Sales Metrics and KPIs You Should Track

15 min read
Nov 3, 2023
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Curious about what makes some sales teams thrive while others struggle? Sales metrics might be the answer. Without a plan for which sales metrics to track, you could be shooting in the dark. You need a plan, a strategy, and a follow-through.

See what key sales metrics to track, how to measure sales performance, and how to motivate sales reps to reach those goals.

What are sales metrics?

Sales metrics are quantifiable measurements used to evaluate and analyze various aspects of a company's sales process and performance. These metrics provide specific data points and key indicators that help companies assess their sales activities, track progress, identify strengths and weaknesses, and make informed decisions. 

Sales metrics can include conversion rates, sales revenue, average deal size, customer acquisition cost, churn rate, and sales cycle length, among others.

By monitoring sales metrics, you can gain valuable insights into your sales strategies and customer behavior and optimize your processes to achieve sales objectives.

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Sales key performance indicators (KPIs)

Sales KPIs are specific metrics critical to measuring the sales team's performance in achieving their strategic goals. Unlike general sales metrics, KPIs focus on evaluating the overall performance and effectiveness of the sales team in relation to the company's strategic goals.

Examples of sales KPIs include:

  1. Monthly sales growth percentage: Measures the increase in sales revenue from one month to the next.
  2. Customer lifetime value (CLV): Predicts the total revenue a business can earn from a customer throughout their relationship.
  3. Market share: The percentage of the total market that a company occupies.
  4. Customer retention rate: Measures the percentage of customers retained over a specific period.
  5. Sales pipeline value: The total worth of all opportunities in the sales pipeline.

Sales KPIs provide a broader view of the sales team's performance. They are used to evaluate the team's effectiveness in achieving specific goals and can serve as a guide for making strategic decisions.

Sales performance metrics you should track

Tracking sales performance metrics is crucial for businesses to measure their success, identify areas for improvement, and make informed decisions. 

Here are examples of key sales metrics to track, along with explanations:

1. Conversion rate

2. Sales revenue

3. Average deal size

4. Customer acquisition cost (CAC)

5. Churn rate

6. Sales pipeline value

7. Lead response time

8. Win rate

9. Customer lifetime value (CLV)

10. Sales forecast accuracy

11. Customer satisfaction score (CSAT)

12. Upsell and cross-sell rates

13. Net promoter score (NPS)

14. Sales to customer acquisition cost ratio (CAC)

15. Lead-to-customer conversion cost

16. Sales velocity

17. Lead qualification rate

18. Sales to upsell ratio

19. Customer effort score (CES)

20. Sales by region or territory

21. Sales by product or service

22. Sales by lead source

23. Sales cycle win rate

24. Customer retention cost

By tracking these sales metrics, you can gain a nuanced understanding of your sales processes, customer interactions, and market dynamics. Use this data to adapt strategies, improve customer relationships, and drive sustainable growth.

Read more about how to succeed in sales.

sales performance management

SaaS sales metrics

SaaS (Software as a Service) companies often rely on specific sales metrics tailored to their subscription-based business model. These metrics help them evaluate customer acquisition, retention, and overall revenue generation. They can also be considered KPIs, as they provide a high-level view of performance and are directly tied to the company's overall success. 

Here are key SaaS sales KPIs and metrics:

1. Monthly recurring revenue (MRR)

2. Annual recurring revenue (ARR)

3. Customer churn rate

4. Net revenue retention rate (NRR)

5. Customer acquisition cost (CAC) payback period

 6. CLV to CAC ratio

7. Expansion Revenue Rate

8. Lead-to-customer conversion rate

9. Free trial conversion rate

10. Customer health score

These SaaS-specific sales metrics provide valuable insights into customer behavior, revenue generation, and business sustainability. By analyzing these metrics, you can make data-driven decisions to optimize sales, marketing, and customer success strategies for long-term growth and profitability.

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Why your sales team should track sales metrics and KPIs

From a sales performance management perspective, tracking sales metrics and KPIs is critical for several reasons. But from a team's perspective, it can significantly enhance sales reps' productivity and motivation.

Here's why tracking sales metrics is important and how it contributes to productivity and business success:

Tracking sales metrics not only provides valuable insights into your business but also enhances the productivity of sales reps. It helps them work smarter, focus on high-impact activities, and ultimately drive better results.

Improving sales performance within the team with sales productivity metrics

Now let's focus on the people who can help you achieve everything mentioned above: sales representatives. Find out how you can measure the sales performance of your team and how you can all benefit from doing so:

1. Sales revenue per sales rep

2. Number of deals closed

3. Average deal size per pep

4. Sales activities per day

5. Sales cycle length

6. Lead response time

7. Quote-to-close ratio

8. Customer follow-up rate

9. Sales productivity index

Increase your income

Combining insightful sales leaders with dedicated sales reps and providing them with advanced sales tools is a good start. But if you want your business to thrive, measure the most important sales metrics and focus on improving your sales performance.

Every conversion rate, customer satisfaction score, and deal closed is more than just a number. With the right approach, sales metrics can become a catalyst for progress, inspiring teams to exceed their goals and grow your business. And isn't that what you want?

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