Podcast Summary: The Missing Metrics of Modern Selling

Episode Title: The Missing Metrics of Modern Selling
Release Date: February 17, 2025
Hosts: Bill Caskey and Bryan Neale
Podcast: The Advanced Selling Podcast

Introduction to the Episode

In this episode of The Advanced Selling Podcast, hosts Bill Caskey and Bryan Neale delve into a critical yet often overlooked aspect of sales success: the essential metrics that modern sales professionals need to track. Moving beyond traditional sales numbers, Bill and Bryan explore how understanding and leveraging these metrics can significantly enhance sales performance and business growth.

The Importance of Business Metrics in Sales

Bill introduces the episode by emphasizing the significance of knowing the "math of your business." He asserts that many salespeople and leaders overlook fundamental metrics, leading to inefficiencies and missed opportunities.

Bill (05:03):
"I know how important numbers are to you and your business. This topic is something like, what's the math of your business?"

Bryan echoes this sentiment, highlighting that without a solid grasp of these numbers, sales professionals cannot effectively measure or improve their performance.

Traditional vs. Modern Sales Metrics

The discussion begins by contrasting traditional sales metrics with the needs of the modern sales environment. Traditionally, sales metrics focused on:

1. Number of Cold Calls: Tracking how many unsolicited contacts a salesperson makes.
2. Proposals Made: Counting the number of presentations or proposals sent to potential clients.
3. Closing Percentage: Measuring the ratio of closed deals to proposals made.

Bryan (08:17):
"There were really only three numbers, which are still in the ballpark in terms of like, cold call today is not necessarily a cold call..."

However, in today's digital and data-rich landscape, these metrics are no longer sufficient. The hosts argue for a more nuanced approach to tracking sales performance.

Missing Metrics in Modern Selling

Bill and Bryan identify several "missing metrics" that are crucial for contemporary sales success:

1. Inbound Lead Tracking:
   Understanding the flow and sources of inbound leads is vital. Bill points out that many salespeople do not track where lead volume originates, whether from corporate initiatives or personal outreach.

   Bill (10:23):
   "What are the numbers of inbound leads that are coming to me in my territory?"

2. Engagement and Give Metrics:
   Bill introduces the concept of measuring how often salespeople make introductions or connections for others, emphasizing the importance of contributing to the network.

   Bill (14:58):
   "The number one is the number of unsolicited or solicited introductions that you make for other people."

3. Internal Conversion Metrics:
   Tracking internal processes, such as how many interactions lead to meetings beyond the initial contact, provides deeper insights into sales effectiveness.

   Bryan (16:02):
   "Another thing that we don't measure is the insides of this... for example, out of every 10 deals that I start..."

4. Average Days to Close:
   Knowing the average time it takes to close a deal helps in assessing the efficiency of the sales process.

   Bill (17:08):
   "I would highly encourage you to measure your average days to close."

Practical Examples and Case Studies

The hosts illustrate their points with real-world examples. Bryan shares a case where a salesperson made an unrealistic number of cold calls (800 calls in four months) but only closed one deal. This stark disparity underscores the need for better tracking and optimization of sales activities.

Bryan (12:34):
"Out of the 800, how many deals have you gotten? He said, one."

Bill adds humor to the conversation by comparing traditional sales metrics to "boy math" and "girl math," coining the term "salesperson math" to describe the often-confusing and ineffective numbers salespeople rely on.

The 'Give' Metric: Measuring Your Contributions

One of the standout metrics discussed is the "give" metric—how often salespeople contribute to others' success by making introductions or connections. Bill advocates for setting a modest goal, such as making two unsolicited introductions per month.

Bill (15:24):
"Measure the give. Measure the give. And two, a month is not... So that's one of mine."

By consistently contributing to others, sales professionals can foster goodwill and create opportunities that may return benefits in the future.

Internal Metrics: Enhancing Sales Processes

Beyond external metrics, Bill and Bryan emphasize the importance of internal metrics that assess the efficiency and effectiveness of the sales process itself. These include:

• Days to Close: Monitoring how quickly deals are finalized can help identify bottlenecks and streamline processes.
• Engagement Rates: Understanding how many of your interactions lead to meaningful progress can highlight areas for improvement.

Bryan (17:56):
"If we're just talking emotion and theory and concepts, but we're not getting it down to dollars and cents. Yeah, we're missing that."

Pricing Strategies and Business Math

In the latter part of the episode, the conversation shifts to the importance of understanding pricing strategies through business math. Bill advises salespeople to collaborate with their CFOs to analyze how price changes impact sales volume and overall revenue.

Bill (20:11):
"Go to your CFO with this one and have your CFO create a little spreadsheet that shows you the amount of volume that you need to increase every time you discount price by a percentage point."

He reassures sales professionals that strategic price increases can be beneficial, even if they risk losing some customers, by significantly enhancing profit margins.

Conclusion and Takeaways

As the episode wraps up, Bill and Bryan reiterate the necessity of tracking both traditional and new metrics to gain a comprehensive understanding of sales performance. They encourage listeners to adopt these metrics to not only measure but also improve their sales strategies.

Bryan (22:26):
"We want to hear from. Think of some of these episodes because we're trying to... conduct ourselves and get behind the numbers, which was today's."

Key Takeaways:

• Expand Beyond Traditional Metrics: Incorporate inbound lead tracking, give metrics, internal conversion rates, and average days to close.
• Measure Contributions: Regularly make and track unsolicited introductions to build a strong network.
• Understand Pricing Impact: Use business math to strategize price adjustments for optimal revenue.
• Collaborate with CFOs: Leverage financial expertise to align sales strategies with business goals.
• Continuous Improvement: Regularly review and optimize metrics to enhance sales performance.

Notable Quotes:

• Bryan (08:24):
  "What are the numbers of inbound leads that are coming to me in my territory?"

• Bill (14:58):
  "The number one is the number of unsolicited or solicited introductions that you make for other people."

• Bill (17:08):
  "I would highly encourage you to measure your average days to close."

• Bryan (22:26):
  "We want to hear from. Think of some of these episodes because we're trying to... conduct ourselves and get behind the numbers, which was today's."

This episode provides valuable insights for sales professionals seeking to refine their strategies through better metric tracking and business math understanding. By adopting the discussed metrics, salespeople can enhance their effectiveness, build stronger client relationships, and drive sustained business growth.