Key metrics in sales, also known as KPIs (Key Performance Indicators), allow you to measure the performance of your sales team, or even your own performance.
In addition, these metrics can be used to assess the success of strategies, identify areas for improvement, and make informed decisions.
So, what are the key metrics in sales?
They can be divided into two main categories:
- Outcome Metrics: measuring the final results of sales, such as revenue, the number of new customers, or market growth.
- Activity Metrics: measuring the activities performed by salespeople, such as the number of calls made, the number of emails sent, or the number of scheduled meetings.
Specifically, the most important ones are:
- Revenue: the amount of money a company generates from sales.
- New Customers: the number of new customers a company acquires.
- Existing Customers: those your company manages to retain.
- Conversion Rate: the percentage of sales opportunities that turn into actual sales.
- Market Share: the proportion of a company’s sales in a specific market.
- Customer Acquisition Cost (CAC): the amount of money a company spends to acquire a new customer.
- Return on Investment (ROI) Payback Period: the amount of time it takes for your company to recover the investment made in sales.
How to apply these metrics?
Key sales metrics should be applied strategically to achieve the best results. Therefore, we invite you to follow these steps:
- Set clear objectives: What do you want to measure? What do you want to achieve?
- Select the right metrics: They should be relevant to your objectives. It makes no sense to collect data on metrics that won’t help you achieve them.
- Consistently collect data: This means using the same methods and tools to collect data over time.
- Analyze the data: What does the analysis reveal? Are there areas for improvement?
- Take action: The data should be used to make informed decisions. If you identify areas for improvement, take action to correct them.
What benefits come from applying them correctly?
Measuring these indicators helps improve sales performance, enhances decision-making, and promotes process transparency by fostering better communication and collaboration between the sales team and other departments.
By strategically collecting and analyzing data, we ensure the achievement of our business goals.