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Examples of KPIs in Sales: Measure and Track Your Sales Goal

March 11, 2022

Sales teams need to track their progress and success in order to improve their performance. KPIs, or key performance indicators, are a great way to do this. But what are the best examples of KPIs in sales?

How can you set them up so that they help you achieve your goals? In this guide, we’ll discuss the different types of KPIs and give examples of KPIs in sales for each one. 

Here are the top 18 KPIs for sales that modern sales teams use

Here are 18 examples of KPIs that modern sales teams use in sales. Some of these KPIs may have overlapping qualities. The effectiveness and selection of each KPI should be determined by the business, marketing, or sales models. Find out how to identify the KPIs of your organization.

  • Trials
  • Sales Qualified Leads
  • Sales Opportunities
  • Monthly Demo and Onboarding calls
  • Call Volume per Rep
  • Sales Cycle Length
  • Sales per Rep
  • Contact Customer Conversion Rate
  • Trial Conversion Rate
  • Sales Bookings
  • Lead-to-Win Rate
  • Average Cost per Lead
  • Cost of customer acquisition
  • Average Selling Price
  • MRR Growth Rate
  • MRR Expansion and New
  • Customer Lifetime Value
  • Retention and Churn Rates

Influencing others through sales activities has been a hallmark.

Modern sales teams use dynamic KPIs to track sales performance.

Let’s take SaaS as an example. SaaS is a monthly service or product offering that focuses only on one month. This business model allows sales teams the freedom to focus on monthly product or service offerings rather than on closing large-scale deals.

Modern sales teams are focused on converting qualified leads into customers and increasing customer retention rates. All KPIs in sales that will benefit sales teams and their businesses.

1. Trials

Both sales and marketing can be measured using trials. Trials measure the number of accounts opened within a certain time period. This KPI can be used by marketing and sales to motivate each other.

Marketing can encourage more trials, which leads sales to qualify for and close higher quality leads.

2. Sales Qualified Leads

Sales Qualified Leads (SQLs) are the direct result of trials. If they meet certain criteria, sales teams can qualify leads to be qualified for sales qualification. Before they can become a SQL, they must be identified as Marketing Qualified Leads.

Prospects who indicate an intention to buy are called Sales Qualified leads. This KPI is crucial for sales teams to monitor as the more SQLs you have the better your chances of converting customers.

3. Sales Opportunities

Sales teams can view all pending opportunities and decide which opportunities to pursue.

This KPI organizes prospects based on their potential value and likelihood of a close deal. Each prospect is assigned an approximate purchase price to help you prioritize your efforts.

Sales prospects can be ranked according to their likelihood of winning if the sales team has enough information from customers so they can understand what makes a close.

4. Monthly Demo and Onboarding calls

Onboarding calls refer to the number of demos and/or onboarding calls the sales team makes each month. Demo and onboarding calls are crucial steps in closing a deal. This KPI in sales is important to track.

This metric can be segmented, along with many other KPIs in sales, to track individual employee performance.

5. Call Volume per Sales Rep

Call volume is a measure of the number of calls and outreach that each sales representative has made to potential customers for their outbound teams.

This KPI can be further broken down into whether the call was answered (or opened an email), how long each call took and the level of interest. It also shows how many leads were discovered for each number.

6. Sales Cycle Length

What is the average sales price? How long does it take for a sale to close? Sales teams can determine how long it takes to close a deal.

This KPI will help you set sales targets and forecast revenue. It also gives you an average time frame and the required resources for each customer win.

7. Sales per Rep

Sales per rep allows sales leaders to track at an employee level how many sales each rep has made. This KPI can be used to establish a baseline sales level and help you set personal goals. It can also help you identify strengths and areas for improvement for each rep.

Although it may take a sales representative longer to close a sale, the deal could be more valuable and retain customers for longer.

To discourage competition and encourage comparison between reps, it is important not to use the KPI sales per rep. Instead, it should serve as a performance indicator for each employee.

8. Contact Customer Conversion Rate

The contact to customer conversion ratio is a modern sales KPI that tracks the conversion rate from contact to customer. This is the number of contacts that have been converted into sales. Contacts can be past customers, current customers or qualified leads who have some type of relationship with you company.

