Sales KPIs

Sales KPIs are the measure of how well a sales team is performing and the impact of this performance on a company's financial health. By measuring sales KPIs, a company or a sales head can understand the effectiveness of their sales strategies and sharpen them further, addressing the loopholes. If you are a sales manager who wants to set realistic goals for your team, make sure you gauge these 9 KPIs as you guide your company towards growth.

Sales KPIs every sales team should measure

1. Customer Lifetime value

CLV gains the top spot as it highlights the total value a customer in their lifetime can bring to a company. It attempts to measure the first purchase, upcoming purchases, along with the total span of stay of the customer. If you track this, you can understand how happy and loyal your customers are and how much profit each customer brings. And that helps you fine-tune your retention strategies so you can sustain current customers with the right investment.

2. Customer acquisition cost

This is the total cost that your business invests to gain a new customer. It’s calculated by dividing the total cost spent by the total number of customers acquired over a particular period. It’s more of a combination of marketing and sales KPI, depending on who engages with the customer and how. The sales KPI CAC shows how effectively your marketing and sales efforts come together.

3. Win rate

This is a plain and direct sales KPI that shows how great your salespeople are in converting opportunities into sales. Win rate shows the number of signed deals with the number of opportunities presented. It can be a great indicator of your team’s performance that managers often use it to motivate their team to achieve further.

4. Call to close ratio

This sales KPI can be very useful if your sales team majorly depends on callers. The ratio can tell you how many calls it takes to finish a deal. A high call to close ratio shows room for improvement, which has helped many sales managers find workable solutions and finish deals faster.

5. Upsell and cross-sell rates

Offering multiple products or services? You must track this sales KPI then. Upsell and cross-sell rates show you the percentage of customers who choose to purchase additional products or upgrade their current plans. It directly impacts companies’ revenue and sales profits and is practiced religiously by many winning teams.

6. Customer satisfaction

If you send out frequent customer surveys to know more about their sales experience, you aren’t new to this sales KPI. Customer satisfaction is measuring the rate of satisfied customers and finding areas of improvement. It helps in training your salespersons to serve exactly what your customers look for. 

7. Monthly recurring revenue

MRR is a score used by SaaS product companies and other recurrent revenue earners to predict their monthly income by the end. It involves a simple calculation of the total number of customers and their subscription amounts. As you determine the predictive earning, you could set sales targets that need to be achieved more accurately. It also helps finance teams with their investment and scaling plans. 

8. Sales target

Every team has one, doesn’t it? Tracking sales targets of individuals and teams is the main responsibility of any sales manager. It involves tracking down how much value the team has achieved vs. how much is the target value. Expert sales managers often use sales dashboards for quick and regular tracking and day-to-day reporting. It’s incredible how this has worked wonders for them, inching their teams closer to targets before time.

9. Churn rate

Churn rate is the percentage of customers who stopped doing business with a company. Many companies put more stress on churn rate as they believe investing in current customers is much more effective than spending on new customers. Churn rate works especially well for business models like SaaS, where customers spend repetitively. 

Measure Sales KPI using a sales dashboard

There are close to 300 KPIs that every sales head should measure periodically. If you ask whether it’s possible to do it through spreadsheets or reports, it can be quite hard to impossible, depending on how much data one can handle.

That’s why, we suggest you the short and quick way possible - an exclusive sales dashboard dedicated to KPIs you pick to measure.

Why dashboards when I could receive reports from the IT team? 

• Updates every now and then, serving you fresh values on-the-go.

• Ability to compare a present value with historical data and see the % of improvement or reduction. 

• Instant alerts and messages when your KPIs rise or fall below a critical value. 

• Interactive elements with drill-down views. Can get a much deeper perspective into any sales KPI.

• Thoughtful charts and carefully-chosen visual elements for a more pleasant experience. 

Avoid the data mayhem and get access to our sales dashboards. Book a call to customize it the way you want.