What are some good KPIs for selling

TOP 15 SALES KEY FIGURES

SALES AND SALES KPI EXAMPLES AT A GLANCE

✔ Various templates & designs ✔ Identify and monitor relevant sales key figures

Sales KPIs or. KPIs in sales are performance indicators that are used by both sales teams and top management to monitor the quality of sales activities. Sales metrics help, among other things. in planning and achieving sales goals.

In this article we are going to give you a detailed overview of the most important KPIs in sales. With the right sales key figures, you can control your sales more effectively and analyze and optimize each individual sales process in detail. Use the advantages of modern reporting software to create professional sales dashboards with just a few clicks. This enables you an effective sales controlling, the identification of potential weak points as well as a data-driven optimization of your sales. To go directly to a key figure from the overview, please click the corresponding link. The associated visual examples were created with datapine's KPI software.

Here you will find our overview of the 15 most important sales and sales figures that every salesperson should know:

Sales growth

Monitor the growth of your sales numbers

The fact is, by monitoring your sales growth, you are also tracking the positive development of your business. It should therefore go without saying that you continuously monitor this sales KPI and look at it from different perspectives. For example, let's say that your sales team is focused on different vertical markets, but after a deep analysis of your sales data, it turns out that only a few of them are really profitable. This should be a signal for you to rethink your internal resource allocation and focus your resources on the most profitable vertical markets. Be flexible and creative in the detailed analysis of your sales figures and you will discover a lot of new sales potential.

Performance indicators / recommendation for action

Positive sales growth over a certain period of time indicates that you are fundamentally on the right track with the development of your company.

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Sales Target - Actual vs. Projected Sales

Are you achieving your defined sales goals?

With this sales key figure, you can see at any point in time whether you are on the right track to achieve your planned sales targets. Are your actual sales better or worse than your forecast sales? What assumptions were your goals based on and were you able to confirm them? These questions will help you to take a more critical look at your achieved sales figures and to classify the results realistically and to adjust your future forecasts based on them. If your actual sales are well below your forecast sales, you should try to identify the underlying causes as soon as possible, and a professional Sales BI solution can help you.

Performance indicators / recommendation for action

If there is a significant discrepancy between your forecast and actual sales, you should review your underlying assumptions and adjust your future goals accordingly.

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Average revenue per user

Monitor the development of your average sales per user

ARPU stands for Average Revenue Per Unit. The term unit can also stand for user, account or any other paying customer. In short, this sales figure reflects the average customer turnover and is therefore often referred to in German as the average revenue per user. The calculation is simple: you take your total monthly turnover and divide it by the number of customers in that particular month. It is particularly useful to look at the development of your ARPU in connection with the development of your customer acquisition costs (see next key figure). For example, if your customer acquisition costs rise disproportionately compared to your average revenue per user, this could become a problem in the long term, as you may no longer generate any profits with the sales generated.

Performance indicators / recommendation for action

At best, your average revenue per user (ARPU) should rise steadily with constant or falling customer acquisition costs.

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Customer acquisition costs

Analyze all costs for a new customer

When we speak of the cost of new customer acquisition (CAC), we are referring to all the actual costs incurred for registering or signing up for a new customer. This key figure is one of the most important sales KPIs, as it is required to calculate numerous other sales key figures such as the Customer Lifetime Value (CLV). The type of costs incurred can be very branch and industry-specific, but are usually largely incurred in the marketing and sales departments. The desired amortization period for your customer acquisition costs, on the other hand, depends heavily on your business model. For example, with a SaaS (Software-as-a-Service) model with monthly recurring sales (MRR), the payback period should be between 6 to 12 months.

Performance indicators / recommendation for action

As a rule, your goal is to reduce customer acquisition costs or to keep them constant with increasing ARPU or CLV.

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Customer Value (CLV)

What is the average profit from your business relationships?

Your individual Customer Lifetime Value (CLV) or customer value is the cumulative sales that you expect to achieve on average from a customer over the entire duration of a business relationship, minus your average customer acquisition costs. This sales figure is of central importance for your overall company performance, as it reflects the relationships between several sales KPIs that are relevant to success. For example, if your average revenue per user (ARPU) increases evenly with your average customer value (CLV) month after month, this means that you will generate greater profits per business relationship in the long term. Furthermore, by calculating the CLV, you can understand how the amount of your customer acquisition costs (CAC) affects the profitability of your individual business relationships.

