Sales KPIs or Sales Key Performance Indicators are the metrics that help you measure:
1) the health of your sales pipeline and
2) the effectiveness of your sales team.
Identifying the right sales metrics to track is crucial for any sales manager who wants to achieve their goals. Here are the top four B2B sales metrics, according to us, that you should be tracking on a regular basis to attain sales growth.
Tracking right KPIs for sales help you in making smarter and faster decisions. In succession, you will be investing in sophisticated sales tools to process large quantities of information. If you are tracking right sales metrics you are helping your organization in minimizing wastage of resources, instantly driving better results.
Here is the list of crucial sales KPIs that you should be focusing on:
1) Track ‘conversations’ and ‘activities’ to make an impact
Of course, the end goal is the conversion but tracking conversion alone will give you a partial picture of the performance of your team. Great sales managers spend substantial time in coaching and guiding their team. It can be achieved at the initial stage in sales pipeline by following basic things such as a number of conversations. This falls under the purview of ‘Activity Tracking’.
Tracking how many conversations are actually taking place between your team and the prospects will help you evaluate if your sales team is going after the right opportunities or not.
2) Speed to get the first appointment with decision makers
As soon as the prospects get identified, validated and qualified they need to be contacted without further delay otherwise your team might end up losing an opportunity to your competitor. This is an important metric that often gets neglected.
The speed to get an appointment for the demo will help you know how efficient your sales executives are.
3) Customer engagement score
If you measure customer engagement you are most likely to identify customers who are ready for upselling and cross-sell. Also, it will let you know how the existing customers are interacting with your product/ service. This enables you to understand the pain point of customers and what needs to be improved in terms of product offering.
Your customer engagement score is tracked based on the product usage. A higher score is directly proportional to a happy and satisfied customer.
4) Quotations generated and closing rate
How many quotations your sales executives generate after face to face interaction with decision makers on the buyer side? How many customers need to be acquired so that your team hits the sales target?
You need to look at historical data to determine what your sales executives have to do on daily/ weekly basis in order to achieve organization’s objectives. Through historical data, you get an overview of what you did in the past. For best result, historical data has to be combined with current trends to make estimates for the future.