Collecting and measuring team performance through KPIs is a great way to assess the effectiveness of sales processes. This is because KPIs are extremely informative when it comes to how well, or how poorly, sales teams are completing goals. It is important to select a few sales KPIs to focus on, as opposed to try to improve them all at once. Choose the ones that are more relevant to your company goals and measure them over time to get more visibility and control over your sales performance. Here is a list of 14 Sales KPIs that are commonly used by sales organizations:
- Average win rate – What is the ratio of closed won deals with respect to the total number of won and lost deals?
- Average sales cycle length – How long does it take, on average, to close deals? The shorter the sales cycle to a successful deal, the better.
- Average deal size – On average, what is the worth of deals sellers are managing at any given point in the sales process.
- Time spent selling – This KPI compares the time sales team members spend selling, as opposed to time spent engaged in other operational tasks, such as training sessions, internal meetings, and paperwork.
- Lead response time – How long does it take for leads to positively respond to sales team members’ pitches or calls to action?
- Forecast accuracy – This KPI tabulates the rate of error of prior forecasts in comparison to actual results or performance, enabling sales teams to better understand how and where to direct their efforts.
- Content usage – This KPI measures how much a piece of content is accessed and used by sales team members during the sales process, furthering successful sales deal completion. This knowledge allows managers to minimize the wasting of time, money and human resources spent on developing the content – and on the sales process itself.
- New leads – How are your sales agents contributing to the generation of new leads and the expansion of the company as a whole?
- Client acquisition rates – How many new leads convert to paying customers? This KPI should be compared to the number of new leads generated, as well as to the number of prospective leads any given agent initially reaches out to.
- Engagement – How many interactions do your sales agents have with customers and how can these communications be qualified? This is the main KPI that can be broken down into who opened a given file, who read it, what component was engaged with, etc., supporting your company’s sales process goals.
- Competitor pricing – Keeping track of your competitor’s pricing rates can give you an added competitive edge, helping sales agents engage with customers and make sales.
- Increased upsell and cross-sell rates – This sales KPI enables sales agents to identify whether certain verticals or segments might respond better to certain upsell or cross-sell pitches. Monitoring upsell numbers enables sales teams to only present certain offers to those customers likely to benefit from them and convert.
- Understanding the voice of the customer – Is your sales team aligned with the business’s customer’s experiences with and expectations for your products or services, positioning themselves to respond to any relevant needs? For this KPI to be effective, sales teams must gather and use information from multiple touchpoints in a timely fashion.
- Net promoter score – How likely, on a scale from 0-10, our customers to recommend your product to others? This KPI helps you assess the customer’s overall satisfaction with and loyalty to the company, enabling more effective targeting and nurturing efforts.
How to Prioritize your KPIs?
There is a natural logic to the prioritization of KPIs, the key is to understand the dependency of one to another. You should always know the end-point you have in mind, and from that, you should prioritize from beginning to end of the Sales Funnel. An example of this could be ‘New Leads’ and ‘Lead Response Time’ first, whereas ‘client acquisition rates’ is a something for later.
KPIs can always be manipulated, and the higher up you are in the Leadership hierarchy the harder it is to get to the root truths. This is why a qualitative lens for understanding, is as important as the quantitative lens.
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