In this article, we will share with you the most critical KPI examples for sales, which will enable you to manage your sales team more effectively and optimize every single sales process in detail. That way, you will be able to control your sales activities, identify potential bottlenecks, and optimize your sales BI processes more effectively. These are the Key Performance Indicators (KPIs) that every sales leader needs to be tracking to measure the effectiveness of their sales teams.
Lead to Opportunity Conversion Ratio
When it comes to sales leads, quality is a big concern for many businesses. This is mainly because not all leads are equally qualified. Measuring how many leads turn into real opportunities allows you to check the effectiveness of different marketing and lead generation activities.
Opportunities to Sales Conversion Rate
The second ratio to look up is the opportunity conversion ratio. Measuring how many opportunities your sales team converts to sales helps to identify their effectiveness as well as the areas for improvement.
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Length of The Sales Cycle
By tracking the number of days it takes for a lead to turn into a sales order, sales leaders can look for the bottlenecks and problems in the sale funnel and see which sales reps are performing better than the others.
Key Sales Activity
By tracking sales activities like lead response time, timely followup, and pipeline nurturing, leaders can see if reps are doing enough of the right activities to reach targets. KPIs can be further broken down into whether the call was answered, the amount of time and effort spent on the call, if the email was opened or replied to, and actual meetings/presentations delivered.
Estimated Value of Sales Pipeline
A sales pipeline is a visual snapshot of your sales process and where prospects are in it. By regularly reviewing the total value of individual reps’ pipelines, leaders can forecast future sales, identify possible gaps in reaching targets, and create action plans to ensure they do.
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Average Order Value
Average order value (AOV) is the average amount spent each time a customer places a sales order. By tracking this value leader can understand shopper behaviors and how much they are willing to spend on the product. This helps to decide pricing strategies, whether there’s room for upsells and if certain reps consistently give large discounts.
Team leaders can keep an eye on trends of certain new or high performing products, as well as possible reluctance or difficulties reps, might have to sell other products. This KPI can also point out the possible competition in the marketplace or the positive effects of marketing efforts.
It can sound like a daunting task when you have to track all the sales KPI’s, but the good news is you don’t have to number crunch by hand with a pencil and paper. Using Salesforce monitoring software like SalesQ you can always stay on top of your sales team activities and important KPIs right from your smartphone.