When you're scaling an organization, it's important that you're able to measure the quality of your leads, pipeline, and sales talent. It important for business owners as well as sales reps, because simply adding people to the organization won't necessarily result in more sales. Today Rob Kall talks about the numbers that we might not be measuring and the importance of that data in helping your organization grow and improve. Although they aren't commonly measured, these data are the true drivers of your organization's success. Soft things Many sales leaders believe that the solution to any sales struggle is to throw more bodies at it. Though that option may work sometimes, it comes at a cost. Eventually, you'll find that you aren't getting that much more out of the machine despite the added personnel. In response to that problem, Rob and his company spent a lot of time looking at how you can move to tangible measurements instead of making decisions based upon gut feelings. They have identified 5 metrics to improve your company's performance. 1. Lead quality Leads are not created equal. If I have 1,000 leads and a 2 percent conversion to close, that's a super easy way to measure. But if I get a referral from my rich uncle, that's probably a much easier sale than calling someone who has never heard of my business or product. We fail to pay attention to these factors, but they are important. Unfortunately, they can also be difficult to determine. Begin by creating a baseline. If you find that of 1,000 leads you generated in the last period, you were able to generate 20 sales, you can measure a 2 percent conversion. [Tweet "Figure out where your leads come from. Once you've identified that, you may determine that the conversion rate for a particular lead source is higher than the others. #LeadSource"] You can also evaluate your leads by industry and location. Once you understand those conversions, you can identify the leads that are not likely to close and stop wasting your time on them. 2. Prospecting effectiveness Prospecting results in a lot of "no" responses. The only thing that really matters is engagement. As a rep, you must get a certain amount of engagement every day. Some people do it with sheer numbers. Others send fewer contacts but they personalize the ones they do send. Whichever approach you use, make notes every single time an activity results in something. When you do, you'll begin to recognize patterns. Your numbers might look great, but if the outcomes aren't there, those numbers don't mean as much. 3. True pipeline Rob points to a concept he calls a critical deal. Some companies do pipeline reviews on a weekly basis but others do it on a daily basis. It's a chance to see how well deals are progressing. Consider the following three factors: Is it a big deal that matters? If it's a $500 deal when typically your deals average $10,000, you probably shouldn't even look at it. Is the significance there? Is it a deal that is unlikely to close? Consider the probability. Has something happened that would make you think it's less likely to close? If you've had no communication with the customer or other indications that the deal may stall, consider those. If these three factors aren't there, you probably should focus on other deals. Move the critical deals forward and think about your deals in a structured way. 4. Product knowledge On the rep side of the issue, reps must have product and industry knowledge. When you're just starting out, you won't have as much knowledge as those who have been there for years. How well does this rep know the industry and the product? How does he compare to other reps? Those with the best product knowledge won't necessarily be the best performers. You can't possibly know every single factor of the industry. You simply must know enough to be credible. Those who haven't reached that minimum threshold will struggle until they do. Consider also closing ability or the ability to look at the la