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Judgment Day Is Upon You: Five Essential Sales Metrics MSPs Should be Measuring

Posted May 19, 2015by Mike Schmidtmann


A Baptist Preacher once told me “Stop praying for sales. Make those calls. Seek, and ye shall find!”

Plenty of MSPs aren’t selling as much as they’d like to, but it's hard to find the path of least resistance when you're walking around blindly. Are you measuring your Sales performance? By following a simple Sales formula and targeting these five success indicators, you'll see that wayward customers and IT departments are easy to find and sell to.  

1. Net New Appointments

The most important “Leading Indicator” of sales success will be initial appointments with new prospects. Some salespeople seem busy all the time, but don’t get anything done. If you aren’t talking to new prospects, you aren't filling the sales pipeline and are wasting valuable time and energy. Shoot for 2-3 new prospects per week.

2. Proposals per Month

You won’t make a sale without a proposal, so this metric is obviously important. You’ll want to know the number of proposals, the size, the type of solution, and the kinds of prospects. This metric is most useful when evaluated together with the next two metrics. Proposals take time to research and prepare, so don’t deliver a proposal unless the prospect is properly qualified.

3. Win Percentage on Proposals

You should be winning 25% - 50% of your proposals. Lower than that, and you are spinning your wheels. If it’s higher than that, you are underpricing your offers and leaving money on the table.

4. Average Size Order

The right size order will depend on your business model, but it’s very important to track. Many successful MSPs have found it takes time and effort to on-board new clients, so they’ve set a minimum size customer of $1,000 or $2,000 per month. Others shoot for $10,000 per month or more as their target. Find the “Sweet Spot” for your business, and stick to it. That means occasionally saying “NO” to opportunities either too big or too small for your business.

5. Time from Proposal to Close

There are two contradictory sales trends going on at the same time. Cloud sales are closing faster and big complex projects are closing slower than ever before. Track your time from proposal to close carefully, and take notice if the expected close date keeps getting postponed.

If your small MRR proposals are taking longer than a month, you are doing something wrong in the selling process. If your larger opportunities are hanging around forever and not closing, you aren’t pacing your sales correctly and not creating urgency.

“Success is a Statistical Event”

Your management dashboard should be tracking these five metrics every month. If you aren’t gaining consistent results, you can bet there’s a clue in these key performance indicators (KPIs) that will help you correct the problem.

Consistent sales results come from the skilled execution of simple sales steps. When you and your salespeople uncover enough new opportunities and pursue them with the right sales process, you will win new accounts and grow your business.

Do I hear an “AMEN?”


Read More Chump Change:

Mike also recently held the following webinar...


Mike Schmidtmann is a member of 4-Profit, an organization dedicated to education, growth and profitability of solution providers in information technology. With over 20 years of experience, Mike is veteran leader in sales management, helping both resellers and vendors improve margins and profitability by identifying what it takes to hire and retain the most talented sales staff. Mike is the author of the “Talent Rules” series, a complete guide for sourcing, screening and hiring productive sales individuals. He is also a frequent public speaker on business and management topics, and is past-president of the National Speakers Association DC Chapter.

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