Lagging indicators are the numbers that measure what has happened. They tell you how you are doing and include:
• Total sales
• Total margin
• Total new customers/deals made
Leading indicators are all about planned activity, measures such as:
• Number of prospecting calls
• Number of customer visits
• Number of qualified sales calls
• Number of demos completed
• Number presentations delivered
• Number and value of opportunities
Sales teams that commit to setting this type of activity targets (that they can report on at the next sales meeting) become successful because they become focused on the activities that produce results. This also provides a framework for sales managers to coach, manage and support their staff, as well as removing the guesswork required when individual sellers fall behind.
What’s the focus in your sales meetings? leading or lagging?
These are a collection of our views about the world of selling, though please feel free to disagree and share you own views with us.
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“CPV have taken the mystery out of the sales process and shown us how to do it for ourselves, now I feel much more in control of our business” – PW, MD Financial Services SME