20 must-have sales KPIs for sales teams

Published on 10/04/2024

20 must-have sales KPIs for sales teams

Published on 10/04/2024
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20 must-have sales KPIs for sales teams

Sales KPIs are crucial for the success of sales teams. The survival of any company depends on the revenue generated from the products and services it offers to its customers. The sales team is likely to have the most influence on the profitability of the business.

All strategic decisions affecting the operation of this department cannot be guided by leaders’ intuition alone but must be supported by data and performance indicators. Improving the sales process must be a priority for any company.

The sales KPIs that we need to control should cover the entire sales process, from the tactics used to attract new customers, conversions from these potential prospects to free trials, the number of opportunities sent, to the conversion rate to a customer, etc. Fortunately, nowadays, we work with technological tools that provide us with a wealth of data. Integrating multiple data sources into a single database allows us to monitor all the critical factors that we must supervise to ensure the profitability of our business.

There is no “one-size-fits-all”; each company must establish its list of sales KPIs based on the strategies it has defined, the objectives it pursues, and the different channels it uses. In this post, we will briefly review the main sales KPIs that should be measured, provided that the data source is available to calculate them. Likewise, we will detail other KPIs that can help us measure the effectiveness of outbound and inbound strategies or the productivity of each agent.

Sales KPI: Outbound

In this section, we have included a set of metrics that focus on each step of the sales pipeline. Monitoring all these steps is important for analyzing the phases of the process, detecting bottlenecks, and potential opportunities for improvement.

  • Number of emails sent: This KPI represents the absolute number of emails sent during a period.
  • Email open rate: The email open rate measures the percentage of people who open an email.
  • Click-through rate: Similar to the previous metric, the click-through rate measures the percentage of recipients who click on a link included in the email they received.
  • Email response rate: Percentage of responses out of the total emails sent.
  • Average / maximum / minimum response time: A sales KPI regarding the time it takes for an email recipient, i.e., a potential customer, to respond.
  • Calls made: It can be measured over the total number of emails sent or calculated, over the total responses, how many people we have been able to talk to.
  • Average / maximum number of follow-ups before contact: Statistics regarding the total number of contact attempts made by a sales agent before being able to speak with the lead.
  • Scheduled demos: When applicable, it represents the absolute number of scheduled demonstrations. It refers to potential customers who have already responded and expressed interest in the company’s products but have requested a live demonstration before considering conversion.
  • Requests for free trials: Absolute number of leads who, after responding positively and/or seeing a demo, opt to try the product for a predefined period.

Pipeline Metrics

Being able to monitor the progress of the sales team at a higher level is also very important. Only in this way can we measure the performance of our sales team and obtain a predictive model of future revenues.

  • Sales cycle duration: The sales cycle is really the time elapsed from the first contact with a potential customer until their transaction is finally closed (whether won or lost). The duration of the sales cycle can be interpreted as an indicator of the sales team’s performance. If it is considerably lower than the average in our sector, it may mean that the sales team is doing a good job persuading customers to buy faster than the sales department of its competitor.
  • Total opportunities opened per month: This sales KPIs represents the absolute number of potential customers that turned into opportunities each month. A potential customer becomes an opportunity when they have been qualified by email or phone and meet the qualification criteria of the sales team.
  • Total offers sent: Absolute number of proposals/quotes sent to open opportunities.
  • Total opportunities Closed per month: The absolute amount of opportunities closed each month, whether won or lost.
  • Conversion rate of qualified prospects: This sales KPIs reflects the number of potential customers that turned into opportunities each month.
  • Conversion rate to customer: Reflects the number of opportunities that turned into paying customers each month.
  • Average contract value or average revenue per customer: This metric represents the average value of each sale. Quantifying this value allows the sales team to identify the most promising opportunities.

Conversion Metrics

  • Percentage of won offers: The KPI calculates the percentage of offers won out of all offers sent and closed during a specific period.
  • Percentage of lost offers: The percentage of offers lost out of all offers sent and closed during a specific period.
  • Overall trend in opportunity generation (compared to the number of previous months): A comparative measure between the sales opportunities generated this month versus the previous month.

Sales Team Productivity KPI

  • Distribution of prospects by sales agents: When a potential customer is created, they are assigned to an owner who is responsible for staying in touch with them.
  • Distribution of opportunities by sales agent: Sales representatives are responsible for qualifying prospects and defining sales opportunities. This metric, along with the previous one, can reflect, on one hand, the quality of the work previously done by the marketing team but, above all, the quality or skills of the sales agent. Sales representatives with many opportunities are probably more convincing than others, carry out thorough follow-ups of all accounts, etc.
  • Percentage of sales agents reaching 100% of their goals: Each salesperson has a daily or monthly target, for example, the total number of potential customers or opportunities that turn into paying customers. Measuring the percentage of goal achievement allows us to establish a ranking of our sales team but also helps us check if we have defined our goals correctly. If all salespeople achieve 100% of their goals every month, it is likely that we have set unambitious goals. Otherwise, if no one even comes close to the goals, we should review them downward or, at least, understand what is failing within the process. Reviewing goals and improvement points goes hand in hand with a deep analysis to calculate the productivity of your sales team; for this, many companies use measurement software. At WorkMeter, we have performance management, a software that measures your team’s productivity, helps focus their work activities, and enhances their performance to achieve desired goals.

Metric of profit and revenue

  • Total revenue: the final sales KPIs that translates sales efforts into value. It can also serve as a motivator for the sales team.
  • Total revenue generated by the top 10% of customers: by identifying the company’s most valuable customers and tracking the revenue they generate, the sales team gains more insight into the value of each one, which will help prioritize the company’s customers. This KPI is also very important when checking if our customer portfolio respects the Pareto principle. Concentrating 80% of the company’s revenue in the hands of 20% of the customers represents a potentially high risk for the company, especially if the loyalty processes are not optimized.
  • Revenue by product: this metric helps us identify our flagship products. Relating this KPI to others such as the conversion rate of prospects by product to end customers will allow us to make strategic marketing decisions, lead generation, etc.

Today, the competition that a company must face is increasing. In the era of Big Data, we have no choice but to leverage all available data sources to extract business intelligence. Companies can only thrive through continuous monitoring of the right performance indicators and business metrics within a data-driven culture.

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