kpi sales metrics reporting

21 Sales KPIs Every Lucid Sales Manager Should Measure in 2023

2023 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 in 2023.

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’ performance.

You’re a sales manager, and you have no idea what type of sales KPIs to measure in your business.

Sales managers need to understand their business performance using meaningful data, and sales KPIs are the key!

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

What are sales KPIs

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 are a way of measuring the success of a business. Examples of sales KPIs include revenue per employee, number of accounts managed, and customer acquisition cost. Sales metrics can be measured in dollar terms or as percentages.

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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 improves. They also allow businesses to track their progress over time and make changes accordingly.

What are some common sales KPIs?

What are 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

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.

Tracking progress over time is also important. 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 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, the most important responsibility of a sales manager is to ensure that their team is meeting or exceeding their sales goals.

This can be done by setting goals for the team, providing coaching and training, and creating a positive work environment.

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 how they are progressing 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. This can be done by comparing your current KPIs against past metrics.

21 sales KPIs that every manager should measure in 2023

How to track marketing KPIs

Now that we have a basic understanding of sales KPIs and why they are important, let’s look at 21 sales KPIs that 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 number of emails opens per day/week/month
  20. Social media engagement metrics (likes and shares) and frequency
  21. Blog subscriber count and blog subscribers post published in previous months

Example of a KPIs

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 how well your business is doing and whether it is expanding.
  3. Net promoter score (NPS): this measures customer loyalty and how likely customers are to recommend your company to others.
  4. Customer acquisition costs (CACs): these track how much it costs to attract new customers, so you can see what channels are most effective in acquiring new ones.
  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 when purchasing from you.
  7. Gross margin: this measures how much of each dollar you earn to cover your costs, making it a key indicator of profitability.
  8. Customer lifetime value (CLV) estimates how much profit a customer is likely to generate throughout their relationship with your company.
  9. Product mix: understanding what products are selling and which ones are not can help you make better decisions about focusing on.
  10. Sales cycle time: this tracks how long it takes for potential customers to go from initial contact to making a purchase.
  11. Salesperson productivity: measuring how much each salesperson contributes in 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 good your team is attracting and converting leads.
  17. Email open and click-through rates: these metrics can help you determine how effective your email marketing campaigns are.
  18. Social media followers: tracking the number of social media followers you have provides a measure of your brand’s reach.
  19. Website visits: counting how many people 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 end up making a purchase or signing 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 be used to compare with competitor sites.

HubSpot CRM KPI examples

Comparing HubSpot's Marketing Automation to SharpSpring CRM
  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 how much each sale costs 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 include any cancelations or non-renewals of service subscriptions.
  6. Revenue per customer: How much revenue you generate on 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 compared 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 for understanding your business’ performance.

Tracking these KPIs will help you make better decisions about focusing 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.

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

The benefits of tracking and analyzing your sales KPIs over time

benefits tracking analyzing sales KPIs

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

First, doing so provides a snapshot of how well your business is doing at any moment. 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 you could improve.

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’ 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

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 of Sales oversees all sales operations and meeting 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?

How calculate 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 to ensure that your KPI Ratio is accurate. For example, if you have 100 conversations and 10 leads, divide 100 by 10 to get a total of 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 where you may need improvement.

Please see our website or download our free ebook below to learn more about SharpSpring’s feature-rich marketing automation platform!

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 their business perform better. It is important to choose metrics that will be meaningful for your company and track them over time. 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 in 2023.

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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General FAQs

Is it necessary to hire a professional copywriter to write content for websites and blogs if I’m in business?

Yes. Even the most prolific creative person needs some help when it comes to writing compelling copy. Many up-and-coming companies hire professional copywriters not only for the quality of their work but also because your business is likely to make a difference in how many visitors your site gets or how interested they are in what you have to offer to invest money into this new venture.

What KPIs are most important for the sales team to measure in 2023?

We’ve broken down 21 key performance indicators (KPIs) below, covering all major aspects of what the sales team needs to be tracking in 2023. These metrics should include qualitative and quantitative information so managers can track how well their teams are performing without getting too bogged down by extraneous details.

Do you need a strong social media presence for a successful marketing campaign?

One of the first things a company that neglects social media will quickly realize is that it can no longer effectively generate enough new, qualified leads without it. This is because of the two-fold nature of social media: it’s both a form of marketing and a lead generation channel. In other words, if you want to be successful with your marketing campaign, you need to make sure you have a sound strategy for generating quality leads from social media—and one way to do that is by creating an active and engaging account.

What are the most important sales KPIs to track in 2023?

(1) Number of conversations, (2) Lead conversion rate, (3) Sales performance per hour, (4) Prospect to customer conversion rate, (5) sales revenue, and (6) deal size

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