Revenue growth is a top goal of any sales leader. But to achieve that goal, you must ensure each seller is on track to achieve their targets.
That’s where sales scorecards come in.
A sales scorecard is a powerful tool that provides sales leaders with a clear snapshot of each rep’s performance. With a well-structured sales scorecard, you’ll quickly see whether a rep is on track to achieve their sales goals and where they may need additional training and support to stay on course.
Read on to learn what a sales scorecard is, why it’s a must-have tool for any sales leader, and how it differs from a sales dashboard.
What is a sales scorecard?
A sales scorecard is a tool for measuring and evaluating a rep’s sales performance. Sales managers and enablement teams rely on sales scorecards to determine whether a rep is on track to achieve their sales targets. Sales scorecards can also help identify where additional training, coaching, and support may be needed to improve performance.
Typically, a sales scorecard includes a variety of key performance indicators (KPIs), such as
- Close rate
- Average deal size
- Sales velocity
We’ll take a closer look at some of the most common metrics found in sales scorecards later on.
Of course, KPIs alone don’t tell the full story. A sales scorecard allows you to access a rep’s performance in context by comparing it to:
See how a rep’s performance compares to others in their region or with the same job title or start date.
Evaluate whether a seller is on track to achieve their goals and identify obstacles that may stand in their way.
Track trends to see how a seller’s skills and performance have (or haven’t) changed over time.
So, why are sales scorecards important?
Sales rep scorecards provide a clear, structured way to measure sellers’ performance and identify obstacles that may prevent them from achieving their sales targets. Then, you can take data-backed action to drive better results – before it’s too late.
What’s the difference between a sales scorecard and a sales dashboard?
Chances are, you’re familiar with the term “sales dashboard.” While sales scorecards and dashboards may seem similar, they serve different functions.
Sales scorecards and dashboards are both important tools for evaluating sales performance. However, each tool has a unique function and serves a different audience.
As we’ve discussed, sales scorecards are a tool for measuring each seller’s performance. Typically, sales rep scorecards are used by sales and enablement managers to see how a seller is progressing toward their goals and identify potential roadblocks. This allows sales managers and sales enablement teams to deliver targeted training, coaching, and support to help the rep stay on track and hit their sales targets.
On the other hand, a sales dashboard provides a high-level overview of how the entire go-to-market team is performing. Sales and executive leadership commonly use sales dashboards to capture overall business performance. A sales dashboard often includes business metrics like:
- Revenue
- Number of deals closed
- Costs
- Churn
Sales scorecard vs. sales dashboard: what’s the difference?
Which KPIs should be included in a sales scorecard?
There’s no single metric that tells the full story of sales performance. Instead, sales scorecards typically include a range of KPIs.
So, which KPIs should be included in a sales scorecard?
There’s not a one-size-fits-all sales scorecard template that works for every role in every business. Instead, you must develop sales scorecards aligned with your business needs and strategies.
It’s important to develop a sales scorecard for each salesperson. After all, each salesperson has different responsibilities.
For example, sales development reps (SDRs) are responsible for finding and qualifying leads. As such, some KPIs you may want to include on an SDR scorecard include:
- Number of emails: The number of emails sent.
- Number of calls: The number of calls the SDR makes to prospective customers.
- Response rate: The percentage of prospects responding to SDR outreach.
- Leads generated: The number of leads the SDR has brought into the pipeline.
- Meetings set: The number of meetings an SDR has scheduled with qualified leads.
- Conversion rate: The percentage of contacts or outreach attempts that convert to qualified leads or meetings.
On the other hand, account executives (AEs) are responsible for taking qualified leads and turning them into closed deals. Some KPIs to include in an AE sales scorecard include:
- Activity metrics: This might include the number of calls, emails, and demos delivered.
- Revenue: How much revenue is generated by the rep.
- Sales velocity: How quickly deals move through the sales pipeline.
- Conversion: The percentage of leads that are converted to opportunities or closed deals.
- Quota attainment: What percentage of the rep’s quota they’ve achieved.
- Average deal size: The average value of the deals closed by a specific rep.
- Win rate: The portion of deals a rep has won.
What are the benefits of sales scorecards?
Sales scorecards are powerful tools that benefit sales teams of all sizes and types. Let’s examine a few of their top benefits.
Quicker identification of obstacles
Sales scorecards help sales managers quickly identify obstacles preventing sellers from achieving their sales goals. That way, managers can take action when there’s still time to turn things around.
Tailored training and coaching
Sales scorecards highlight a rep’s strengths and areas for improvement. Managers can then provide targeted training and coaching to help reps bolster skills and improve performance.
Refined sales processes
Sales scorecards provide valuable insight into what’s working and what’s not. For example, let’s say a specific stage of the sales cycle has a particularly low conversion rate. You can use these insights to improve sales processes during this part of the sales cycle, making it easier for sellers to achieve their goals.
More seller accountability
Sales scorecards give sellers a clear picture of their performance, fostering a sense of ownership and responsibility. This transparency drives greater accountability, which motivates reps to stay focused on achieving their goals.
Increased seller retention
Sales scorecards allow managers to understand where a seller needs more support – and then deliver it. When sellers feel supported, they’re more motivated to do their best. Job satisfaction and retention will both increase.
Better forecasting and planning
While sales forecasting is important, it’s often inaccurate. Sales scorecards give sales leaders a precise understanding of where each rep stands. This clarity helps sales leaders make more accurate revenue predictions and better prepare for future business challenges.
Drive better performance across your entire sales team with sales scorecards
Every revenue leader aims to improve overall sales performance. However, achieving that goal requires being closely attuned to the performance of each individual team member.
Sales scorecards provide a snapshot of each seller’s performance. You can determine whether they’re on track to meet their targets and identify areas where they might need additional support to overcome challenges and meet their goals.
Today, top-performing revenue organizations depend on Mindtickle’s all-in-one revenue enablement platform to track seller performance, deliver tailored training, coaching, and support, and ensure every seller has what it takes to achieve their full potential.
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By Helen Waite
