Our companies depend on the revenues we generate from the products or services we offer to our customers. To put it differently, among all teams, the one that influences the profitability of your business the most is the sales team. Therefore, all strategic decisions that affect the way this team operates cannot be guided only by the intuition of team leaders.
Under those circumstances, you may take into account certain performance indicators while making decisions. These KPIs are numbers that can you can turn into meaningful stories and actionable insights. Therefore what should your organization measure regarding sales performance?
Since you cannot manage what you do not measure, selecting the right key performance indicators (KPIs) for reporting is crucial. In essence, the tactics you use for approaching new customers, your email campaigns, your website engagement, the use of social media channels, all elements must be reflected in your KPIs.
Selecting the right Sales KPIs
To identify the type of KPIs you need, you must first think about the goals that you have set and the sales mix you are using. The goals of each company differ, and so do the performance indicators it has to measure. Although there is nothing as one-size-fits-all, in this article, we are going to write about the essential Sales KPIs.
Given these points, and when it comes to sales, the most critical performance measures have to do mainly with conversions rates. As an illustration, how many leads and opportunities you convert into paying customers or the amount of revenue generated from them.
Apart from these, you may find useful monitoring other aspects, too, namely the inbound and outbound reach effectiveness or the productivity of each sales agent or SDR.
So let’s start with those Sales KPIs you are looking for.
Outbound Reach KPIs
This section has a set of metrics and sales KPIs that focus on every step of the sales pipeline. Monitoring all these steps is essential while taking a closer look at your sales team performance.
- The Number of Emails Sent: This KPI represents the absolute number of emails sent during the outbound lead generation.
- Calls Made: It represents the absolute number of calls made during the outbound lead generation.
- Email Open Rate: The email open rate KPI measures the percentage of people who open an email from an outbound approach.
- Click-Through Rate: Similarly to the previous metric, click-through rate measures the percentage of email receivers that click a link included in the outbound email they received.
- Email Response Rate: Out of the total number of emails sent, how many people replied.
- Average/Maximum/Minimum Lead Response Time: A sales KPI regarding the time a receiver of an email, i.e., a lead, takes to reply.
- Average/Maximum number of follow-ups before responding: Statistics regarding the total number of contact attempts a marketer makes before receiving a response of any kind.
- Demos Scheduled: Whenever applicable, it represents the absolute number of demos scheduled during the outbound lead generation. It refers to those leads that have already responded and have expressed interest in the company’s products. Additionally, they have requested for a live demonstration before considering to convert.
Sales Pipeline Metrics
Being able to monitor the progress of the sales team on a higher level is also crucial to get in a blink of an eye a more unobstructed overall view of the performance without having to combine information from multiple graphs.
- Length of the Sales Cycle: The sales cycle is the time starting from the first contact with a potential customer until his deal is finally closed (either won or lost). Its length can be interpreted as an indicator of sales team performance. If it is considerably lower than the average in a particular industry, it may mean that the sales team is doing a good job persuading customers to buy quicker than its competitor sales department.
- Total Opportunities Opened by month: This KPI represents the absolute number of leads that turned into opportunities each month. A lead converts into an opportunity when it has been qualified through email or phone and has met the sales team qualification criteria.
- Total Opportunities Closed by month: The absolute number of opportunities closed each month, either as won or lost.
- Lead to Opportunity Conversion Rate: This Sales KPI Reflects the percentage of leads that turned into opportunities each month.
- Opportunity to Win Conversion Rate: Reflects the percentage of opportunities that turned into paying customers each month.
- Average Contract Value: This metric represents the average value of each sale. By effectively quantifying this value, the sales team can get a grasp about how valuable can a potential opportunity be.
- Percentage of Deals Won: The KPI calculates the percentage of won deals overall closed deals over a specific period, e.g., a month or a quarter.
- Percentage of Deals Lost: The percentage of lost deals over all of the closed deals over a specific time period, e.g., a month or a quarter.
