Are you thinking about organizing your sales department or do you wish you could know the origin and effort needed, of each sale?
Making business decisions is all about knowing how your teams, products, and services are performing. That knowledge comes from tracking the right key performance indicators (KPIs). Selecting the right set of key performance indicators is critical to the success of any sales organization, in particular, those organizations aiming at future sales growth. Here we outline some essential Sales KPIs that will help you monitor your business. This extended, but quite comprehensive guide on sales KPIs is a must-read if you wish to start measuring your sales team performance.
Activity (calls, meetings, emails) Per Sales Rep: This sales KPI tracks the volume of activities your sales team is making over a period of time.
Lead to Sales Opportunity ratio: This KPI shows how many leads have been qualified and converted to an opportunity
Lead to Customer Ratio: Similar to above but this represents how many leads you need in order to have one customer
Sales Opportunities created: This sales KPI tracks the opportunities your Sales reps are creating so you can forecast future sales and potentially determine which opportunities are most worth chasing.
Demo and Proof-of-Concept bookings: This KPI tracks how many demos or Proof-of-Concept your team and individual reps make.
Opportunity Close Won Ratio: It’s a ratio of the number of opportunities closed against the number of opportunities in the pipeline, over a given period of time. It’s the simplest of all metrics and is used as a measure of a sales team’s success.
Opportunity Close Lost Ratio: This KPI presents how many opportunities have you lost by competition. A deep dive into the reasons might result in a change into approach strategy
Average Opportunity size: It is the total opportunities in revenue achieved in a set period divided by the number of closed-won opportunities for that period
Average Sales Cycle: This sales KPI gives an outlook into the productivity of your sales team about how much effort you put into closing a prospect.
Actual vs Target: This KPI compares closed opportunities over a set period of time and monitors the achievement of your sales team.
New Logos: This KPI represents how many new customers have been added. A metric that reflects your company’s future growth
Net Promoter Score (NPS): A measurement of how likely customers are to recommend your product/service to someone else
Sales Velocity: Sales velocity is the measurement of how quickly opportunities move through your pipeline and generate revenue. A sales velocity equation uses four metrics (number of opportunities, average opportunity value, win rate, and length of sales cycle) to determine an organization's sales velocity.
Sales Growth: A KPI measuring Revenue growth over a set period of time
Customer Acquisition Cost: This KPI tracks all costs associated with bringing onboard a new customer
Customer Lifetime Value: The value a customer contributes to your business over the entire lifetime at your company
Customer Churn Rate: The customer churn rate expresses the number of customers who stopped using your company’s products or services over a period of time.
Of course, there are more KPIs that depending upon your organization might be applicable.
Are you using any of the above? If not, but find yourself wondering how your daily work routine would change, owning and being able to share all this knowledge, then you should definitely give it a chance. We are more than happy to listen to you and design a personalized offer based on your team’s needs.
Our Data Visualization offerings empower you to more effectively achieve your organization’s goals. We bring together data, systems, and people in a fully-interactive, easy-to-use environment, incorporating shared visualizations of all your data from across your organization. That’s why, our team has been awarded multiple times for its sales solution applications!
Stefanos Tsolakidis, Sales & Alliances Director, WITSIDE