Which sales KPIs should I be tracking?

Stuart Kinsey Published: 

Most KPIs for the sale department are concentrated on revenue. Either collectively as in sales teams or they may be segmented by individual users ‘typical revenue banding’ or ‘product type’.

A business measures the success of sales as delivering, and exceeding the targets set out in the business revenue goals. Most companies do not rely solely on headline sales revenue for measuring success, there are expectations of revenue based on process centric KPIs; such as the more cold calls made should lead to more sales - if a consistent conversion rate is achieved.

Here is a complimentary blend of process and revenue KPIs for a sales department.

Closing efficiency ratio

The ratio between the number of contacts (email, calls etc) that a person makes by the number of sales closed. Although this KPI deals with efficiency, when used in conjunction with a KPI for the average revenue value per sales it provides a good overview of an effective / efficient sales person / department.

Sales cycle

Sales cycle KPIs generally refer to the amount of time a sales person takes to generate revenue from a first contact. For example if it takes 30 days from first contact to close of sale this figure can be viewed against other teams / sales employees to evaluate performance.

New versus repeated business.

This is a ratio of sales revenue generated by new customers compared to repeat customers. This KPI helps with overall trending of customers but also highlights teams or individuals who are targeted with expanding their customer revenue base.

Retention Rate

Typically a service / contract based sales require a KPI to measure the retention rate once the contract or service has expired. By tracking this rate businesses can determine the effectiveness of the sales individual or department at client retention against the average.

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