Performance indicators / recommendation for action

As long as the average revenue per user (ARPU) and the customer lifetime value grow evenly, everything is in the green.

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Customer churn rate

What percentage of customers are you losing?

The customer churn rate reflects the percentage of customers a company loses within a defined period of time (e.g. within a month). Accordingly, it is the pardon of the new customer rate. Especially in the B2B area and especially for SaaS companies with subscription models, this sales figure is extremely relevant to success, because a high customer churn rate has a very negative effect on the growth rate. If, on the other hand, the customer churn is very low or even zero, every new customer with subscription models automatically also means sales growth, because the MRR (Monthly Recurring Revenue) is increased. Furthermore, a low customer churn rate also has a positive effect on the previously discussed customer value (CLV).

Performance indicators / recommendation for action

You have to replace every lost customer with a new one without ultimately growing. This makes it clear why you want to keep this sales KPI as low as possible. It is a good indicator of the quality of your customer loyalty measures.

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Sales cycle length

Identify the relevant influencing factors

First try to get benchmarks for your industry or related industries. As a rule, every sales process can be divided into several phases, which can then be viewed and optimized in a differentiated manner. For this it is imperative to analyze the influencing factors of the individual phases in detail. We also recommend that you compare the length of the identified sales phases among your different sales employees. A quick comparison can show which employees are most effective in the different phases. You may then be able to scale this approach across the company. In addition, these sales metrics can also be used to track the progress of your individual sales employees over time and can automatically alert you if individual employees need additional training in certain sales phases.

Performance indicators / recommendation for action

After detailed analysis, you should try to continuously reduce your average sales cycle length and thus reduce your sales costs.

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Lead-to-opportunity ratio

Compare the number of qualified and unqualified leads

This KPI in sales relates to customer qualification (lead qualification), which should be the starting point of your lead management process. First of all, every incoming lead is unqualified. Conversely, a qualified lead refers to a lead that meets the requirements specified by you, which usually increase the likelihood of a purchase. A widely used lead qualification method, especially for B2B leads, is the so-called BANT method. According to BANT, qualified leads have a budget and authority as well as a need and a timeline. In other words, those leads who have a specific need for our product, already have a specific schedule for implementation or purchase, and who also have the necessary budget and the necessary decision-making power. With the help of the lead-to-opportunity ratio, you can adequately plan how many unqualified leads you need in a certain period of time in order to provide the desired number of qualified leads for your sales employees.

Performance indicators / recommendation for action

Develop your individual qualification method and try to continuously improve the lead-to-opportunity ratio.

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Opportunity-to-win ratio

How many qualified leads do you need to achieve your sales goals?

This sales KPI shows how effectively a sales team or sales manager is converting qualified leads into paying customers. A low opportunity-to-win ratio can have various causes. On the one hand, it could be because you qualify your leads using the wrong factors in the first step of lead management. If this assumption is confirmed for all sales employees, you should reconsider your original qualification method. However, if there are major differences between different sales employees or teams, this could be due to the different approaches or approaches to the already qualified leads. Monitoring the opportunity-to-win ratio for each individual employee helps you to identify weaknesses in your sales process as well as to work out the most effective approaches and to establish them in your existing processes.

Performance indicators / recommendation for action

The higher the opportunity-to-win ratio, the more effective your sales force will be in the last phase of the sales pipeline. If you're not converting at least 5 to 10 percent of qualified leads into paying customers, you should reconsider your qualification process.

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Lead conversion ratio

How many leads do you need to reach the planned number of new customers?

With the help of the lead conversion ratio, you can forecast how many leads you will need in a certain period of time (for example per month) in order to achieve your sales goals. Therefore, this key figure is one of the most important sales KPIs to coordinate your sales strategy, especially with the marketing department, because it is usually responsible for the sufficient supply of leads. In contrast to the opportunity-to-win ratio, which should not be below 5 percent in view of your limited sales resources, there is no generally applicable guide value for the lead conversion ratio. Some successful companies may have a lead conversion ratio of as little as 1%, while others reach as much as 15%. The latter, however, may have 15 times higher lead costs and if both companies adequately qualify their leads and process them accordingly, the same number of new customers will remain in the end in this scenario.

