Sales metrics and KPIs.

 sales kpi1Sales metrics and KPIs. 

In today’s ultra competitive business landscape, it’s essential that your sales team has an objective view of their performance. The days of relying on “gut feel” are long gone, and maintaining a competitive edge is about cultivating a data driven culture. At the center of that culture is the need to monitor relevant and actionable sales KPIs and metrics.

Knowing which KPIs are important for your sales team can be difficult, which is why we’ve put together this list of KPIs. Check out the top 10 sales KPIs and metrics our customers use.

sales KPI
  1. Product performance. This sales KPI measures and ranks your products based on revenue performance so you know what products are selling well and which need to be reassessed. Variations on this sales metric can show top performing products, top performing sales reps, or the bottom 10% of sales. It’s important to monitor this metric over an appropriate time frame to account for inconsistencies in the data.
    Audience: Sales Reps, Managers, Executives
    Calculation: Rank top 3/10/25 performers by sales revenue
Sales KPI: Sales Growth
  1. Sales Growth. This is a key sales metric for any organization since it indicates the pace at which your organization is growing. It’s one thing to maintain current sales, another to grow sales year over year, or even month over month. No matter the time frame you are using to measure this KPI, use it to encourage your team to make more sales in each of their sales calls. If one thing is true about sales professionals, it’s that they are goal-oriented.
    Audience: Sales Reps, Managers, Executives
    Calculation: Previous period sales revenue / Current period sales revenue
Sales KPI: Demographic Metrics
  1. Demographic Metrics. This type of sales metric is essential to all sales organizations because it provides key information about who is buying your product. No matter the size of your organization, measuring demographics metrics is essential for knowing your ability to penetrate your target market. In the case of the example on the left, the metric is being used to monitor regional sales on a global level.
    Audience: Sales Reps, Managers, Executives
    Calculation: Total revenue per demographic (age, sex, location, etc)
Sales KPI: Sales per Rep
  1. Sales Per Rep. This sales metric measures the ability of each of your sales reps to generate revenue for your organization. The most important part in formulating this metric is establishing a baseline. This baseline should account for differences between reps like seniority, location (in office or on the road), and products sold. It’s also worth noting that sales teams are by nature competitive, so providing ubiquitous access to this metric may provide incentive to your reps and foster a healthy level of competition amongst your team.
    Audience: Sales Reps, Managers, Executives
    Calculation: Actual sales per rep per time period
Sales KPI: Quote to Close Ratio
  1. Quote To Close Ratio. This sales KPI measures the number of formal quotes compared to sales closed. A formal quote is preferable over an informal quote because it demonstrates a specific level of customer interest. This KPI can also be couched with other key sales metrics (or marketing metrics) like lead to quote, or lead to win ratios. In addition to these metrics, this KPI can also take into consideration KPIs like cost per lead and cost per win.
    Audience: Managers, Executives
    Calculation: # of quotes / # of wins
Sales KPI: Opportunities
  1. Opportunities. This sales metric organizes each opportunity your sales team is cultivating and assigns them a status value such as “qualified” or “proposal.” Each opportunity should also have an estimated value associated with them, so sales reps can prioritize their time according to the likelihood of a win (status) and the significance of a win (estimated value). Ideally, this sales KPI is monitored in real-time since the status of each opportunity can change at any time, and new opportunities continuously stream in.
    Audience: Sales Reps, Managers, Executives
    Calculation: Value of Sale * Opportunity Status Percentage
Sales KPI: Bookings
  1. Bookings. This sales KPI measures bookings for a given time period, where a booking is a won / signed / committed sale. Bookings are not necessarily invoiceable until you have delivered the product or completed the services. Nevertheless, bookings provide an important view of revenue generated for your organization. This is a high level sales metric, designed to be consumed by executives and financial analysts.
    Audience: Analysts, Executives
    Calculation: Sum of bookings $ Sales – (Average cost per transaction * Total # of bookings) = Estimated booking revenue for period of time
Sales KPI: Sales by Contact Method
  1. Sales by Contact Method. This sales KPI monitors which contact methods are generating sales, such as email, telephone, or in-person contacts. It goes without saying that knowing which contact method is the most effective at generating sales is important, but it’s also important to understand the cost involved in each contact method, as well as revenue generated for each method. This is an essential sales KPI for any organization.
    Audience: Sales Reps, Managers, Executives
    Calculation: Sales per contact method / Total revenue
Sales KPI: Average Purchase Value
  1. Average Purchase Value. This is a quintessential sales KPI that monitors the average value of each sale your team makes. This KPI should also integrate other key metrics like units per transaction to provide an in-depth view of sales trends. This KPI can be used to track trends for single customers, regions, products, or organization wide sales. Use this KPI to align objectives and to make projections based on previous results.
    Audience: Sales Reps, Managers, Executives
    Calculation: Total sales / # of sales = Average sale value
Sales KPI: Sales Quota/Target
  1. Sales Target. This sales KPI speaks to the competitive nature of your sales team by framing their current performance against a short-term objective. This KPI integrates two key sales’ metrics: sales quote attainment and sales forecast accuracy. Setting an appropriate sales target requires a deft touch. Goals that reach too high can drain morale, whereas a goal set too low won’t properly motivate your team. The key is to set a goal that is based on reality but also pushes your team to do their best.
    Audience: Sales Reps, Managers, Executives
    Calculation: New wins MTD vs quota MTD or wins previous MTD

 

source http://www.klipfolio.com/resources/kpi-examples-top-sales-metrics

 

Leave a Reply

Your email address will not be published. Required fields are marked *