Sales is a numbers game in more ways than one. The amount of data that one salesperson can generate – let alone an entire sales team! – can be staggering.
More, though, is not always better.
When it comes to your team’s key performance indicators, or KPIs for short, things can get out of hand pretty quickly. Revenue, cost per lead, conversion rates, engagement; the options are pretty much endless. Which is why it’s important to focus on the handful of KPIs that, when monitored, provide the most insight into how your business and sales team is performing.
Let’s look at five KPIs your team should be tracking, if they aren’t already, and why.
If you’re not tracking this key indicator… you’re probably about to go out of business! Not to be obtuse, but tracking revenue is, for most businesses, the single most important indicator of the company’s health. For sales professionals, this boils down to tracking the revenue their activities and closed deals generates.
Customer Lifetime Value
Keeping your costs low isn’t always the best way to make your customer acquisition process more efficient.
By looking at Customer Lifetime Value, you see what value your team is getting from each long-term customer relationship. You can use this information to hone in on the channels and strategies that land the most valuable customers.
This sales-specific figure shows you how many leads are coming into the sales department each month. You can use this to identify slow times, boom times, and hone in on what sales professionals are pulling in the leads versus who might need a boost.
Leads are great and all, but only if they end up turning into paying customers, right?
The rate at which your leads convert into paying customers is your conversion rate, and is a very strong indicator of a variety of things, from how truly “qualified” your leads are, what sales professionals are having the most success converting leads, and what characteristics define a qualified lead.
Customer Retention Rate
Just like it’s great to have leads only if they end up turning into customers, it’s only great to have customers if they stick around! Your customer retention rate reveals what portion of your paying customers stay, what portion bounce, and strategies that work to keep customers coming back for more.
One search online generates dozens, even hundreds of suggestions for KPIs you need to pay attention to. Stick to the ones listed above, though, and you’ll have a firm grasp on the health of your sales department and your organization as a whole.
To better track these KPIs in your Salesforce dashboard, install something like our sales acceleration tool. You can meet and beat your KPIs by end of year.