Performance indicators / recommendation for action

Calculate your individual lead conversion ratio and use it to determine the number of leads required to fully utilize your sales team.

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Number of sales opportunities

What is the potential order value?

As already became clear in the sales figures discussed last, the number of current (new) sales opportunities plays a decisive role in sales. Whereas the number of (unqualified) leads is an important KPI in marketing, only valid, qualified leads are really important for sales. For example, leads with incorrect contact information or a lack of budget are worthless for sales. In addition to a detailed temporal monitoring of the number of new sales opportunities, e. On a daily basis, for example, the potential order value of these open "sales opportunities" is also an interesting key figure. We have shown this as an example on our visual KPI example. In addition, you will find trend indicators that compare the current performance with the previous month.

Performance indicators / recommendation for action

In addition to the number of (new) sales opportunities, also monitor their potential order value. This allows you to identify bottlenecks in your sales funnel at an early stage.

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Sales Opportunity Score

Are you prioritizing your sales opportunities?

Every single sales opportunity first of all meets your minimum requirements for a lead for sales. Of course, there are still different levels of potential and sales opportunities within the opportunities. This is where scoring models come into play, with the help of which you assign a standardized value to your sales opportunities. For example, a value from 1 to 5, as shown in our example. Such an assessment is used to further prioritize your opportunities in order to use your sales resources in the best possible way. It ensures that particularly profitable sales opportunities are processed promptly and with a high priority. Modern scoring models can assign the corresponding values ​​fully automatically or partially automatically based on the most important underlying influencing factors. In practice, this process is sometimes also carried out manually.

Performance indicators / recommendation for action

Adequate opportunity scoring enables you to achieve your sales targets even in competitive markets. It ensures that your existing sales resources are used in the best possible way.

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Sales per sales employee

How much revenue do your salespeople bring in?

This is a KPI in sales, which can provide you with valuable information on the one hand when assessing your sales staff individually and when planning the size of your sales team. Ultimately, salespeople in particular have to be measured by the sales they generate. It is not uncommon for this to have a direct impact on their salary. In our visual KPI example we have shown the course of the generated monthly sales for 5 different salespeople over a period of 12 months. It becomes clear that the set sales target of € 30,000 per month was only achieved by 2 of the 5 salespeople in the long term. Here it is important to identify the underlying causes. Do the other sales employees receive "worse" opportunities (see Sales Opportunity Score)? Is the average contract value comparable? Do you respond promptly to inquiries?

Performance indicators / recommendation for action

Monitor and analyze the generated sales for each sales employee in detail. Set realistic goals and use insights from your analyzes to optimize your sales strategy with the help of identified best practices.

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Upsell and cross-sell rate

How effective are your sales methods?

Upsell and cross-selling is about not just getting the customer excited about a single and the cheapest product, but also about convincing them of other products and / or more expensive alternatives. There are numerous methods and tactics to increase your upsell and cross-sell rates, which we do not want to go into further here.In any case, in addition to an aggregated view of these rates, you should also look at them for individual sales employees and for various products. You may find abnormalities or patterns, for example which products / services can be sold particularly well together or which approach and arguments an employee uses who sells packages that are above average.

Performance indicators / recommendation for action

Compare your upsell and cross-sell rates on an employee and product basis. Identify successful methods and tactics and implement them across the team.

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Incremental Sales

Which campaigns increase your sales?

Our last sales key figure comes from English and is "Incremental Sales" and is sometimes referred to in German as incremental sales. This KPI is also often used in marketing and describes the newly generated sales of an advertising or sales campaign, for example from an email campaign. For example, if your turnover is usually € 75,000 and the campaign under consideration increases this to € 95,000, then the incremental turnover is € 20,000. This can be applied to any campaign in the same way. In our visual sales KPI example, we have shown this for various campaigns on social networks (Twitter, Facebook, Instagram) as well as for email, search engine and display campaigns.

Performance indicators / recommendation for action

As a matter of principle, monitor this key figure for all sales campaigns carried out. Together with the return on investment (ROI), this is a solid analysis basis to evaluate the effectiveness and profitability of the campaigns carried out.

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