18 Sales KPIs Managers need to know

Understand the most important KPIs for Sales and After-Sales. This is your guide with explanation and introduction of the top Sales KPIs.

Sign up for free!

Sales managers need to be aware of specific key performance indicators (KPIs) to track their sales teams’ progress and department performance. While many different KPIs could be tracked, knowing which ones are most important is essential.

This article will discuss 18 of the most critical Sales KPIs managers should be tracking. We will explain each KPI and provide examples of how it can be used to track progress and improve sales performance.

Further Read: Ultimate Guide on KPIs – Incl. List of 200 KPIs for Businesses

What are Sales KPIs?

A Sales KPI, or Key Performance Indicator, is a metric used to track and measure the success of a sales team or individual sales representative. Sales KPIs can vary depending on the business but typically include sales revenue, number of sales, average sale price, and number of new customers acquired.

Sales managers use sales KPIs to track their team’s progress and identify areas where they may need to make changes to improve performance. By monitoring and analyzing sales KPIs over time, businesses can identify trends and patterns that may help them improve their sales strategy.

Why is it essential to track Sales KPIs?

The importance of tracking sales KPIs for managers, employees, and top management cannot be overemphasized. Sales KPIs provide valuable insights into a company’s sales process and representatives. They can help managers identify areas where they need to provide more training or support, help employees track their progress and productivity, and help top management understand how their department is performing.

Sales KPIs are essential for driving sales forward. By tracking pipeline health, lead generation, general activity, and productivity, companies can gain valuable insights into their sales process and representatives. The information from sales KPIs can help businesses improve their sales strategy and make data-driven decisions about where to allocate resources to drive more revenue.

Overview of the most important Sales KPIs

  • Sales Growth (YoY, QoQ. MoM)
  • Sales Target %
  • Customer Acquisition Cost (CAC)
  • Customer Churn Rate
  • Lead Response Time
  • Lead Conversion %
  • Lead to Opportunity Conversion %
  • New Qualified Opportunities
  • Total Pipeline Value
  • Lead-to-Opportunity %
  • Opportunity-to-Order %
  • Average Order/Purchase Value
  • Average Sales Cycle Time / Lenght
  • Upsell %
  • Cross-Sell %
  • Sales Volume by Location
  • Revenue per Sales Rep
  • Profit Maring per Sales Rep

Explanation of 18 critical Sales KPIs

Sales Growth (YoY, QoQ. MoM)

When measuring and managing sales growth, there are a few key performance indicators (KPIs) that businesses should focus on. YoY (year-over-year) growth is one of the most commonly used metrics, as it shows how much a company’s sales have grown in the previous year. QoQ (quarter-over-quarter) growth can help track shorter-term trends, while MoM (month-over-month) growth can indicate whether or not sales are increasing or decreasing on a more immediate scale.

Sales Target %

To effectively manage a company’s sales performance, tracking and reviewing the sales target percentage is essential. This percentage will give you an idea of how close your business is to achieving its targets and help make corrections/adjustments where necessary.

Customer Acquisition Cost (CAC)

Customer acquisition cost (CAC) is a crucial metric for sales management. It is the total amount spent on acquiring new customers divided by the number of new customers. By understanding and tracking CAC, businesses can measure the effectiveness of their sales efforts and make adjustments where necessary. A high CAC can indicate that a company is spending too much money on acquiring new customers, while a low CAC suggests that they are getting good value for their investment. Tracking CAC can help businesses optimize their sales efforts to get the most bang for their buck.

Customer Churn Rate

The customer churn rate is an essential metric for sales management. It is the percentage of customers who discontinue their relationship with a company within a given period. By understanding and tracking the customer churn rate, businesses can measure the effectiveness of their sales efforts and make adjustments where necessary. A high customer churn rate can indicate that a company is losing too many customers, while a low customer churn rate suggests retaining more customers than they are losing. Tracking the customer churn rate can help businesses optimize their sales efforts to keep more customers and improve profits.

Lead Response Time

Sales managers need to know how long it takes to respond to leads to gauge their company’s effectiveness at converting leads into customers. By tracking the average lead response time, businesses can ensure they are not losing potential customers due to a slow response time. Furthermore, sales managers can use this metric to set goals for themselves and their team members regarding lead response time. A shorter lead response time indicates that a company is responding quickly and effectively to leads, while a longer lead response time suggests that more work needs to be done in this area.

Lead Conversion %

Lead conversion rates are an essential metric for sales management. It is the percentage of leads that are converted into customers. By understanding and tracking the lead conversion rate, businesses can measure the effectiveness of their sales efforts and make adjustments where necessary. A high lead conversion rate suggests that a company is good at converting leads into customers, while a low lead conversion rate indicates that they need to work on this area. Tracking the lead conversion rate can help businesses optimize their sales efforts to get the most out of their leads.

Lead to Opportunity Conversion %

Lead opportunity conversion rates are an essential metric for sales management. It is the percentage of opportunities that are converted into customers. By understanding and tracking the lead opportunity conversion rate, businesses can measure the effectiveness of their sales efforts and make adjustments where necessary. A high lead opportunity conversion rate suggests that a company is good at converting leads into customers. In contrast, a low lead opportunity conversion rate indicates that they must work on this area. Tracking the lead opportunity conversion rate can help businesses optimize their sales efforts to get the most out of their leads.

New Qualified Opportunities

Sales managers need to know how many new qualified opportunities their team generates to gauge their company’s effectiveness at converting leads into customers. By tracking the number of new suitable opportunities, businesses can ensure that they are not losing potential customers due to a lack of leads. Furthermore, sales managers can use this metric to set goals for themselves and their team members about the number of new qualified opportunities generated. A higher number of new qualified opportunities suggests that a company is good at converting leads into customers. A lower number indicates that they need to work on this area.

Total Pipeline Value

The total pipeline value is a performance indicator for sales that measures the total worth of all opportunities in the sales pipeline. By understanding and tracking the total pipeline value, businesses can measure the effectiveness of their sales efforts and make adjustments where necessary. A high total pipeline value suggests that a company is good at converting leads into customers. In contrast, a low total pipeline value indicates that they need to work on the pipeline and the funnel.

Lead-to-Opportunity %

The lead-to-opportunity percentage is a metric used by sales managers to track the effectiveness of their team at converting leads into customers. It is the percentage of opportunities that are converted into customers. By understanding and monitoring the lead-to-opportunity percentage, businesses can ensure that they are not losing potential customers due to a lack of leads. Furthermore, sales managers can use this metric to set goals for themselves and their team members regarding the number of opportunities converted into customers. A higher number of opportunities converted into customers suggests that a company is good at converting leads into customers.

Opportunity-to-Order %

The opportunity-to-order percentage is a metric used by sales managers to track the effectiveness of their team at converting opportunities into orders. It is the percentage of orders that are converted into customers. By understanding and monitoring the opportunity-to-order rate, businesses can ensure that they are not losing potential customers due to a lack of opportunities. Furthermore, sales managers can use this metric to set goals for themselves and their team members concerning the number of orders converted into customers. A higher number of orders converted into customers suggests that a company is good at converting opportunities into orders.

Average Order/Purchase Value

The average purchase value is the average amount a customer spends on a single purchase. By understanding and tracking the average purchase value, businesses can measure the effectiveness of their sales efforts and make adjustments where necessary. A high average purchase value suggests that a company is good at converting leads into customers.

Average Sales Cycle Time / Lenght

The average sales cycle time is the average time it takes for a customer to go from being a lead to making a purchase. By understanding and tracking the average sales cycle time, businesses can measure the effectiveness of their sales efforts and make adjustments where necessary. A high average sales cycle time suggests that a company is good at converting leads into customers, while a low average sales cycle time indicates that they need to work on this area. Furthermore, businesses can use this metric to set goals for themselves and their team members about the average time it takes for a customer to go from being a lead to making a purchase. A shorter average sales cycle time suggests that a company is good at converting leads into customers. In comparison, a longer average sales cycle indicates customer closing problems.

Upsell %

The upsell percentage is a metric used by businesses to measure the effectiveness of their sales efforts in converting leads into customers. Upselling convinces customers to purchase a more expensive product or service than they initially intended to buy. By understanding and tracking the upsell percentage, businesses can ensure they are not losing potential customers due to a lack of upselling opportunities. Furthermore, companies can use this metric to set goals for themselves and their team members regarding the number of leads converted into customers who purchase a more expensive product or service than they initially intended to buy. A higher upsell percentage suggests that a company is good at converting leads into customers, while a lower upsell percentage indicates that they need to work on this area. This metric can also impact the Customer Lifetime Value (CLV) as an essential metric and open up new markets and new market opportunities.

Cross-Sell %

Cross-selling is convincing a customer to purchase additional products or services related to the ones they are already buying. Cross-selling can be an effective way for businesses to increase their revenue. Customers who buy other products or services are more likely to be loyal and return for future purchases. By understanding and tracking the cross-sell percentage, businesses can ensure they are not losing potential customers due to a lack of cross-selling opportunities. Companies can use this metric to set goals for themselves and their team members regarding the number of leads converted into customers who also purchase additional products or services related to the ones they are already buying. A higher cross-sell percentage suggests that a company is good at converting leads into customers. In comparison, a lower cross-sell percentage indicates that they need to work on this area and have an impact on the Customer Lifetime Value (CLV).

Sales Volume by Location

Many companies track sales volumes by product lines or categories, but this can be misleading when understanding how well the company is performing. By breaking down sales volume by location, companies can get a more accurate picture of where they are making money and where they need to make changes to improve their performance. This information is critical for managing company strategy and sales efforts.

Revenue per Sales Rep

No company can afford not to track revenue per sales rep. It is one of the most critical performance indicators a company has. By following revenue per sales rep, you can see how each individual performs and where your money is being made (or lost). You can also use this information to adjust your sales strategies and ensure you are putting your resources in the right places.

Profit Maring per Sales Rep

Not every sales rep performs best; heavy discounts and bad negotiation can also hurt the profit margin. Sales managers must closely monitor the Profit-Margin-per-Sales-Rep to determine who contributes most to the bottom line. In addition, it’s essential to be aware of any negative trends that could hurt profits.

Benjamin Talin

Benjamin Talin is founder of MoreThanDigital, a serial entrepreneur and innovator. He has founded countless businesses, ranging in age from 13 to the present. His passion is using technology and innovation to change the status quo, and his experience covers everything from marketing to product development to new technology strategy. One of Benjamin's great desires is to share his expertise with others, and he frequently speaks at conferences on a variety of topics related to entrepreneurship, leadership, and innovation. Additionally, he advises governments, ministries and EU commissions on issues such as education, economic development, digitalization, and the technological future.

Related Posts

20 Financial KPIs Managers need to know

20 Financial KPIs Managers need to know

Most businesses start by tracking their financial key performance indicators (KPIs), no matter how big or small. This is because they are the most easily accessible and visible numbers that give a snapshot of how the company is doing. Financial KPIs can be divided...