Sales Cycle Time

This is a simple technique through which a startup entrepreneur can assess the development of each sales person and how long he takes to close a particular deal. The importance of this metric is, it is easy to see, although the desired result is company-specific. In few organizations, a salesperson that closes a $200k deal every month might be more valuable than someone who takes twelve months to close a $2 million deal.

It is up to a startup to choose its type of metrics but it is always recommended for startups to inculcate Sales-Cycle-Time. As with number of Touches, you can use Time-To-Close as a way to eliminate bad leads from the sales funnel.

Turnaround time

This metric is rough to dependably measure, because it’s grainier, but it can also be very successful at predicting achievement. After the salesperson has established interest, rapid reply to a prospect’s questions, objections and proposals can mean the difference in closing or losing the deal. It’s simple to see why – in the mind of the buyer, fast comeback in the sales process signals an eagerness to carry the partnership in the long term. In cases where products or services are evenly coordinated, quicker response time is a strong benefit.