- The overall Trend in Lead Generation (comparison to the number of previous months): A comparative measure between the leads generated this month against those of the past.
Sales Productivity KPIs
- Distribution of Lead per sales reps (Owner): When a lead is created, it gets assigned to an owner. Its owner is responsible for keeping in contact with this specific lead.
- Distribution of Opportunities per sales reps (Owner): The same sales reps own opportunities as they did as leads. This metric, along with the previous one, can reflect how well each sales reps doing. Sales reps with have many owned opportunities are likely more convincing than others.
- Percentage of sales reps achieving 100% quota: Each sales representative has a daily or monthly goal. This can be expressed either as total emails sent out every day/month or as the total number of leads or opportunities that converted into paying customers. By measuring how close each representative came to his goal is a way of evaluating how productive he was.
Revenue Gain Metrics
By integrating sales data with other financial cloud services like Stripe, you can also measure:
- Total Revenue: The ultimate sales KPI that instantly translates selling efforts into value. It can also work as a motivator for the sales team.
- Total Revenue generated from the top 10% customers: By identifying the company’s most valuable customers and tracking the revenue generated by them can give the sales team more insight into the value of each one of them and help them prioritize the company’s customers.
- Revenue by Product: This metric helps the sales team to determine what portion of the total revenue was generated by each product separately. It is even more helpful in the case of new products where this proportion is equal to the value-added by the addition of a new product or service.
- Total Revenue in Sales Pipeline: It is highly correlated with the Average Contract Value KPI mentioned before. While not all potential customers in the sales pipeline are going to convert to paying ones, monitoring their total potential revenue can help the sales time to realize how valuable each one of them is for the company.
|Sync your billing and subscription data from Stripe to any data warehouse. Analytics-ready data with no hassle.
But what about my CRM?
The CRM is a vital ingredient of a sales team. Some popular cloud SaaS CRM are Salesforce, Hubspot, or Pipedrive. Each of those has information that, when you combine it with other data sources from your business, can give you immense insights. At the same time, they can provide you information on your internal sales process.
Salesforce is a leading customer relationship manager (CRM) platform. You can use the internal dashboards, but you can take it many steps ahead and ask any question you want about your sales data. You can understand historical trends, find areas for improvement, and optimize sales operations.
|Sync your sales data from Salesforce to any data warehouse. Analytics-ready data with no hassle.
If you are looking to jumpstart with some important Salesforce KPIs, check 11 Salesforce KPIs for your Sales Dashboard. It includes some SQL code, too, for the SQL savvy people out there.
Hubspot CRM is a popular customer relationship manager (CRM) part of Hubspot’s SaaS offerings. They also offer some vanilla dashboards, but the value is on the data blending. Having your Hubspot CRM data in the same place as your marketing, support, and sales will help you get a holistic understanding of your sales and business performance.
|Sync your sales data from Hubspot CRM to any data warehouse. Analytics-ready data with no hassle.
If you are looking to jumpstart with some important Hubspot CRM KPIs, check 6 Hubspot CRM KPIs for every Sales Manager’s Dashboard (it also includes some SQL code too to save you time).
Pipedrive is a popular customer relationship manager (CRM) SaaS platform. Combining data from Pipedrive with data from your advertisements, or your product engagement, in effect, can help you see how your leads act across touchpoints or which convert better. Segmenting customers, according to product events, can help you understand how they engage with your products or why they churn.
|Sync your sales data from Pipedrive to any data warehouse. Analytics-ready data with no hassle.
If you are looking to jumpstart with some important Pipedrive CRM KPIs, check out these Pipedrive sales analytics KPIs (it also includes some SQL code too to save you time).
Final thoughts on sales KPIs
In today’s world, the competition that a company has to face is greater than ever before. And so is the amount of the available data. Only by taking advantage of it, a company can continue to thrive through continuous monitoring of the right performance indicators and business metrics within a data-driven culture.
Looking for more resources about sales KPIs? Check out the following posts: