Sales KPIs Every Sales Manager Should Track

Sales KPIs are what sales managers use to gauge performance.

Sales managers are always looking for ways to improve their business performance. Measuring your sales KPIs is a great way to start! This article will discuss 21 sales KPIs every manager should measure now.

Sales managers are often overwhelmed by the amount of data available to them. Choosing the right sales KPIs is essential and can help you better understand your business’s performance.

You’re a sales manager, and you’re unsure what sales KPIs to measure in your business.

Sales managers must understand their business performance using meaningful data; sales KPIs are key!

Different sales metrics, such as revenue per employee or customer acquisition cost, can be used as KPIs. The important thing is to choose metrics that will help you better understand how your company is performing over time.

What are sales KPIs

Before we get started, let’s first define what a KPI is. A KPI, or key performance indicator, is a metric that you use to measure the progress of your business over time. KPIs can be used to track everything from website traffic to customer satisfaction.

Sales KPIs measure a business’s success. Examples include revenue per employee, number of accounts managed, and customer acquisition cost. Sales metrics can be measured in dollar terms or as percentages.

What is a KPI?

A KPI is a key performance indicator. It is a metric you use to measure the progress of your business over time. KPIs can be used to track everything from website traffic to customer satisfaction.

Why are sales KPIs important?

Sales KPIs are important because they help sales managers understand how their team performs and improve. They also allow businesses to track their progress and make changes accordingly.

What are some common sales KPIs?

Some common sales KPIs include:

• Revenue per employee
• Revenue per customer acquisition cost
• Number of active accounts
• Customer satisfaction score

Number of leads generated

• Conversion rate
• Total sales generated

How can sales managers use KPIs to improve their business?

Considerations when creating your sales KPI (for example, what data should you measure)

When creating your own sales KPI, there are a few factors to consider:

• What data should you measure?
• What is the goal of your KPI?
• How will you track progress over time?
• What is the timeframe you are measuring progress in?
• How will this KPI impact business decisions?

Measuring the right data is essential when creating a sales KPI. You should choose metrics to help you understand your team’s performance and where they can improve. The goal of your KPI should also be considered.

For example, if you want to increase revenue per employee, you would track the total revenue generated by employees.

It is also important to track progress over time. You should set a timeframe to measure progress and track your KPI regularly. This will help you understand how your business performs over time and make necessary changes.

Finally, it’s important to consider how your KPI will impact business decisions. For example, if you increase the number of leads generated, you may need more salespeople to follow up on those leads.

Sales manager responsibilities

Sales managers have a lot of responsibilities, including:

• Managing a sales team
• Coaching and training sales reps
• Developing sales strategies
• Analyzing sales data
• Creating reports
• Ensuring customer satisfaction

The list could go on! However, a sales manager’s most important responsibility is to ensure that their team is meeting or exceeding its sales goals.

Setting goals for the team, providing coaching and training, and creating a positive work environment can help achieve this.

Sales managers can use KPIs to improve their business in several ways.

• Firstly, they can track how their team performs and make changes accordingly.
• Secondly, they can use KPIs to identify areas to improve.
• Finally, by tracking KPIs over time, businesses can see their progress and make necessary changes.

#1 – Keep it simple

It’s often recommended that sales managers keep their KPIs to a minimum of 3-5 metrics because too many metrics will lead to analysis paralysis.

#2 – Set goals

Setting goals for your sales KPIs is essential if you want them to be effective! Goals should be specific, measurable, achievable, realistic, and time-bound (SMART).

#3 – Use data to track progress

Tracking your progress over time is key to understanding how your business performs. You can do this by comparing your current KPIs against past metrics.

21 sales KPIs that every manager should measure now.

Now that we have a basic understanding of sales KPIs and why they are important, let’s look at 21 sales KPIs every manager should measure in 2023.

1. Revenue per employee
2. Revenue per customer acquisition cost
3. Number of active accounts
4. Customer satisfaction score
5. Net promoter score (NPS)
6. Percentage of customers who are repeat buyers
7. Average order value
8. Gross margin % 
9. Total sales
10. Number of leads generated
11. MQL to SAL ratio
12. Sales pipeline conversion rate
13. The average revenue per customer account
14. Number of social media followers/profile visits
15. Customer acquisition cost (CAC) ratio
16. Revenue growth % over the past year
17. Lead quality score (ease of conversion, low or high close rates, etc.)
18. Percentage of customers who are ready to purchase
19. The open rate for emails sent and the number of emails opened per day/week/month
20. Social media engagement metrics (likes and shares) and frequency
21. Blog subscriber count and blog subscribers’ posts published in previous months

Example of a KPI

Example of a Sales KPI:

1. Site traffic, or how many people visit your website each week.
2. Sales growth rate: Tracking year-over-year sales growth provides a snapshot of your business’s performance and whether it is expanding.
3. Net promoter score (NPS) measures customer loyalty and the likelihood of customers recommending your company to others.
4. Customer acquisition costs (CACs) track the cost of attracting new customers, allowing you to see which channels are most effective in acquiring them.
5. Churn rate: the percentage of customers who cancel their subscriptions or contracts with your company within a given time.
6. Average sale value: This tracks the average amount customers spend purchasing from you.
7. Gross margin measures how much of each dollar you earn is used to cover your costs, making it a key indicator of profitability.
8. Customer lifetime value (CLV) estimates how much profit a customer will likely generate throughout their relationship with your company.
9. Product mix: understanding what products are selling and which are not can help you decide which ones to focus on.
10. Sales cycle time tracks how long it takes potential customers to go from initial contact to making a purchase.
11. Salesperson productivity: measuring how much each salesperson contributes to revenue can help identify underperforming staff and determine whether they need additional training or support.
12. Customer satisfaction: Tracking customer satisfaction lets you know whether your customers are happy with the work of your sales team and whether they are likely to be loyal.
13. Competitor comparison: tracking which competitor deals are most profitable gives you an idea of how well you are doing compared to competitors.
14. Sales rep activity might include time spent on setting up meetings or speaking with prospects; it can identify underperforming staff who aren’t busy enough.
15. Pipeline value: Tracking the value of leads in your pipeline provides insight into how much money is coming in from new business, and when that business is likely to close.
16. Lead conversion rate: Calculating the number of leads that turn into paying customers gives you a sense of how well your team attracts and converts leads.
17. Email open and click-through rates: These metrics can help you determine the effectiveness of your email marketing campaigns.
18. Social media followers: Tracking your number of social media followers provides a measure of your brand’s reach.
19. Website visits: Counting the number of people who visit your website each week provides a snapshot of how popular your content is.
20. Landing page conversion rate: This tracks how many visitors to a specific landing page make a purchase or sign up for a trial offer.
21. Inbound links: the number of inbound links to your website tells you how much other websites are talking about you, and can be used to compare with competitor sites.

HubSpot CRM KPI examples

1. Sales pipeline value: the total value of all leads in your sales pipeline.
2. Time from lead to close: the average time for leads to convert into paying customers. Below are some specific examples of sales KPIs that you may want to track:
3. Cost of sales: This metric calculates the cost of each sale for your company, including expenses such as labor and marketing costs necessary to make that particular sale.
4. Conversion rate: This measures how many unqualified leads are converted into paying customers, also known as “close rates.”
5. Churn rate: This measures how many customers are left during a specific time frame (monthly, weekly, etc.) and includes any cancellations or non-renewals of service subscriptions.
6. Revenue per customer: How much revenue you average from each customer over a given period (i.e., monthly, annually, etc.).
7. Gross margin: the difference between your revenue and the cost of goods sold. This metric measures how much profit your company makes on each sale.
8. Lead sources: where your leads are coming from (i.e., social media, organic search, paid search, etc.).
9. Lead conversion rate: the percentage of leads that convert into paying customers.
10. Customer lifetime value: the average amount of money a customer spends with your company throughout their relationship with you.
11. Customer acquisition costs: how much it costs to acquire a new customer.
12. Sales cycle time: how long it takes from the moment generated to when they become customers.
13. Lead volume: the number of leads that convert into paying customers over a given time frame (quarterly, annually, etc.).
14. Relative sales performance by region or state: how employees in one region compare to other regions or states.
15. New versus lost customers: how many new customers do you sign up with compared to the number of customers who went elsewhere during a specific timeframe (i.e., monthly, quarterly, yearly).
16. Many prospects per rep: How many unique targets are assigned to each sales rep within an organization?

While not an exhaustive list, these 21 sales KPIs provide a snapshot of the most important metrics to track to understand your business’s performance.

