for hours whilst neglecting other leads. Sales reps also shouldn’t make lightning-fast calls, since they might not provide enough time to bring value to the conversation. It’s your task to determine how long an average call should last for and track it thanks to this metric.

Conclusion

Although there are some universal ideas, there’s no one-size-fits-all solution that applies to KPIs, which should be unique for each company. Breaking down your goals to create scorecards gives you an idea of how achievable your plans are. This also makes your management more conscious and your sales reps more informed about the strategy and metrics they should follow to achieve success.

With this knowledge, we hope you are all ready and set to create scorecards for your employees. In order to track the progress of your reps, automate some processes, and gather data from calls in one place, you need a robust call center platform. Connecting the relevant KPIs with a powerful software system can leverage your employees’ work and make your strategy more efficient.

If you want to be sure that CloudTalk would be right for your company, you can read more about our solutions for inbound and outbound call centers. And to make your decision even more informed, there’s a 14-day trial to try so that you don’t have to decide without testing it out for yourself first.