Measuring the Impact and ROI of Digital Sales Rooms

What Are Digital Sales Rooms?

A digital sales room (DSR) is a secure workspace where sales reps and buyers can collaborate and access relevant content during the buying process.

A successful sales process is centred around understanding the buyer and what resonates with them at any time.

Digital sales rooms provide clear and detailed visibility into buyer behaviour, improving sales efficiency and customer engagement. For example, sales reps can see the exact content each stakeholder interacts with, how often they have interacted with the content, and who they are sharing it with. This enables timely and accurate follow-up.

With digital sales rooms, sellers can understand and share content tailored to address the individual requirements of all decision-makers in the buying committee.

The outcome of this is faster progress through the buying cycle, positively impacting key sales metrics like sales conversion rates and sales performance.

Impact of Digital Sales Rooms on Core Sales KPIs

It is great to know the meaning of digital sales rooms (DSRs) and their benefits. However, it is even more important to understand the impact of digital sales rooms on your business in detail.

This will help you to demonstrate the ROI of digital sales rooms to your colleagues and stakeholders. 

Let's look at the impact of digital sales rooms on core sales metrics.

1. Closing Rate

The closing rate is the percentage of sales deals that are closed from the total number of deals that were in the pipeline. 

It varies depending on the industry or vertical. However, the average closing rate across industries is around 20%. 

How can digital sales rooms improve closing rates?

• Digital sales rooms enable personalised sales enablement based on stakeholder’s profiles and interests, ensuring they receive relevant information that resonates with their specific needs.
• They enable you to present flexible pricing options and personalized quotes based on the prospect's needs and budget, increasing the chances of finding a mutually agreeable solution.
• You can also easily embed interactive tools that demonstrate the potential return on investment, helping prospects justify the purchase and overcome budget objections.
• With digital sales rooms, you can regularly update prospects about product features without bombarding them with annoying emails. You can also address their concerns openly and transparently without a sales rep. This keeps the deal progressing without constant meetings with a sales rep
• Digital sales rooms enable you to analyze user interactions within the platform to understand what may be causing obstructions to the sales process.

2. Sales Cycle Duration

This can be defined as the average time taken for a deal to move from the initial contact to closing. Tracking this metric helps sales teams identify areas to speed up the sales process. 

The length of the sales cycle depends on the total contract value (TCV) of the deal. The longer the total contract value (TCV), the longer the sales cycle. 

How can digital sales rooms improve sales cycle duration?

• According to Hubspot, digital sales rooms streamline communication and the number of interactions required to make a decision.
• You can share and collaboratively review proposals within the digital salesroom, shortening approval cycles and accelerating the deal process.
• Digital sales rooms enable you to create tutorials and FAQs, allowing prospects to explore the solution's features and address basic questions at their own pace without scheduling dedicated calls.
•  DSRs ensure that everyone involved in the sales process has access to timely information eliminating communication delays.
• Relying solely on email threads causes information misalignment, which slows down the sales process. Digital sales rooms allow you to upload mutual action plans so that your prospects can know the next steps without meeting a sales rep.
• Digital sales rooms serve as a collaborative workspace enabling internal teams and stakeholders to work together efficiently and reach consensus quickly.This enables prospects to provide real-time feedback on proposals and content, allowing for iteration and faster alignment on key requirements.
• Even if they go silent and don’t provide feedback, DSRs provide live notifications and  follow-up suggestions based on user behaviour.

3. Customer Acquisition Cost (CAC) 

This metric measures the cost of acquiring a new customer. It covers all expenses incurred during the sales process, from marketing and advertising to sales efforts and onboarding. Ideally, the CAC should be ⅓ of the total value the customer brings to your business.

How can digital sales rooms improve customer acquisition costs?

• By analysing user behaviour and conversion rates within the salesroom, you can identify areas for improvement and optimize your sales process to drive higher conversions at lower costs.
• You can easily showcase customer success stories, positive reviews, and testimonials within the sales room to build trust and credibility, influencing buying decisions. This ensures that sales efforts and resources are properly channelled
• You can A/B test different sales rooms/hubs for different content, offers, and layouts to identify the most effective elements and optimize conversion based on real-time engagement data.

4. Lead Conversion Rate (Lead-to-Close Ratio)

This metric measures the percentage of leads that turn into closed deals. By tracking this metric, companies can determine the effectiveness of each sales rep in a team.
Measuring this metric allows reps to know how many leads to reach out to before they can close a particular number of deals.

For example, a sales rep with a 10% lead-to-close ratio will need to reach out to 100 people to close 10 deals.

How can digital sales rooms improve the lead-to-close rate?

• You can offer drip campaigns and personalized content journeys based on lead behaviour to keep prospects engaged and move them down the funnel.
•  DSRs provide automatic lead scoring based on prospect’s engagement allowing you to segment them for targeted communication and offers.
• Digital sales rooms enable you to understand where prospects lose interest and identify areas for improvement in the sales process.

5. Total Revenue

This is usually the most common metric tracked by every company. It is the total revenue generated before cost deductions.

How do digital sales rooms improve total revenue?

Digital sales rooms provide a more self-reflective learning path throughout the buying process which makes, prospects 147% more likely to buy than originally planned.

6. Rate of Up-sell and Cross-sell 

When customers purchase an upgrade on a similar product, it is called an upsell. When they purchase related products that is called a cross-sell. Both upselling and cross-selling help you to get the maximum value from any customer.

How to calculate the upsell rate 

How to calculate cross-sell rate 

How digital sales rooms improve upsell and cross-sell

• Integrating your digital sales rooms with CRMs helps you leverage customer purchase history and engagement data to identify products and services that will complement their existing purchases and address emerging needs
• Digital sales rooms allow you to create customized pricing packages for complementary products, inspiring customers to consider additional solutions.
• You can create personalized demos of seamless integration with the current purchase. This reduces friction and encourages impulse purchases.
• You can also trigger personalized prompts and reminders within the digital sales room at relevant points in the customer journey, suggesting relevant upsells based on their progress.
• Digital sales rooms allow you to monitor the success of your upsell and cross-sell efforts, evaluate effectiveness, and identify areas for improvement.

Using these metrics to demonstrate the impact of digital sales rooms can help you gain leadership buy-in and make selling easier for your sales teams. Digital sales rooms offer a way to gain more visibility into the sales process and scale successful strategies based on real-time data.

This sales technology enhances sales process optimisation by providing a centralised platform for managing interactions with prospects and sales content. This streamlined approach ensures that sales teams can focus on high-value activities, ultimately leading to improved sales metrics and higher ROI. Leveraging advanced analytics and real-time data enables businesses to enhance overall sales performance using data-driven sales strategies.

Move Deals Faster With Hubforce

Hubforce enables you to easily create personalised digital sales rooms to centralise all your sales content and track buyer engagement in 20-30 seconds using Hubforce AI.

Smart and dynamic analytics provide visibility into the following:

• Engagement scores for each prospect
• What content prospects are engaging with 
• How much time is spent on each piece of content
• The hottest assets in your digital sales room

Hubforce AI gathers this data and recommends data-driven follow-up strategies for our sales team.

Click here to create your first 5 hubs for free.