Tracking these KPIs will help you make better decisions about where to focus your efforts to boost sales and grow your company.

Sales managers have always been under pressure to deliver results and exceed quotas, but meeting or exceeding targets is more essential than ever in today’s highly competitive market.

While there’s no one-size-fits-all solution to sales success, understanding which metrics should be monitored closely and which ones should take precedence over others is key.

The benefits of tracking and analyzing your sales KPIs over time

There are several benefits to tracking and analyzing your sales KPIs over time.

First, it provides a snapshot of your business’s current performance. This information can help you make better decisions about focusing your efforts to boost sales and grow your company.

Second, tracking sales KPIs over time allows you to measure the effectiveness of your sales team and individual sales reps. This information can help you identify underperforming staff and determine whether they need additional training or support.

Third, analyzing your sales KPIs allows you to benchmark your company against its competitors. Doing so gives you an idea of how well you are doing compared to the competition and helps you identify areas for improvement.

Fourth, tracking sales KPIs can help you fine-tune your sales processes to make them more effective. Finally, doing so allows you to measure the return on investment of your marketing and sales efforts.

While not an exhaustive list, these 21 sales KPIs provide a snapshot of the most important metrics to track for understanding your business’s performance. So be sure to include them as part of your regular reporting process! Tracking these KPIs will help you make better decisions about focusing your efforts to boost sales and grow your company.

KPIs for Sales Managers

A sales manager’s KPIs can be broken down into five categories:

• Personal KPI
• Sales Team KPI
• Company KPI
• Marketing Campaign KPI
• Customer Acquisition Cost (CAC): This is the amount of money spent on advertising and marketing campaigns to attract customers, expressed as a ratio of the customers acquired

KPIs for Sales Development Reps

Sales development reps are essential for any sales team. They are responsible for identifying and qualifying potential customers and developing relationships with them.

There is a new breed of salespeople, meaning the buyers have also changed. The old days of hunting for smokestacks are gone.

As a result, sales managers need to track their KPIs to meet their targets.

Some of the most important KPIs for sales development reps include:

• Number of qualified leads generated
• Number of opportunities created
• Number of appointments set
• Number of proposals sent
• Sales accepted

KPIs for VP of Sales

As the head of sales, the VP oversees all sales operations and meets targets. As a result, their KPIs are vitally important in measuring the sales team’s success.

Some of the most important KPIs for the VP of Sales include:

• Number of new customers acquired
• Revenue generated
• Percentage of target achieved
• Number of sales meetings held
• Number of proposals sent
• Sales accepted

How do you calculate a KPI Ratio?

1. Find the desired metric in the left column below that you would like to calculate a KPI ratio.
2. Find the number (numerator and denominator), and divide the numerator by the denominator.
3. For example, if we wanted to know how many conversations it took per lead, we would search “conversations” where “numerator” is equal to “conversations” and search “leads” where “denominator” is equal to “leads.” This will yield a ratio of 1—in other words, one conversation equals one lead. There are more columns on this table for ratios for different metrics.
4. Add up your numbers to achieve your total number of lead conversions and ensure that your KPI Ratio is accurate. For example, if you have 100 conversations and 10 leads, divide 100 by 10 to get 10 leads per conversation.

Conclusion

In conclusion, sales KPIs are a key way for managers to track the progress of their business over time. Try to integrate your marketing KPIs with your sales. Marketing has the leading indicators to be sure you are getting qualified leads.

The most useful KPIs will vary based on their industry and what they hope to achieve for most businesses.

However, some KPIs are common across nearly every business regardless of industry, including revenue per employee and total sales generated. Lastly, it’s important to remember that KPIs should be tracked over time to understand how your KPI performance is changing and identify areas for improvement.

What other metrics do you find in measuring the success of your

The bottom line is that sales KPIs are essential for any sales manager looking to understand how their business performs better. Choosing metrics that will be meaningful for your company and tracking them over time is important. Doing so will help you make the necessary changes to improve your business’s bottom line.

Sales managers are always looking for ways to improve their business performance. Measuring your sales KPIs is a great way to start! This performance article will discuss 21 sales KPIs every manager should measure now.

Before we get started, let’s first define what a KPI is. A KPI, or key performance indicator, is a metric that you use to measure the progress of your business over time. KPIs can be used to track everything from website traffic to customer satisfaction.

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