Use these 20 awesome sales performance metrics to find insights, new strategies, and boost your revenues this year.
Data is the new official king of sales. Businesses track their salespeople and processes from their phones. Lightning fast analytics are now at the tip of your fingers. It’s all incredibly useful, but how do you know what sales performance metrics to focus on?
Breaking it down: how sales managers should approach sales performance metrics
There are different types of metrics for sales performance. Each has a cause and effect relationship with other.
- Process-driven metrics show the effectiveness of sales funnels.
- Human metrics measure productivity on an individual basis.
These two make up the bulk of what sales managers should track. You have the macro-level sales performance metrics that give a bird’s eye view of growth and revenues.
A little confusing, right? It’s okay. We’re going to map out them out for you.
Seeing the big picture: tracking five macro metrics from a bird’s eye view
All of your sales metrics come together to tell one story: revenue and growth. It’s the end-all goal for every manager and business owner. Each person, strategy, and process leads to it.
Here are the five macro sales performance metrics to follow:
1. Revenue quotas per quarter
Has your sales team hit the forecasted goal for this quarter? Starting here will tell you where to look and how to break down your metrics to find the answer.
2. Sales growth
Pinpoint the times of year with the most potential. Look for accumulated growth from month to month, quarter to quarter. Compare with growth metrics from last year.
3. Volume of sales per product
Which products are performing best and at what time? Locate hidden potential for lesser product lines and see where the opportunity lies.
4. Percentage of team hitting monthly quota
Look for a balanced percentage of your teams’ productivity. If few are hitting the mark, it might be a problem with your sales process.
5. Average sales per rep
Is your team performing at a high rate? The bird’s eye view will show which salesperson you should look into or provide further training.
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Polishing the parts: tracking five sales performance metrics for individual team members
The parts are what keeps the engine running smoothly. Keep track of the KPIs that show productiveness, consistency, and closing ratio.
1. Success rates with difficult leads
How does a salesperson perform with cold leads? Look into their situational performance to uncover hidden talent.
2. Speed of initial follow-ups
Speed is of the essence in many industries. The quicker your salespeople follow up, the better chance they have to qualify and close.
3. Average revenue per deal
He may often be closing, but is he going for the small fish? And how often does he take an opportunity to upsell or cross-sell products?
4. Time spent per deal
Check the amount time he spends with a prospect from the first contact to purchase. Time management plays a huge part in growth over time.
5. Close ratio percentage
A salesperson can do everything right, but the result can only be one metric: did he close? How often does he close per opportunity?
Pumping quality fuel: tracking effectiveness in your lead generation channels
Are you tracking where your traffic comes from? Investing in high-performing lead sources feeds your company the fuel it needs. Mediocre sources waste money, time, and creates frustration among teams.
1. Number of leads per period
Watch your lead sources for consistency. Are they sending you an equal amount of customers month-to-month?
2. Closing ratio per lead channel
The quality of your lead generators is just as important as the quantity (even more crucial, some would argue).
3. Cost vs. revenue
Are you profiting from the leads your sources send you? Check your cost-benefit analysis on a regular schedule.
4. Average revenue per close
Lead sources that bring in high revenues, even not too often, may be worth more investment.
Maintaining a sound structure: plugging leaks in your sales funnel strategy
The framework of your sales process affects outcomes. Salespeople (and customers) need a structure that works. Tracking sales performance metrics in the funnel may give insight into where improvements are needed.
1. Average speed of deals
How long does it take for a prospect to move to each step in the sales funnel? There may be unnecessary steps to cut or tighten up.
2. Percentage of dropouts
Look for how many leads leak through month-to-month.
3. Success rate at each step
Track where your prospects are held up in the funnel. How can you make it easier for the customer to move forward?
Coming full circle: retention, reviews, and referrals
The lifecycle of your customers significantly impacts your bottom line. You know the saying: your best customers are repeat customers. That’s where the real money is. Track your progress for bringing them back and how many referrals they bring with them.
1. Follow-up requests for reviews
Are your salespeople asking new customers to engage on social media, write a review or provide a testimonial?
2. Referrals generated per customer
A smart salesperson builds his own lead generation machine through referrals and non-stop service.
3. Average revenue per customer after the sale
Does your company offer products or services that attract repeat purchases? Track how much your average customer spends after the first purchase.
Want your salespeople to follow-up faster and close the deal? Schedule a free demo of our sales follow-up software and see how easy it is!
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