In this post we explain what sales KPIs are and present 20 KPIs to measure the performance of your business.
What are sales KPIs?
Man looking at his cell phone surprised in reference to the importance of knowing sales KPIs
They are called this because of their acronym in English (Key Performance Indicators), which translates as key performance indicators, that is, metrics that allow better management of a company's sales process.
They therefore reflect the key actions and results of each stage of the sales funnel. Each KPI must be specific and show a truly useful piece of data, whether it is about sales, customers or employees.
For this reason, they account for the results and activities related to the sales plan, and for this reason, it is essential that they are aligned with the sales objectives, are based on real data and are understandable.
It is important to recognize that modern sales teams put a large part of their efforts into converting qualified prospects into customers, and therefore increasing their retention rate. It is true that the effectiveness and choice of each KPI must be in accordance with the sales and marketing business models implemented.
Considering that all sales KPIs will help sales teams grow, here are the top 20 sales KPIs that are analyzed within modern sales teams.
20 Sales KPIs in a business
Tablet screen with statistical growth graphs in reference to sales KPIs
1. Tests or Trials
This is a KPI that applies to both marketing and sales areas. Tests take into account the number of account logins during a given period and allow you to recognize who could become potential future customers.
This is a very fruitful KPI to measure impact, as the higher the volume of trial starts, the higher the volume of qualified leads, making it a powerful resource for closing sales.
2. Qualifying Leads for Sales or SQL
This is the direct result of testing, because when a potential client meets certain conditions within the sales process, they become a qualified potential client and go on to become an SQL, that is, those who express the intention to buy.
The acronym SQL stands for “Sales Qualified Lead” and in Spanish it means “Cliente potencial cualificado” (qualified potential client). For the sales team, they are understood as prospects and are considered ready
to begin the purchasing cycle.
It is one of the most important sales KPIs because the higher the number of SQLs, the greater the spectrum of opportunities to convert them into customers.
3. Sales opportunity detector
Sales opportunities allow sales teams to recognize which of them could be considered high intention and which are worth taking advantage of.
This is one of the KPIs for ranking prospects based on the likelihood of them becoming a closed deal. It should be noted that each prospect has an estimated purchase value, so
it is best to rank them based on the likelihood of winning once the team has gathered a sufficient database.
4. Calculation of monthly onboarding calls
Onboarding calls allow you to see how many new prospects have been added to your database and are often evidence of a critical step toward closing a sales deal.
Like many of the sales KPIs we'll cover throughout this article, this metric can be measured to assess individual employee performance.
5. Call and email volume per sales representative
Call volume, whether for the purpose of promoting the offer and its follow-up, or the use of email, refers to the number of contacts that each
sales representative has made with their potential clients.
This type of KPI can be studied much more in the case of a call being answered, or when the email being opened, by evaluating other aspects such as the time of each call,
the level of interest registered, the calls to action executed and how many prospects have been discovered through these channels.
6. Sales cycle duration
Sales cycle length refers to the average time it takes to close a deal, and makes it easier for sales teams to recognize how much the average sale generates and for how long.
The most interesting thing about this KPI is that it will help you set realistic sales goals and forecast revenue, as well as provide an estimated time frame within which your efforts and resources should be deployed on average to win over each customer and improve overall sales .
7. Number of sales by each of the representatives
Sales per rep is a powerful indicator that allows sales leaders to understand the reach of each member of the sales team based on the number of contacts made.
It is one of the most interesting sales KPIs when determining a sales baseline and suggesting personal goals. The best thing is to be able to glimpse the strengths and weaknesses of each of the representatives and promote solutions.
However, it is pertinent to use this tool appropriately, because the longer a sales representative takes to close a deal, this could be an indicator that their conversation has value and the ability to retain the customer for longer.
In this sense, it is not recommended to use this KPI to encourage a climate of competition and comparison between representatives, but rather to use it as a performance metric for each one.
8. Contact to customer conversion rate
It is one of the most modern sales KPIs , and focuses on tracking the number of customers who have made purchases.
These contacts can be existing customers, former customers, or even qualified leads who have some kind of relationship with the company.
This KPI should be used to quantify the efficiency of the sales process to maintain and grow relationships with existing customers.
It can also be used as a way to evaluate customer relationship australia whatsapp number data management. Ideally, all of this data should be managed with some type of CRM .
9. Test conversion rate
It measures the percentage of users who have been directed to a paid account from a product or service trial.
It is an excellent resource for identifying the target audience, since by observing the rates, you can identify demographic data and the companies that are likely to be most successful with the product.
The central objective is to focus on attracting users who are most likely to convert.
10. Sales reservation index
They are responsible for calculating the total profits as established in a closed deal or contract within a specific period.
Bookings can be understood as one of the KPIs that drive modern sales teams, and can be divided into different categories, such as sales bookings by region and sales bookings by rep.
Person looking at sales reports on their computer and cell phone in reference to sales KPIs