This KPI should be used to assess the effectiveness of sales teams in securing and growing customer relationships. This KPI can also help sales teams evaluate customer relationship management.

9. Conversion Rate Trial

The trial conversion rate measures the percentage of trial users that have converted to paid accounts. This KPI is only for SaaS sales staff members, but it’s still important.

Analyzing the trial conversion rate can help you identify your target audience. To identify the most likely demographics and companies to use the product, sales teams can use trial conversion rate analysis to identify these people. They can then focus on attracting these users.

10. Sales Bookings

Sales bookings are a measure for the total “wins”, in dollars. They are determined by closing deals or committed sales within a given time frame. Bookings are a motivator for modern SaaS sales teams.

It can be broken down into multiple categories, including sales bookings per region and sales bookings by employee.

11. Lead-to-Win Rate

What is the ratio of the number of closed sales to the number of leads? The lead-to win ratio helps sales teams to understand product market fit and pricing structure. It also helps them decide if the sales strategies they used should be used in future sales.

This KPI should also be shared to align sales, marketing and product teams. It is important to note that lead rate is an account-focused KPI. Lead-to-win rates measures leads, not customers. Contact to customer conversion rate measures existing customers.

12. Average Cost Per Lead

Cost per lead answers the question “How much does one lead cost to generate?” Modern sales teams want to save time and cut down on their spending on leads. This KPI is important to monitor because it will impact your customer acquisition costs.

The average cost per lead KPI (or average cost) is the sum all marketing expenses, including employee wages.

13. Customer acquisition costs

Customer Acquisition Cost (CAC) is a key KPI in sales that measures the cost of acquiring customers. This metric is important for sales teams. It is calculated by adding all marketing costs and subtracting the number of new customers acquired over a time period.

If your CAC is lower, you will have a higher efficiency in acquiring customers. Sales teams should compare customer acquisition costs across different customer segments to understand which customers are more profitable.

14. Average Selling Price

The average selling price is the average sales value. This allows the sales team assign a value for each opportunity. This metric can be applied for a product, service, or entire market.

This KPI can be used in conjunction with other metrics that are related to pricing models to help a team estimate the true dollar value of each lead.

15. MRR Growth Rate

Your monthly sales growth is the increase in your sales revenue each months. This is a reasonable projection for most SaaS sales teams. It can also be expressed in an annual timeframe.

Modern sales leaders are able to monitor sales growth month over month and see trends in sales revenue and take action, rather than relying only on reflective reporting.

Setting sales revenue goals for an individual or a team can motivate sales performance and keep sales efforts aligned.

16. MRR Expansion and New

MRR, or monthly revenue recurring, is the sum of all customers plus the number of customers who have paid.

The new MRR is the monthly recurring income you have earned in the past month.

SaaS businesses should consider expanding MRR as an important metric. Customers who have upgraded their plans can get an expansion MRR.

Modern sales teams don’t stop with closing deals. Expansion and new MRR can be achieved by building relationships with existing customers. The best companies have an expansion MRR ratio between 20-40% per month. This is a benchmark.

17. Customer Lifetime Value

Sales teams must understand more than the dollar value of a deal. They must also understand how much revenue the closed deal generates over time. This will help them understand the true value of a win.

The Customer Lifetime Value KPI can also be calculated as follows:

Lifetime Value = Gross Margin% ( 1/Monthly Churn ) X Average Monthly Subscription Revenue per Customer

Customer lifetime value is a popular metric beyond sales teams. Listen to the Metric Stack podcast and learn why LTV is important for founders.

18. New and Expansion MRR

It is important to monitor retention and churn rates after closing a deal. The churn rate measures how sales teams are changing. Modern sales teams don’t stop when they have closed a deal.

Sales are responsible for making sure customers stay happy and don’t churn. Another way to look at churn is through the lens of renewal and retention using metrics like Gross Revenue Retention Ratio. Learn more about the churn rate.

 

Conclusion

Sales teams need to track their progress and success in order to improve their performance. KPIs, or key performance indicators, are a great way to do this. We’ve discussed the best examples of KPIs in sales. 

You can now set them up so that they help you achieve your business goals.

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