Sales and Operations leaders are constantly thinking about numbers.

The terminology in this field is so confusing.

How can you use these numbers on a daily basis?

With Meeting Math’s sales metrics calculator, there are two metrics: Average Value Per Meeting and Lead Deficit. Developed by Kronologic, it is more actionable than conceptual.


Need Help Automating Your Sales Prospecting Process?

LeadFuze gives you all the data you need to find ideal leads, including full contact information.

Go through a variety of filters to zero in on the leads you want to reach. This is crazy specific, but you could find all the people that match the following: 

  • A company in the Financial Services or Banking industry
  • Who have more than 10 employees
  • That spend money on Adwords
  • Who use Hubspot
  • Who currently have job openings for marketing help
  • With the role of HR Manager
  • That has only been in this role for less than 1 year
Just to give you an idea. 😀

Sales Metrics Calculator #1: Average Value Per Meeting

Average Value Per Meeting is the average value of what’s being sold to be won at a meeting.

To calculate this, you need three metrics:

What is the average value of a new deal to you, on average?

What percentage of your opportunities turn into closed deals?

Meeting conversion rate: What is the percentage of qualified meetings that are converted into qualified opportunities? For example, if you have 10 first-calls with prospects who turn out to be good leads, how many will become actual business deals?

Now, combining those two factors together in an equation looks like this:

The average value of a meeting equals the amount of money that is made from each sale multiplied by how often you close on those sales, and then again it’s multiplied by your conversion rate.

You can then use this equation: (50,000 x 0.25) + (10,000 x 0.5) = $62,500

$50,000 x 0.25 x 0.50 = $6,250

Per meeting, you are worth $6,250.

Once you know your Value Per Meeting, it will be easier to measure the success of your sales team and their performance in real-time. This is a leading indicator that can show how much work they are accomplishing while bookings or pipeline only indicate what was done before.

If you are not getting enough leads this month, it’s time to increase your lead generation and top-of-funnel efforts.

Beyond sales and operations leadership, what is the outcome for other stakeholders involved? For example, how does it affect the salesman’s work ethic or marketing strategy when they have a metric like this to measure their progress against?

  • How do I prepare differently for calls worth $500 versus those that are worth more?
  • Should I be preparing differently for each of these interviewees?
  • Is the prospect worth more to us than what we’re charging them?

Sellers need to make sure they are fully informed about the industry and provide valuable information for prospects.

Sales Metrics Calculator #2: Lead Deficit

The Average Value Per Meeting is a good indicator of how many leads you can expect to close, and it’s important for calculating lead deficit.

The Last Mile Problem is when a lot of customers don’t convert to sales meetings after being contacted by the company.

Qualified leads are the border between sales and marketing.

Marketing is often rewarded for generating a certain number of leads, while sales has to work hard just to meet their goals.

The Last Mile Problem is the question of how to get individuals with disabilities into jobs.

You calculate your Last Mile Problem by figuring out how many leads you need to reach a target number of closed sales. This equation is:

(Total Leads – Number of Meetings Booked) Average Value Per Meeting

This tells you how much money you lose from failing to convert leads into customers.

If your company is generating 300 leads per month, but you are only booking 34 meetings from those leads in a given month and the average value of each meeting is $6,250 (from our previous example), then here’s how it breaks down:

$1,662,500 is the difference between 300 and 34. More than one paraphrase can be given for a single sentence.

This is a huge problem for most companies. They are leaving $1.6 million in leads on the table each month because they don’t know how to convert them into sales.

If you run different lead channels through a formula in the sales metrics calculator, you can find out what is most profitable and where the company needs more resources to convert them into meetings or opportunities.

Lead Deficit in Different Channels

Kronologic is a company that helps companies find new prospects by providing sales metrics calculators.

sales metrics calculator

 

Event and webinar leads are typically worth $1 million or more, but most of these never convert to meetings. Most leaders believe their team’s level of follow-up is too slow.

Many companies have a deficit of cross-sell leads because they don’t target them enough.

It seems like cross-sell campaigns are the most outdated of any kind we see. Most sales and marketing leaders can’t even tell you how well they did on recent ones.

Sales leaders who have done well with demo requests in business hours can make it happen within minutes, but what about those that arrive outside of work? They typically convert at a lower rate and add up over time.

Gated content leads: It’s common that 90%+ of these never convert to meetings, and leaders regularly admit they aren’t being prioritized. That said, if you have the resources or technology available for them then there could be gold in those gated leads.

Chat bots: 50% – 90% of people who provide their email address never convert to a meeting.

This is strange because people are hesitant to give out their email address unless they’re really interested in a company.

What does this tell us?

When your lead deficits are higher than the average, they need to be improved.

Back to You

These are two sales metrics calculator that will help you approach sales in a new way.

What are the leading indicators you monitor in your calendar? What sales value do you measure most closely?


Need Help Automating Your Sales Prospecting Process?

LeadFuze gives you all the data you need to find ideal leads, including full contact information.

Go through a variety of filters to zero in on the leads you want to reach. This is crazy specific, but you could find all the people that match the following: 

  • A company in the Financial Services or Banking industry
  • Who have more than 10 employees
  • That spend money on Adwords
  • Who use Hubspot
  • Who currently have job openings for marketing help
  • With the role of HR Manager
  • That has only been in this role for less than 1 year
Just to give you an idea. 😀
Editors Note:

Want to help contribute to future articles? Have data-backed and tactical advice to share? I’d love to hear from you!

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Justin McGill
About Author: Justin McGill
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