As a sales team manager, it’s crucial to track key sales performance indicators (KPIs) in order to identify areas of convenience and optimize your team’s performance. But of course, sales numbers are the ultimate goal, there are a number of other factors that can impact your team’s success.
What are sales key sales performance indicators (KPIs)?
Sales KPIs are metrics that measure key aspects of a sales team’s performance. By tracking these KPIs, sales managers can better understand where their team is excelling and where they need to improve.
The three main categories of key sales performance indicators (KPIs)
- Financial KPIs: These KPIs track the financial health of your sales team and include metrics such as revenue, profit margin, and closing ratio.
- Productivity KPIs: These KPIs measure how efficiently your sales team is working and include metrics such as call volume, lead conversion rate, and average deal size.
- Behavioral KPIs: These KPIs track the behavior of your sales team and include metrics such as customer satisfaction, number of objections per sale, and length of the sales cycle.
Here are 10 key sales performance indicators (KPIs) that you should be tracking:
1. Overall Sales Volume
2. Average Sale Value
3. Average Order Size
4. Conversion Rate
5. Lead-to-Opportunity Conversion Rate
6. Opportunity-to-Close Conversion Rate
7. Sales Cycle Length
8. Number of New Customers Acquired
9. Customer Retention Rate
10. Revenue Growth Rate
1. Overall Sales Volume: Most businesses track their sales on a monthly or quarterly basis. You have to track the overall sales volume on a daily basis.
This will give you a more granular understanding of your team’s performance and enable you to identify any potential issues early on.
Using a sales CRM, you can automatically track your team’s sales volume and get real-time insights into their performance.
2. Average Sale Value: The average sale value is a key metric for understanding the health of your business. Tracking the number over time and comparing it to your average order size will give you insights into whether or not your prices are in line with the market.
This metric is also a good way to spot trends in the type of products or services that your buyers are buying.
A sales CRM can help you track this number and see how it changes over time.
3. Average Order Size: When looking at your sales numbers, it’s decisive to pay attention to both the overall volume and the average order size.
The average order size will give you insights into the types of products or services that your buyers are buying. If you see a decrease in the average order size, it could be a sign that your prices are too high or that your product mix is off.
When it comes to tracking this metric, a sales CRM can be a valuable tool. By tracking your team’s average order size, you can get an understanding of the products or services that are selling well and adjust your offerings accordingly.
4. Conversion Rate: The conversion rate is one of the most important sales KPIs. It measures the percentage of leads that are converted into paying customers.
A high conversion rate is a sign that your sales team is efficient and effective. A low conversion rate could be a sign that your team needs more sales training or that your pricing is off.
5. Lead-to-Opportunity Conversion Rate: The lead-to-opportunity conversion rate measures the percentage of leads that are converted into sales opportunities.
The above metric is a good way to measure the effectiveness of your lead generation efforts. If you’re generating a lot of leads but they’re not converting into sales opportunities, it may be a sign that your team needs more training on how to qualify leads.
6. Opportunity-to-Close Conversion Rate: The opportunity-to-close conversion rate measures the percentage of sales opportunities that are converted into closed deals.
Sales closing is a key skill for any sales team. But, if your team has bad performance while closing the sales, they’ll need more training and motivation for converting sales opportunities to buying customers.
7. Sales Cycle Length: At a basic level, the sales cycle is the length of time it takes to close a deal.
But, the sales cycle can be different for every business. And, it can be affected by a number of factors, like the type of product you’re selling or the industry you’re in.
As a general rule, a shorter sales cycle is better. But, you also want to make sure that you’re not rushing your team to close deals too quickly.
A sales CRM can help you record your team’s sales cycle and see where there is room for improvement.
8. Number of New Customers Acquired: The number of new customers acquired is the proper measure of the success of your sales team’s efforts. In fact, it should be among the most essential goals of your sales team.
When you track new buyers, it gives a perspective on how your team is bringing in new revenue. If you’re not happy with the number of new customers being acquired, it may be time to re-evaluate your overall revenue generation strategy.
9. Customer Retention Rate (CRR): The customer retention rate is the percentage of customers that continue to do business with you after their first purchase.
A high customer retention rate is a sign that your team is providing good customer service and that your product is meeting customer needs. A low CRR means that your product and support reps need to strategize better and execute better buyer retention ideas.
10. Revenue Growth rate: The revenue growth rate is the year-over-year percentage change in your company’s revenue.
A high revenue growth rate indicates that your team is generating more income for your business and that your products are in demand.
The key sales performance indicators that you should track depend on your business goals. But, some of the most important metrics to track are the lead-to-opportunity conversion rate, the opportunity-to-close conversion rate, the sales cycle length, and the number of new customers acquired.